Canada (National Revenue) v. Lalancette
Even if the Tax Court applied an incorrect test for non-arm's length relationships, the Federal Court of Appeal concluded that, given the particular facts, the Tax Court's conclusion was not shown to be erroneous, and therefore the appeal was dismissed.
Source-derived case information.
- Citation
- 2018 FCA 225
- Parties
- Appellant: THE MINISTER OF NATIONAL REVENUE; Respondent: ÉRIC LALANCETTE; Respondent: DANNY ALLAIRE; Respondent: CHRISTIAN MARTEL; Respondent: ARCI CABINET COMPTABLE INC.
- Court
- Federal Court of Appeal
- Jurisdiction
- Canada
- Judgment Date
- 10 December 2018
- Procedural Posture
- Tax Appeal / Federal Court of Appeal Judgment (dismissed)
- Outcome
- Appeal dismissed without costs
- Legal Topics
- Non Arm's Length Relationship, Standard of Review, Appeal Dismissal, Tax Court of Canada Procedure
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
THE MINISTER OF NATIONAL REVENUE
Appellant
ÉRIC LALANCETTE
Respondent
DANNY ALLAIRE
Respondent
CHRISTIAN MARTEL
Respondent
ARCI CABINET COMPTABLE INC.
Respondent
Procedural Posture
Tax Appeal / Federal Court of Appeal Judgment (dismissed)
Legal Issues
- 1 Whether the Tax Court erred in applying the test for determining non-arm's length relationships
- 2 Whether the Tax Court's conclusion on non-arm's length was erroneous on the facts such that the Federal Court of Appeal should intervene
- 3 Whether the appeal should be dismissed despite a possible error in the legal test applied below
Ratio Decidendi
Even if the Tax Court applied an incorrect test for non-arm's length relationships, the Federal Court of Appeal concluded that, given the particular facts, the Tax Court's conclusion was not shown to be erroneous, and therefore the appeal was dismissed.
Court Disposition
Appeal dismissed without costs
Orders
- Appeal dismissed without costs.
Full Case Text
Judgment text and source record
1 paragraphs
Canada (National Revenue) v. Lalancette Court (s) Database Federal Court of Appeal Decisions Date 2018-12-10 Neutral citation 2018 FCA 225 File numbers A-426-17, A-427-17, A-428-17 Decision Content Date: 20181210 Dockets: A-426-17 A-427-17 A-428-17 Citation: 2018 FCA 225 [ENGLISH TRANSLATION] CORAM: NADON J.A. DE MONTIGNY J.A. GLEASON J.A. Docket: A-426-17 BETWEEN: THE MINISTER OF NATIONAL REVENUE Appellant and ÉRIC LALANCETTE AND ARCI CABINET COMPTABLE INC. Respondents Docket: A-427-17 BETWEEN: THE MINISTER OF NATIONAL REVENUE Appellant and DANNY ALLAIRE AND ARCI CABINET COMPTABLE INC. Respondents Docket: A-428-17 BETWEEN: THE MINISTER OF NATIONAL REVENUE Appellant and CHRISTIAN MARTEL AND ARCI CABINET COMPTABLE INC. Respondents Heard at Montreal, Quebec, on December 10, 2018. Judgment delivered from the bench at Montreal, Quebec, on December 10, 2018. REASONS FOR JUDGMENT BY: THE COURT Date: 20181210 Dockets: A-426-17 A-427-17 A-428-17 Citation: 2018 FCA 225 CORAM: NADON J.A. DE MONTIGNY J.A. GLEASON J.A. Docket: A-426-17 BETWEEN: THE MINISTER OF NATIONAL REVENUE Appellant and ÉRIC LALANCETTE AND ARCI CABINET COMPTABLE INC. Respondents Docket: A-427-17 BETWEEN: THE MINISTER OF NATIONAL REVENUE Appellant and DANNY ALLAIRE AND ARCI CABINET COMPTABLE INC. Respondents Docket: A-428-17 BETWEEN: THE MINISTER OF NATIONAL REVENUE Appellant and CHRISTIAN MARTEL AND ARCI CABINET COMPTABLE INC. Respondents REASONS FOR JUDGMENT OF THE COURT (Delivered from the bench at Montreal, Quebec, on December 10, 2018.) [1] Notwithstanding Mr. Petit’s very able arguments, we are of the opinion that there is no reason to intervene. [2] Even accepting that the Tax Court of Canada (the TCC) erred in respect of the test applicable to the concept of non-arm’s length, we are not satisfied that the conclusion reached by the TCC, in light of the particular facts of the case, is erroneous. [3] Our decision to dismiss the appeal must not be interpreted as an endorsement of the TCC’s analysis, especially regarding the test applicable to determining the existence of a non‑arm’s length relationship. [4] Given that the respondents did not participate in the appeal and that they defer to the judgment of this Court, and given the importance of the issue raised by the appeal, we believe that it is desirable, under the circumstances, for the issue to be debated in another case. [5] For these reasons, the appeal will be dismissed without costs. “Marc Nadon” J.A. “Yves de Montigny” J.A. “Mary J.L. Gleason” J.A. Certified true translation Janine Anderson, Revisor FEDERAL COURT OF APPEAL SOLICITORS OF RECORD DOCKETS: A-426-17, A-427-17, A-428-17 STYLE OF CAUSE: THE MINISTER OF NATIONAL REVENUE v. ÉRIC LALANCETTE AND ARCI CABINET COMPTABLE INC. THE MINISTER OF NATIONAL REVENUE v. DANNY ALLAIRE AND ARCI CABINET COMPTABLE INC. THE MINISTER OF NATIONAL REVENUE v. CHRISTIAN MARTEL AND ARCI CABINET COMPTABLE INC. PLACE OF HEARING: MontrEal, QuEbec DATE OF HEARING: DECEMBER 10, 2018 REASONS FOR JUDGMENT OF THE COURT BY: NADON J.A DE MONTIGNY J.A. GLEASON J.A. DELIVERED FROM THE BENCH BY: THE COURT APPEARANCES: Simon Petit FOR THE appeLlant SOLICITORS OF RECORD: Nathalie G. Drouin Deputy Attorney General of Canada FOR THE appeLlant