Walsh,
J:—This
concerns
a
garnishee
order
to
show
cause
applied
for
by
the
solicitor
for
Her
Majesty
the
Queen
directed
to
the
Royal
Trust
Company,
630
Dorchester
Boulevard
West,
Montreal,
to
attach
the
amount
of
approximately
$10,665.49
deposited
in
registered
retirement
plan
number
10-242180000
in
partial
satisfaction
of
the
amount
of
$183,118.68
due
and
unpaid
at
the
time
of
the
motion
with
additional
interest
as
prescribed
by
subsection
161(1)
of
the
Income
Tax
Act
on
the
sum
of
$111,669.10
from
January
25,
1978
as
appears
from
a
certificate
having
the
same
force
as
a
judgment
registered
against
the
said
Stephen
Gero
on
February
9,
1978.
A
Similar
garnishment
is
sought
against
the
Farmers
and
Merchants
Trust
Co,
1450
St
Catherine
Street
West,
Montreal
for
the
amount
of
$4,735
deposited
in
registered
retirement
plan
No
07-05516.
Neither
garnishee
appeared
to
contest
the
seizures
although
duly
served.
Nothing
in
section
146
of
the
Income
Tax
Act
(RSC
1970-71-72
c
63)
specifically
provides
that
payments
made
into
a
registered
retirement
plan
shall
be
unseizeable.
In
the
recent
and
as
yet
unreported
Supreme
Court
case
of
Gerald
Robitaille
v
Marie-Jeanne
Hins-Dion
and
New
York
Life
Insurance
Company,
a
judgment
dated
October
26,
1978,
concerning
the
claim
of
a
trustee
in
bankruptcy
to
the
proceeds
of
a
life
insurance
policy
on
the
life
of
respondent’s
husband
which
it
was
contended
were
unseizeable,
Pigeon,
J
in
rendering
the
judgment
of
the
Court
stated
(translated):
In
effect
it
is
clearly
evident
that
one
cannot
by
a
contract
shelter
his
assets
from
seizure
by
his
creditors
unless
as
a
result
of
a
special
disposition
of
law
such
as
is
found
in
the
Supplementary
Pension
Plan
Act
(SQ
1965
c
25,
s
31).
Thus
it
is
perfectly
clear
that
one
cannot
in
making
a
bank
deposit
stipulate
that
it
is
unseizable.
The
Saskatchewan
case
of
Re
Lifshen,
12
Canadian
Bankruptcy
Reports
25
held
that
“A
registered
retirement
savings
plan
has
certain
tax
deferral
benefits
but
that
does
not
make
it
other
than
‘property’,
nor
does
the
fact
that
it
may
provide
periodic
payments
to
the
owner
commencing
at
a
future
date
under
some
arrangement
selected
by
him
or,
failing
a
selection
by
him,
by
the
plan
trustee.
A
registered
retirement
savings
plan
is
in
effect
a
trust
for
the
handling
of
moneys
belonging
to
the
bankrupt”.
It
was
held
to
be
vested
in
the
trustee
and
did
not
re-vest
in
the
bankrupt
following
his
discharge.
It
is
of
some
interest
to
note
that
Article
553(7)
of
the
Quebec
Code
of
Civil
Procedure
exempts
from
seizure
“Pensions
granted
to
employees
out
of
retiring
or
pension
funds,
as
well
as
the
instalments
paid
or
to
be
paid
to
form
such
funds.”
It
is
evident
that
this
applies
only
to
pensions
of
an
employee,
and
not
to
a
voluntary
Retirement
Savings
Plan
established
by
an
individual
for
himself.
Although
he
has
the
option
of
withdrawing
the
funds
from
time
to
time
on
paying
income
tax
on
the
withdrawals
in
the
year
when
they
are
made,
or
converting
the
deposits
to
a
pension
at
any
time
not
later
than
attaining
the
age
of
71,
and
hence
the
use
of
the
funds
are
subject
to
his
control,
this
does
not
mean
that
they
are
sheltered
from
seizure
by
his
creditors,
in
the
absence
of
a
special
provision
to
this
effect.
They
resemble
demand
bank
deposits
made
by
him
which
are
undoubtedly
seizeable.
On
a
strict
interpretation
of
Rule
2300
of
the
the
Rules
of
this
Court
it
is
arguable
that
these
sums
are
not
debts
“owing
or
accruing”
to
the
judgment
debtor
unless
and
until
he
requests
the
trust
companies
to
make
payment
to
him,
but
it
would
be
contrary
to
the
whole
principle
of
garnishment
proceedings
to
adopt
such
an
interpretation
and
hence
provide
a
means
for
an
individual
to
shelter
his
assets
from
seizure
by
his
creditors.
Whether
the
debtor
is
liable
for
income
tax
on
the
amounts
withdrawn
as
the
result
of
the
seizure
is
another
question.
In
the
event
that
the
seizing
creditor
were
not
the
same
Minister
of
National
Revenue
the
issue
might
well
arise
as
to
the
priority
of
the
Minister
for
income
tax
due
on
the
amounts
withdrawn
as
a
result
of
the
seizure,
leaving
only
the
balance
for
the
seizing
creditor
but
that
is
not
an
issue
which
needs
to
be
decided
here.
Order
The
garnishee
orders
are
maintained
and
the
Royal
Trust
Company
and
the
Farmers
and
Merchants
Trust
Co
are
respectively
ordered
to
pay
to
Her
Majesty
the
Queen
the
sums
due
by
them
to
Stephen
Gero
by
virtue
of
his
deposits
in
their
respective
registered
retirement
plans
Nos
10-242180000
and
07-05516
or
so
much
thereof
as
may
be
sufficient
to
satisfy
the
certificate
registered
on
February
9,
1978,
together
with
the
costs
of
the
garnishee
proceedings.
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