INCOME TAX |
Practice |
Webster v. M.N.R.
T-2299-00
2002 FCT 1282, Heneghan J.
10/12/02
13 pp.
Enforcement--Judicial review seeking to prevent Minister from pursuing collections actions--Applicant denied deductions relative to oil and gas investments--Filing notices of objection--Subsequently signing agreement with Minister to hold objections in abeyance pending delivery of judgment in similar "test" case (Global Communications v. Canada, [1997] 3 C.T.C. 2499 (T.C.C.); (1999), 99 DTC 5377 (F.C.A.))--Upon disposition of test case, Minister issuing notice of confirmation, stating intention to proceed with collections--Applicant filing notice of appeal to Tax Court of Canada--Applicant arguing Minister not entitled to pursue collections while appeal pending--Submitting Income Tax Act, s. 225.1(5) not overriding s. 225.1(3) stay of collections when taxpayer appeals assessment to Tax Court of Canada, because for s. 225.1(5) to operate, issues before Tax Court must be same or substantially same as test case--Applicant arguing issues raised in appeal differ from those in test case-- Whether s. 225.1(5) overrides statutory stay against collections by Minister when appeal filed to Tax Court--Subsection must be interpreted in context of whole section--S. 225.1(5) giving taxpayer choice of grounds to defer collections--Taxpayer can seek stay in relation to notice of objection or notice of appeal to Tax Court but not both-- Purpose of subsection to provide taxpayer with benefit of hearing on merits of same or substantially same merits without incurring costs--Applicant entering into agreement with Minister to be bound by decision in other case--Similarity of cases matter for agreement between applicant and Minister-- Test of "similarity" subjective--Application dismissed-- Income Tax Act, R.S.C., 1985 (5th Supp.), c.1, s. 225.1 (as am. by S.C. 1994, c. 7, Sch. II, s. 184; Sch. VIII, s. 131; 1998, c. 19, s. 225).