Glenmaroon Holdings (1986) Ltd. v. Canada, docket A-929-96

Date: 19990323

Dossier: A-929-96

Coram :      DÉCARY J.A.

         LÉTOURNEAU J.A.

         NOËL J.A.

Between :      GLENMAROON HOLDINGS (1986) LTD.

     Appellant

     AND:

     HER MAJESTY THE QUEEN

     Respondent

     Heard at Montreal, Quebec on Tuesday, March 23, 1999

Judgment delivered from the Bench at Montreal, Quebec

on Tuesday, March 23, 1999

REASONS FOR JUDGMENT OF THE COURT BY:      NOËL J.A.

Date: 19990323

Docket: A-929-96

CORAM:      DÉCARY J.A.

         LÉTOURNEAU J.A.

         NOËL J.A.

BETWEEN:

     GLENMAROON HOLDINGS (1986) LTD.

     Appellant

     - and -

     HER MAJESTY THE QUEEN

     Respondent

     REASONS FOR JUDGMENT OF THE COURT

     (Delivered from the Bench at Montreal, Quebec

     on Tuesday, March 23, 1999)

NOËL J.A.

[1]      We have come to the conclusion that the Tax Court Judge properly exercised her discretion in refusing to grant the taxpayer's motion to strike the Minister's reply under paragraph 58(1)b) of the Tax Court of Canada Rules (General Procedure) "because it discloses no reasonable grounds ... for opposing the appeal".

[2]      It may be that the decisions of this Court in Husky Oil¹ and Nova Corporation² will eventually seal the fate of this dispute in favour of the taxpayer but it properly falls to the Tax Court to decide the matter in the light of the particular circumstances of the transaction here in issue.

[3]      The appeal will be dismissed with costs.

     Marc Noël

     J.A.

     FEDERAL COURT OF CANADA

     APPEAL DIVISION

     NAMES OF COUNSEL AND SOLICITORS OF RECORD

COURT NUMBER:              A-929-96

STYLE OF CAUSE:              GLENMAROON HOLDINGS (1986) LTD.

     Appellant

                         AND:

                         HER MAJESTY THE QUEEN

     Respondent

PLACE OF HEARING:              Montreal, Québec

DATE OF HEARING:              March 23, 1999

REASONS FOR JUDGMENT OF THE COURT (DÉCARY, LÉTOURNEAU, NOËL, JJ.A.) DELIVERED FROM THE BENCH BY:

                         Noël J.A.

DATED:                      March 23, 1999

APPEARANCES:

Mr. Guy Du Pont. Esq./              for the Appellant

Mr. Francis-Ian Rojas, Esq.

Mr. Roger Roy, Esq.                  for the Respondent

SOLICITORS OF RECORD:

Goodman, Phillips & Vineberg          for the Appellant

Montreal, Québec

Morris Rosenberg                  for the Respondent

Deputy Attorney General of Canada

Ottawa, Ontario         

__________________

¹      The Queen v. Husky Oil Ltd., 95 D.T.C. 5244.

²      Nova Corporation of Alberta v. The Queen, 97 D.T.C. 5229.