Date: 20040810
Docket: T-2195-03
Citation: 2004 FC 1096
Ottawa, Ontario, this 10th day of August, 2004
PRESENT: THE HONOURABLE MR. JUSTICE JOHN A. O'KEEFE
BETWEEN:
SCOTT SLIPP NISSAN LIMITED
Applicant
- and -
ATTORNEY GENERAL OF CANADA
Respondent
REASONS FOR ORDER AND ORDER
O'KEEFE J.
[1] This is a motion by the respondent, the Attorney General of Canada, for:
1. An order dismissing the application because the Court has no jurisdiction where an appeal is available;
2. In the alternative, an order pursuant to Rules 3, 4, 54 and 221 of the Federal Court Rules, 1998, S.O.R./98-106, or pursuant to the Court's jurisdiction over its own process striking out or dismissing the application; and
3. If the above relief is not granted, an order pursuant to Rules 8(3) and 307, extending the time for filing of the respondent's affidavits to thirty days from the time of the Court's order disposing of this motion.
[2] The application sought to be dismissed is the judicial review application filed by the applicant, Scott Slipp Nissan Limited ("SSNL"), in respect of a decision of an officer of the Canada Customs and Revenue Agency ("CCRA"), as it was then named, reflected in a letter dated October 24, 2003. CCRA refused full disclosure of documentation requested by the applicant in accordance with its "Appeals Renewal Initiative" protocol.
[3] SSNL, the applicant in the underlying judicial review, was assessed by the CCRA under the Excise Tax Act, R.S.C. 1985, c. E-15, in May 2003.
[4] SSNL's lawyer requested "receipt of a copy of the complete audit file concerning these two HST assessments . . .", pursuant to CCRA's Appeals Renewal Initiative.
[5] In October 2003, SSNL received information from CCRA but certain third party information was removed or withheld altogether. In subsequent discussions with SSNL, CCRA adopted the position that although the missing information sought by SSNL was relevant to the May 2003 assessments, the provisions of the Excise Tax Act, supra, prevented disclosure of third party information.
[6] SSNL filed Notices of Objection to the two assessments. CCRA has not yet made a decision on SSNL's Notices of Objection, and SSNL has not appealed to the Tax Court of Canada to have the assessments vacated or a reassessment made.
Issue
[7] The Attorney General states the issue as follows:
The issue is whether the application ought to be struck out on the basis:
(a) That it is precluded by section 18.5 of the Federal Courts Act because an appeal lies to the Tax Court of Canada;
(b) That the Court ought not, in the exercise of its discretion, hear the application because an adequate, indeed, superior, alternative remedy is available to the applicant;
(c) That the Court ought not, in the exercise of its discretion, hear the application because it seeks a review of an interlocutory decision for which an adequate remedy is available to the applicant; and
(d) That it is bereft of any possibility of success because it seeks to apply the doctrine [of legitimate expectations] to defeat a statutory duty and seeks to apply the doctrine so as to fetter a discretion.
Relevant Statutory Provisions
[8] The relevant sections of the Excise Tax Act, supra, state:
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295(1) In this section
"authorized person" means a person who is engaged or employed, or who was formerly engaged or employed, by or on behalf of Her Majesty in right of Canada to assist in carrying out the provisions of this Act;
"business number" means the number (other than a Social Insurance Number) used by the Minister to identify
(a) a registrant for the purposes of this Part, or
(b) an applicant (other than an individual) for a rebate under this Part;
"confidential information" means information of any kind and in any form that relates to one or more persons and that is
(a) obtained by or on behalf of the Minister for the purposes of this Part, or
(b) prepared from information referred to in paragraph (a),
but does not include information that does not directly or indirectly reveal the identity of the person to whom it relates;
"court of appeal" has the meaning assigned by the definition of that expression in section 2 of the Criminal Code;
"official" means a person who is employed in the service of, who occupies a position of responsibility in the service of, or who is engaged by or on behalf of, Her Majesty in right of Canada or a province, or a person who was formerly so employed, who formerly occupied such a position or who formerly was so engaged.
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295. (1) Les définitions qui suivent s'appliquent au présent article.
« _personne autorisée_ » Personne engagée ou employée, ou précédemment engagée ou employée, par Sa Majesté du chef du Canada, ou en son nom, pour aider à l'application des dispositions de la présente loi.
« _numéro d'entreprise_ » Le numéro, sauf le numéro d'assurance sociale, utilisé par le ministre pour identifier:
a) un inscrit pour l'application de la présente partie;
b) une personne, sauf un particulier, qui demande un remboursement en vertu de la présente partie.
« _renseignement confidentiel_ » Renseignement de toute nature et sous toute forme concernant une ou plusieurs personnes et qui, selon le cas:
a) est obtenu par le ministre ou en son nom pour l'application de la présente partie;
b) est tiré d'un renseignement visé à l'alinéa a).
N'est pas un renseignement confidentiel le renseignement qui ne révèle pas, même indirectement, l'identité de la personne en cause.
« _cour d'appel_ » S'entend au sens de la définition de cette expression à l'article 2 du Code criminel.
« _fonctionnaire_ » Personne qui est ou a été employée par Sa Majesté du chef du Canada ou d'une province, qui occupe ou a occupé une fonction de responsabilité à son service ou qui est ou a été engagée par elle ou en son nom.
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(2) Except as authorized under this section, no official shall knowingly
(a) provide, or allow to be provided, to any person any confidential information;
(b) allow any person to have access to any confidential information; or
(c) use any confidential information other than in the course of the administration or enforcement of this Part.
(3) Notwithstanding any other Act of Parliament or other law, no official shall be required, in connection with any legal proceedings, to give or produce evidence relating to any confidential information.
(4) Subsections (2) and (3) do not apply in respect of
(a) criminal proceedings, either by indictment or on summary conviction, that have been commenced by the laying of an information or the preferring of an indictment, under an Act of Parliament; or
(b) any legal proceedings relating to the administration or enforcement of this Act, the Canada Pension Plan, the Employment Insurance Act, the Unemployment Insurance Act or any other Act of Parliament or law of a province that provides for the imposition of a tax or duty.
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(2) Sauf autorisation prévue au présent article, il est interdit à un fonctionnaire:
a) de fournir sciemment à quiconque un renseignement confidentiel ou d'en permettre sciemment la fourniture;
b) de permettre sciemment à quiconque d'avoir accès à un renseignement confidentiel;
c) d'utiliser sciemment un renseignement confidentiel en dehors du cadre de l'application ou de l'exécution de la présente partie.
(3) Malgré toute autre loi fédérale et toute règle de droit, nul fonctionnaire ne peut être requis, dans le cadre d'une procédure judiciaire, de témoigner, ou de produire quoi que ce soit, relativement à un renseignement confidentiel.
(4) Les paragraphes (2) et (3) ne s'appliquent:
a) ni aux poursuites criminelles, sur déclaration de culpabilité par procédure sommaire ou sur acte d'accusation, engagées par le dépôt d'une dénonciation ou d'un acte d'accusation, en vertu d'une loi fédérale;
b) ni aux procédures judiciaires ayant trait à l'application ou à l'exécution de la présente loi, du Régime de pensions du Canada, de la Loi sur l'assurance-emploi, de la Loi sur l'assurance-chômage ou de toute loi fédérale ou provinciale qui prévoit l'imposition ou la perception d'un impôt, d'une taxe ou d'un droit.
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(5) An official may
(a) provide such confidential information to any person as may reasonably be regarded as necessary for the purpose of the administration or enforcement of this Act, solely for that purpose;
(b) provide to a person confidential information that can reasonably be regarded as necessary for the purposes of determining any liability or obligation of the person or any refund, rebate or input tax credit to which the person is or may become entitled under this Act;
(c) provide, allow to be provided, or allow inspection of or access to any confidential information to or by
(i) any person, or any person within a class of persons, that the Minister may authorize, subject to such conditions as the Minister may specify, or
(ii) any person otherwise legally entitled thereto by reason of an Act of Parliament, solely for the purposes for which that person is entitled to the information;
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(5) Un fonctionnaire peut:
a) fournir à une personne un renseignement confidentiel qu'il est raisonnable de considérer comme nécessaire à l'application ou à l'exécution de la présente loi, mais uniquement à cette fin;
b) fournir à une personne un renseignement confidentiel qu'il est raisonnable de considérer comme nécessaire à la détermination de tout montant dont la personne est redevable ou du remboursement ou du crédit de taxe sur les intrants auquel elle a droit, ou pourrait avoir droit, en vertu de la présente loi;
c) fournir, ou permettre que soit fourni, un renseignement confidentiel soit à toute personne autorisée par le ministre ou faisant partie d'une catégorie de personnes ainsi autorisée, sous réserve de conditions précisées par le ministre, soit à toute personne qui y a par ailleurs légalement droit par l'effet d'une loi fédérale, ou lui en permettre l'examen ou l'accès, mais uniquement aux fins auxquelles elle y a droit;
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(d) provide confidential information
(i) to an official of the Department of Finance solely for the purposes of the formulation or evaluation of fiscal policy or for the purposes of an administration agreement, as defined in subsection 2(1) of the Federal-Provincial Fiscal Arrangements Act, entered into with an aboriginal government, as defined in that subsection, or for the purposes of an administration agreement, as defined in subsection 2(1) of the First Nations Goods and Services Tax Act,
(ii) to an official solely for the purpose of the initial implementation of a fiscal policy or for the purposes of the administration or enforcement of the Canada Pension Plan, the Employment Insurance Act, the Unemployment Insurance Act or an Act of Parliament that provides for the imposition or collection of a tax or duty or that provides that displays or indications of the price or consideration for property or services include tax under this Act,
(iii) to an official solely for the purposes of the administration or enforcement of a law of a province that provides for the imposition or collection of a tax or duty, that provides that displays or indications of the price or consideration for property or services include tax under this Act or that provides for reimbursements to persons of amounts paid or payable by the persons as or on account of tax under this Act,
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d) fournir un renseignement confidentiel:
(i) à un fonctionnaire du ministère des Finances, mais uniquement en vue de la formulation ou de l'évaluation de la politique fiscale ou pour les besoins d'un accord d'application, au sens du paragraphe 2(1) de la Loi sur les arrangements fiscaux entre le gouvernement fédéral et les provinces, conclu avec un gouvernement autochtone, au sens de ce paragraphe, ou pour les besoins d'un accord d'application, au sens du paragraphe 2(1) de la Loi sur la taxe sur les produits et services des premières nations,
(ii) à un fonctionnaire, mais uniquement en vue de la mise à exécution de la politique fiscale ou en vue de l'application ou de l'exécution du Régime de pensions du Canada, de la Loi sur l'assurance-emploi, de la Loi sur l'assurance-chômage ou d'une loi fédérale qui prévoit l'imposition ou la perception d'un impôt, d'une taxe ou d'un droit ou qui prévoit que les mentions du prix de biens ou de services, ou de la contrepartie relative à ceux-ci, comprennent la taxe prévue par la présente loi,
(iii) à un fonctionnaire, mais uniquement en vue de l'application ou de l'exécution d'une loi provinciale qui prévoit l'imposition ou la perception d'un impôt, d'une taxe ou d'un droit, qui prévoit que les mentions du prix ou de la contrepartie de biens ou de services comprennent la taxe prévue par la présente loi ou qui permet de rembourser à des personnes des sommes payées ou payables par elles au titre d'une taxe prévue par la présente loi,
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(iv) to an official of the government of a province solely for the purposes of the formulation or evaluation of fiscal policy,
(iv.1) to a person authorized by the council of a band listed in the schedule to the Budget Implementation Act, 2000 solely for the purposes of the formulation, evaluation or initial implementation of fiscal policy relating to a tax that the council of the band may impose under a by-law made under subsection 24(1) of that Act,
(iv.2) to a person authorized by the governing body of a first nation listed in the schedule to the First Nations Goods and Services Tax Act solely for the purposes of the formulation, evaluation or initial implementation of fiscal policy relating to a tax referred to in that Act,
(v) to an official of a department or agency of the Government of Canada or of a province as to the name, address, occupation, size or type of business of a person, solely for the purposes of enabling that department or agency to obtain statistical data for research and analysis,
(vi) to an official solely for the purposes of setting off, against any sum of money that may be due or payable by Her Majesty in right of Canada, a debt due to
(A) Her Majesty in right of Canada, or
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(iv) à un fonctionnaire provincial, mais uniquement en vue de la formulation ou de l'évaluation de la politique fiscale,
(iv.1) à une personne autorisée par le conseil d'une bande dont le nom figure à l'annexe de la Loi d'exécution du budget de 2000, mais uniquement en vue de la formulation, de l'évaluation et de la mise à exécution de la politique fiscale relative à une taxe que le conseil de la bande peut imposer par un règlement administratif pris en vertu du paragraphe 24(1) de cette loi,
(iv.2) à une personne autorisée par le corps dirigeant d'une première nation dont le nom figure à l'annexe de la Loi sur la taxe sur les produits et services des premières nations, mais uniquement en vue de la formulation, de l'évaluation ou de la mise à exécution de la politique fiscale relative à une taxe visée par cette loi,
(v) à un fonctionnaire d'un ministère ou organisme fédéral ou provincial, quant aux nom, adresse et profession d'une personne et à la taille et au genre de son entreprise, mais uniquement en vue de permettre à ce ministère ou à cet organisme de recueillir des données statistiques pour la recherche et l'analyse,
(vi) à un fonctionnaire, mais uniquement en vue de procéder, par voie de compensation, à la retenue, sur toute somme due par Sa Majesté du chef du Canada, de tout montant égal à une créance:
(A) soit de Sa Majesté du chef du Canada,
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(B) Her Majesty in right of a province on account of taxes payable to the province where an agreement exists between Canada and the province under which Canada is authorized to collect taxes on behalf of the province, or
(vii) to an official solely for the purposes of section 7.1 of the Federal-Provincial Fiscal Arrangements and Federal Post-secondary Education and Health Contributions Act;
(e) provide confidential information solely for the purposes of sections 23 to 25 of the Financial Administration Act;
(f) use confidential information to compile information in a form that does not directly or indirectly reveal the identity of the person to whom the information relates;
(g) use, or provide to any person, confidential information solely for a purpose relating to the supervision, evaluation or discipline of an authorized person by Her Majesty in right of Canada in respect of a period during which the authorized person was employed by or engaged by or on behalf of Her Majesty in right of Canada to assist in the administration or enforcement of this Act, to the extent that the information is relevant for that purpose;
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(B) soit de Sa Majesté du chef d'une province s'il s'agit de taxes ou d'impôts provinciaux visés par une entente entre le Canada et la province en vertu de laquelle le Canada est autorisé à percevoir les impôts ou taxes payables à la province,
(vii) à un fonctionnaire, mais uniquement pour l'application de l'article 7.1 de la Loi sur les arrangements fiscaux entre le gouvernement fédéral et les provinces et sur les contributions fédérales en matière d'enseignement postsecondaire et de santé;
e) fournir un renseignement confidentiel, mais uniquement pour l'application des articles 23 à 25 de la Loi sur la gestion des finances publiques;
f) utiliser un renseignement confidentiel en vue de compiler des renseignements sous une forme qui ne révèle pas, même indirectement, l'identité de la personne en cause;
g) utiliser ou fournir un renseignement confidentiel, mais uniquement à une fin liée à la surveillance ou à l'évaluation d'une personne autorisée, ou à des mesures disciplinaires prises à son endroit, par Sa Majesté du chef du Canada relativement à une période au cours de laquelle la personne autorisée était soit employée par Sa Majesté du chef du Canada, soit engagée par elle ou en son nom, pour aider à l'application ou à l'exécution de la présente loi, dans la mesure où le renseignement a rapport à cette fin;
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(h) provide access to records of confidential information to the National Archivist of Canada or a person acting on behalf of or under the direction of the National Archivist of Canada, solely for the purposes of section 5 of the National Archives of Canada Act, and transfer such records to the care and control of such persons solely for the purposes of section 6 of that Act;
(i) use confidential information relating to a person to provide information to that person;
(j) provide the business number, name, address, telephone number and facsimile number of a holder of a business number to an official of a department or agency of the Government of Canada or of a province solely for the purpose of the administration or enforcement of an Act of Parliament or a law of a province, if the holder of the business number is required by that Act or that law to provide the information (other than the business number) to the department or agency;
(k) provide confidential information to any person, solely for the purposes of the administration or enforcement of a law of a province that provides for workers' compensation benefits; or
(l) provide confidential information to a police officer (within the meaning assigned by subsection 462.48(17) of the Criminal Code) solely for the purpose of investigating whether an offence has been committed under the Criminal Code, or the laying of an information or the preferring of an indictment, if
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h) donner accès à des documents renfermant des renseignements confidentiels à l'archiviste national du Canada ou à une personne agissant en son nom ou sur son ordre, mais uniquement pour l'application de l'article 5 de la Loi sur les Archives nationales du Canada, et transférer de tels documents sous la garde et le contrôle de ces personnes, mais uniquement pour l'application de l'article 6 de cette loi;
i) utiliser un renseignement confidentiel concernant une personne en vue de lui fournir un renseignement;
j) fournir, à un fonctionnaire d'un ministère ou organisme fédéral ou provincial, le numéro d'entreprise, le nom, l'adresse et les numéros de téléphone et de télécopieur d'un détenteur d'un numéro d'entreprise, mais uniquement en vue de l'application ou de l'exécution d'une loi fédérale ou provinciale, à condition que le détenteur du numéro d'entreprise soit tenu par cette loi de fournir l'information, sauf le numéro d'entreprise, au ministère ou à l'organisme;
k) fournir à une personne un renseignement confidentiel, mais uniquement en vue de l'application ou de l'exécution d'une loi provinciale qui prévoit l'indemnisation des accidents du travail;
l) fournir un renseignement confidentiel à un policier, au sens du paragraphe 462.48(17) du Code criminel, mais uniquement en vue de déterminer si une infraction visée à cette loi a été commise ou en vue du dépôt d'une dénonciation ou d'un acte d'accusation, si, à la fois_:
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(i) such information can reasonably be regarded as being relevant for the purpose of ascertaining the circumstances in which an offence under the Criminal Code may have been committed, or the identity of the person or persons who may have committed an offence, with respect to an official, or with respect to any person related to that official,
(ii) the official was or is engaged in the administration or enforcement of this Part, and
(iii) the offence can reasonably be considered to be related to that administration or enforcement.
(7) An order or direction that is made in the course of or in connection with any legal proceedings and that requires an official to give or produce evidence relating to any confidential information may, by notice served on all interested parties, be appealed forthwith by the Minister or by the person against whom the order or direction is made to
(a) the court of appeal of the province in which the order or direction is made, in the case of an order or direction made by a court or other tribunal established under the laws of the province, whether that court or tribunal is exercising a jurisdiction conferred by the laws of Canada; or
(b) the Federal Court of Appeal, in the case of an order or direction made by a court or other tribunal established under the laws of Canada.
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(i) il est raisonnable de considérer que le renseignement est nécessaire pour confirmer les circonstances dans lesquelles une infraction au Code criminel peut avoir été commise, ou l'identité de la ou des personnes pouvant avoir commis une infraction, à l'égard d'un fonctionnaire ou de toute personne qui lui est liée,
(ii) le fonctionnaire est ou était chargé de l'application ou de l'exécution de la présente partie,
(iii) il est raisonnable de considérer que l'infraction est liée à cette application ou exécution.
(7) Le ministre ou la personne contre laquelle une ordonnance est rendue, ou à l'égard de laquelle une directive est donnée, dans le cadre ou à l'occasion d'une procédure judiciaire enjoignant à un fonctionnaire de témoigner, ou de produire quoi que ce soit, relativement à un renseignement confidentiel peut sans délai, par avis signifié aux parties intéressées, interjeter appel de l'ordonnance ou de la directive devant:
a) la cour d'appel de la province dans laquelle l'ordonnance est rendue ou la directive donnée, s'il s'agit d'une ordonnance ou d'une directive émanant d'une cour ou d'un autre tribunal établi en application des lois de la province, que ce tribunal exerce ou non une compétence conférée par les lois fédérales;
b) la Cour d'appel fédérale, s'il s'agit d'une ordonnance ou d'une directive émanant d'une cour ou d'un autre tribunal établi en application des lois fédérales.
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(9) An appeal instituted under subsection (7) shall stay the operation of the order or direction appealed from until judgment is pronounced.
301. (1) Where an assessment is issued to a person in respect of net tax for a reporting period of the person, an amount (other than net tax) that became payable or remittable by the person during a reporting period of the person or a rebate of an amount paid or remitted by the person during a reporting period of the person, for the purposes of this section, the person is a "specified person" in respect of the assessment or a notice of objection to the assessment if
(a) the person was a listed financial institution described in any of subparagraphs 149(1)(a)(i) to (x) during that reporting period; or
(b) the person was not a charity during that reporting period and the person's threshold amounts, determined in accordance with subsection 249(1), exceed_$6 million for both the person's fiscal year that includes the reporting period and the person's previous fiscal year.
(3) On receipt of a notice of objection, the Minister shall, with all due dispatch, reconsider the assessment and vacate or confirm the assessment or make a reassessment.
(4) Where, in a notice of objection, a person who wishes to appeal directly to the Tax Court requests the Minister not to reconsider the assessment objected to, the Minister may confirm the assessment without reconsideration.
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(9) L'application de l'ordonnance ou de la directive objet d'un appel interjeté en application du paragraphe (7) est différée jusqu'au prononcé du jugement.
301. (1) Pour l'application du présent article, la personne à l'égard de laquelle est établie une cotisation au titre de la taxe nette pour sa période de déclaration, d'un montant (autre que la taxe nette) qui est devenu à payer ou à verser par elle au cours d'une telle période ou du remboursement d'un montant qu'elle a payé ou versé au cours d'une telle période est une personne déterminée relativement à la cotisation ou à un avis d'opposition à celle-ci si, selon le cas:
a) elle est une institution financière désignée visée à l'un des sous-alinéas 149(1)a)(i) à (x) au cours de la période en question;
b) elle n'était pas un organisme de bienfaisance au cours de la période en question et le montant déterminant qui lui est applicable, déterminé en conformité avec le paragraphe 249(1), dépasse 6 000 000_$ pour son exercice qui comprend cette période ainsi que pour son exercice précédent.
(3) Sur réception d'un avis d'opposition, le ministre doit, avec diligence, examiner la cotisation de nouveau et l'annuler ou la confirmer ou établir une nouvelle cotisation.
(4) Le ministre peut confirmer une cotisation sans l'examiner de nouveau sur demande de la personne qui lui fait part, dans son avis d'opposition, de son intention d'en appeler directement à la Cour canadienne de l'impôt.
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302. Where a person files a notice of objection to an assessment and the Minister sends to the person a notice of a reassessment or an additional assessment, in respect of any matter dealt with in the notice of objection, the person may, within ninety days after the day the notice of reassessment or additional assessment was sent by the Minister,
(a) appeal therefrom to the Tax Court; or
(b) where an appeal has already been instituted in respect of the matter, amend the appeal by joining thereto an appeal in respect of the reassessment or additional assessment in such manner and on such terms as the Tax Court directs.
306. A person who has filed a notice of objection to an assessment under this Subdivision may appeal to the Tax Court to have the assessment vacated or a reassessment made after either
(a) the Minister has confirmed the assessment or has reassessed, or
(b) one hundred and eighty days have elapsed after the filing of the notice of objection and the Minister has not notified the person that the Minister has vacated or confirmed the assessment or has reassessed,
but no appeal under this section may be instituted after the expiration of ninety days after the day notice is sent to the person under section 301 that the Minister has confirmed the assessment or has reassessed.
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302. La personne, ayant présenté un avis d'opposition à une cotisation, à qui le ministre a envoyé un avis de nouvelle cotisation ou de cotisation supplémentaire concernant l'objet de l'avis d'opposition peut, dans les 90 jours suivant cet envoi:
a) interjeter appel devant la Cour canadienne de l'impôt;
b) si un appel a déjà été interjeté, modifier cet appel en y joignant un appel concernant la nouvelle cotisation ou la cotisation supplémentaire, en la forme et selon les modalités fixées par cette cour.
306. La personne qui a produit un avis d'opposition à une cotisation aux termes de la présente sous-section peut interjeter appel à la Cour canadienne de l'impôt pour faire annuler la cotisation ou en faire établir une nouvelle lorsque, selon le cas:
a) la cotisation est confirmée par le ministre ou une nouvelle cotisation est établie;
b) un délai de 180 jours suivant la production de l'avis est expiré sans que le ministre n'ait notifié la personne du fait qu'il a annulé ou confirmé la cotisation ou procédé à une nouvelle cotisation.
Toutefois, nul appel ne peut être interjeté après l'expiration d'un délai de 90 jours suivant l'envoi à la personne, aux termes de l'article 301, d'un avis portant que le ministre a confirmé la cotisation ou procédé à une nouvelle cotisation.
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309. (1) The Tax Court may dispose of an appeal from an assessment by
(a) dismissing it; or
(b) allowing it and
(i) vacating the assessment, or
(ii) referring the assessment back to the Minister for reconsideration and reassessment.
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309. (1) La Cour canadienne de l'impôt peut statuer sur un appel concernant une cotisation en le rejetant ou en l'accueillant. Dans ce dernier cas, elle peut annuler la cotisation ou la renvoyer au ministre pour nouvel examen et nouvelle cotisation.
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[9] The Federal Courts Act, R.S.C. 1985, c. F-7, states in part as follows:
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18.5 Despite sections 18 and 18.1, if an Act of Parliament expressly provides for an appeal to the Federal Court, the Federal Court of Appeal, the Supreme Court of Canada, the Court Martial Appeal Court, the Tax Court of Canada, the Governor in Council or the Treasury Board from a decision or an order of a federal board, commission or other tribunal made by or in the course of proceedings before that board, commission or tribunal, that decision or order is not, to the extent that it may be so appealed, subject to review or to be restrained, prohibited, removed, set aside or otherwise dealt with, except in accordance with that Act.
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18.5 Par dérogation aux articles 18 et 18.1, lorsqu'une loi fédérale prévoit expressément qu'il peut être interjeté appel, devant la Cour fédérale, la Cour d'appel fédérale, la Cour suprême du Canada, la Cour d'appel de la cour martiale, la Cour canadienne de l'impôt, le gouverneur en conseil ou le Conseil du Trésor, d'une décision ou d'une ordonnance d'un office fédéral, rendue à tout stade des procédures, cette décision ou cette ordonnance ne peut, dans la mesure où elle est susceptible d'un tel appel, faire l'objet de contrôle, de restriction, de prohibition, d'évocation, d'annulation ni d'aucune autre intervention, sauf en conformité avec cette loi.
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Analysis and Decision
[10] Issue - (a)
Is this application precluded by section 18.5 of the Federal Courts Act, supra, because an appeal lies to the Tax Court of Canada?
The Attorney General argues that the Court lacks jurisdiction over this application
because SSNL has a right of appeal to the Tax Court of Canada. Since the Minister of National Revenue has not dealt with SSNL's Notices of Objection within the 180 day limit set out in section 306 of the Excise Tax Act, supra, the Attorney General submits that SSNL's proper remedy is to appeal to the Tax Court of Canada to vacate the May 2003 assessments or have a reassessment made. It is further argued that any dispute about documentary discovery must be addressed through the Tax Court of Canada's process and review by this Court is precluded by section 18.5 of the Federal Courts Act, supra.
[11] SSNL submits that on a straightforward and unlaboured interpretation, subsection 18.5 only precludes judicial review of a government decision where a statutory appeal right exists with respect to that decision. Since SSNL seeks to review CCRA's refusal to disclose third party information, not the May 2003 assessments directly, it is submitted that subsection 18.5 does not deprive this Court of jurisdiction. SSNL argues that full disclosure as provided for under section 295 of the Excise Tax Act is essential for it to be able to meaningfully file and pursue its Notices of Objection and that it should not be forced to proceed to the Tax Court of Canada without the information it seeks.
[12] The law relating to the jurisdictional interplay between applications for judicial review in this Court and proceedings in the Tax Court of Canada were recently reviewed by Prothonotary Morneau in Beaudry v. Canada (Customs and Revenue Agency) (2001), 215 F.T.R. 18, 2001 FCT 1347 at paragraph 16 to 21:
In Optical Recording Corp. v. Canada, supra, the Federal Court of Appeal relied in particular on s. 152(8) of the Income Tax Act as a basis for concluding that the Federal Court had no jurisdiction to hear an originating motion made pursuant to s. 18 of the Federal Court Act and asking inter alia that a tax assessment be vacated.
It is true that s. 18(1) of the Federal Court Act gives the Federal Court Trial Division exclusive jurisdiction over the traditional forms of judicial review involving the federal government. At the same time, s. 18.1 of the Federal Court Act allows an application for judicial review to be made against a decision by a "federal board, commission or other tribunal".
However, s. 18.5 of the Federal Court Act states that where appeal procedures are provided by law they must be given priority, and to this end excludes judicial review where the law provides a specific right of appeal.
Relying on s. 18.5 (and formerly s. 29) of the Federal Court Act and on s. 152(8) of the Income Tax Act, the courts have thus consistently dismissed for lack of jurisdiction proceedings for judicial review which ultimately seek to have tax assessments vacated or reviewed. (See Albion Transportation Research Corp. v. Canada (T.D.), [1998] 1 F.C. 78; Greene v. M.N.R., 95 D.T.C. 5684 (F.C.A.); Optical Recording Corp. v. Canada, [1991] 1 F.C. 309 (F.C.A.); and M.N.R. v. Parsons, [1984] 2 F.C. 331 (F.C.A.)).
Parliament has thus adopted a special and unified procedure for the revision and cancellation of tax assessments. It has legislated by exclusion, first by removing any remedy other than objection and appeal in this area, then by giving the Tax Court of Canada exclusive jurisdiction over appeals brought from tax assessments, and finally by excluding judicial review by the Federal Court where a right of appeal exists. (See Tax Court of Canada Act, R.S.C. 1985, c. T-2, s. 12; Income Tax Act, R.S.C. 1985 (5th Supp.), c. 1, ss. 152(8), 169 and 171; and Federal Court Act, ss. 18(1) and 18.5.)
In my opinion, therefore, it is quite clear that the Federal Court is consequently deprived of any jurisdiction to rule on the revision and vacating of the tax assessments made against the plaintiffs for the various taxation years....
[13] Although this Court has no jurisdiction over proceedings framed as judicial review that ultimately seek to have tax assessments vacated or reviewed, this application is not a disguised attempt by SSNL to challenge its assessments. Rather, SSNL is challenging CCRA's refusal to provide complete disclosure of its audit file, which SSNL argues is needed to file and pursue meaningful Notices of Objection. While not expressing an opinion on the propriety of CCRA's non-disclosure of third party information under the Excise Tax Act, supra, I am of the view that SSNL should be provided a forum to argue that CCRA's decision was unlawful. This Court is a forum that is available to SSNL.
[14] I am not satisfied that this Court lacks jurisdiction to hear this judicial review application by reason of section 18.5 of the Federal Courts Act, supra. The decision challenged by SSNL is CCRA's incomplete disclosure of its audit file, not the substance of the May 2003 assessments. Section 18.5 precludes judicial review in this Court of a decision "to the extent that it may be so appealed" (to use the language of the statute) to, inter alia, the Tax Court of Canada. The Excise Tax Act, supra, does not expressly provide for an appeal of the Minister's disclosure decision to the Tax Court of Canada, nor is the non-disclosure decision so intertwined with SSNL's assessments that any challenge to the disclosure decision is in substance an attack of the assessments.
[15] It is clear that I disagree with the Attorney General's position that documentary disclosure must be obtained by proceeding on appeal to the Tax Court of Canada. The Attorney General's view of the statutory scheme would force taxpayers to proceed with a potentially uninformed Notice of Objection process which would have little or no chance of success, simply to be able to proceed to the Tax Court of Canada's documentary disclosure procedures. In my view, to adopt such an interpretation of the statutory scheme would detract from the intended purpose of the Notice of Objection stage, which is to provide a taxpayer with a meaningful opportunity to persuade the Minister of National Revenue that its assessment should be vacated or a reassessment made. The Notice of Objection stage was not meant to be uninformed or de facto forcibly waived for parties who dispute the sufficiency of CCRA's information disclosure.
[16] I am of the view that the Federal Court of Appeal supported this position in Webster v. Canada, 2003 FCA 388, [2003] F.C.J. No. 1569 (QL), leave to appeal to S.C.C. refused, [2003] S.C.C.A. No. 546 (QL). In that case, Mr. Webster had filed a Notice of Objection under the Income Tax Act, R.S.C. 1985 (5th supp.), c. 1. The Minister confirmed CCRA's assessments and Mr. Webster filed an appeal to the Tax Court of Canada. During pre-trial discovery under the Tax Court of Canada Rules (General Procedure), S.O.R./90-688a, Mr. Webster learned that the appeals officer who considered his Notice of Objection had reviewed information that was blacked out on Mr. Webster's set of documents. Arguing breach of natural justice, Mr. Webster sought to have the decision to confirm his assessment quashed. Sharlow J.A., for the Court of Appeal, held that the Federal Court had no jurisdiction to quash a decision by the Minister to confirm assessments under the Income Tax Act, supra, and commented at paragraph 20:
Counsel for Mr. Webster argued that if the Federal Court is not permitted to consider Mr. Webster's application for judicial review, he will have been deprived of a fair hearing of his objection. It is perhaps more accurate to say that once the objection process was complete, Mr. Webster was deprived of an opportunity to argue in the Federal Court, through a judicial review application, that the Minister has an obligation to conduct the objection process fairly, and that the process followed in his particular case was unfair. However, Parliament has spoken on this matter. Whatever flaws there may have been in the objection process in Mr. Webster's case, it resulted in a decision that can be challenged in only one way, and that is by an appeal to the Tax Court. [Emphasis added]
[17] In this case, the Minister has made no decision on SSNL's Notices of Objection. This application for judicial review was filed before SSNL's right to appeal to the Tax Court of Canada arose and therefore, before (in the words of Sharlow J.A.) "the objection process was complete".
[18] By ruling that as soon as a right of appeal to the Tax Court of Canada arises, a taxpayer is obliged to pursue that appeal instead of seeking further disclosure by means of judicial review could allow the Minister to by-pass the very purpose of the objection stage of the scheme. Furthermore, without commenting on the extent of disclosure mandated by subsection 295(5) of the Excise Tax Act, supra, obliging a taxpayer to forfeit a meaningful objection process could also frustrate the legislation's disclosure provisions. I am therefore satisfied that this Court has jurisdiction over this case.
[19] Issue - (b)
Whether the Court ought not, in the exercise of its discretion, hear the application because an adequate, indeed, superior, alternative remedy is available to the applicant.
The Attorney General submits that an appeal to the Tax Court of Canada is an alternative or superior remedy available to SSNL. It seems to me that one of the reasons for providing for information disclosure under paragraphs 295(5)(a) and (b) of the Excise Tax Act, supra, was to allow for a meaningful objection process where the taxpayer knew the reasons for its assessment and to allow for a meaningful attempt to settle a disputed assessment without recourse to the Tax Court of Canada. In this case, the Minister's officials have stated that SSNL's assessments are based in part on third party information. Whether or not the requested documentation will be released will depend on the outcome of the judicial review application. I am of the opinion that proceeding directly to the Tax Court of Canada would not be an alternative remedy as it would deprive the applicant of its right to a meaningful objection process as contemplated by the legislation.
[20] Issue - (c)
Whether the Court ought not, in the exercise of its discretion, hear the application because it seeks a review of an interlocutory decision for which an adequate remedy is available to the applicant.
As I have indicated earlier in this decision, the objection process should be carried out in a meaningful or fair manner. If during the process, the applicant is denied access to third party information, it seems to me that the applicant ought to be able to question the process by means of a judicial review application in this Court. If the applicant is denied this opportunity and required to wait and appeal the Minister's decision to the Tax Court of Canada, the applicant will have lost the opportunity to question the process whose purpose is to attempt, by disclosure in the appropriate cases, to effect a settlement of the assessments without having to proceed to an appeal. In the context of the issues raised by this application, I see the objection process as being separate from the proceedings to be initiated in the Tax Court of Canada by way of an appeal. In this sense, the decision being judicially reviewed is not, in the true sense, interlocutory.
[21] Issue - (d)
Whether this application is bereft of any possibility of success because it seeks to apply the doctrine of legitimate expectations to defeat a statutory duty and seeks to apply the doctrine so as to fetter a discretion.
The Attorney General argues that SSNL's position that provisions of CCRA's Appeals Renewal Initiative create positive disclosure obligations is an impermissible attempt to apply the legitimate expectations doctrine to defeat CCRA's obligation to keep information confidential and to fetter CCRA's discretion to disclose information. On this basis, the Attorney General states that SSNL's underlying application for judicial review is bereft of any possibility of success and should, therefore, be struck. I cannot agree.
[22] The extent of CCRA's disclosure obligations and the appropriate interpretation of the Excise Tax Act's, confidentiality provisions in light of the competing interests at stake, the Appeals Renewal Initiative, and the facts of this case is an open question to be resolved by the judge hearing this judicial review application. The merits do not warrant the application being struck at this stage of the proceedings.
[23] The Attorney General of Canada's motion for the relief requested in paragraphs 1 and 2 of the notice of motion is dismissed.
[24] In the alternative, the Attorney General requested an order pursuant to Rules 8(3) and 307 of the Federal Court Rules, 1998, supra, extending the time for filing its affidavits to thirty days from the time of the Court's order disposing of the motion. At the hearing of the motion, counsel for the Attorney General indicated that ten days from the date of my order would be a sufficient extension of time for filing its affidavits, which I so order.
[25] The applicant requested that the motion to strike be dismissed with costs in any event of the cause. I will award the applicant its costs of the motion.
ORDER
[26] IT IS ORDERED that:
1. The Attorney General of Canada's motion for an order dismissing the application because the Court has no jurisdiction where an appeal is available and in the alternative, an order pursuant to Rules 3, 4, 54 and 221 of the Federal Court Rules, 1998 or pursuant to the Court's jurisdiction over its own process striking out or dismissing the application is dismissed.
2. The Attorney General of Canada shall have ten days from the date of this order to file the respondent's affidavits.
3. The applicant, Scott Slipp Nissan Limited shall have its costs of this motion.
"John A. O'Keefe"
J.F.C.
Ottawa, Ontario
August 10, 2004
FEDERAL COURT OF CANADA
TRIAL DIVISION
NAMES OF COUNSEL AND SOLICITORS OF RECORD
DOCKET: T-2195-03
STYLE OF CAUSE: SCOTT SLIPP NISSAN LIMITED
- and -
ATTORNEY GENERAL OF CANADA
PLACE OF HEARING: Halifax, Nova Scotia
DATE OF HEARING: February 18, 2004
REASONS FOR ORDER AND ORDER OF O'KEEFE J.
DATED: August 10, 2004
APPEARANCES:
Bruce S. Russell
Karl Seidenz
FOR APPLICANT
John J. Ashley
FOR RESPONDENT
SOLICITORS OF RECORD:
McInnes Cooper
Halifax, Nova Scotia
FOR APPLICANT
Morris Rosenberg, Q.C.
Deputy Attorney General of Canada
FOR RESPONDENT
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