Date: 19980728
Docket: 97-2283-GST-I
BETWEEN:
ROBIN HENRY,
Appellant,
and
HER MAJESTY THE QUEEN,
Respondent.
Reasons for order
McArthur, J.T.C.C.
[1] The Respondent's counsel brought a motion for an order
dismissing the appeal on the basis that the Appellant did not
serve a Notice of Appeal within the time limited by section 306
of the Excise Tax Act (ETA) nor did he make an
application for extension of time as permitted by section 305 of
the ETA.
[2] At the time, I was not prepared to make a decision without
carefully reviewing the law and proceeded with the hearing of the
appeal. The Respondent relied on the decision in A.G. Canada
v. Bowen, 91 DTC 5594 (F.C.A.) (Bowen). I advised the
Appellant that, had the law not evolved since Bowen, the
Respondent's motion would be granted. I have sought to find
favour in the Appellant's position but cannot and must grant
the Motion dismissing the appeal.
Facts
[3] The facts are not in dispute. The Respondent sent the
Notice of Decision to the Appellant, dated March 26, 1997, to the
same address as indicated by the Appellant on his Notice of
Objection. The 90th day after this date was June 24, 1997. By
letter June 25, 1997 (the 91st day) the Appellant appealed the
assessment. It was received by this Court on June 27, 1997. The
Appellant explained that he had been out of town when the notice
of March 26, 1997 arrived at his addressed and was eventually
returned to the Respondent. The Appellant contacted Revenue
Canada in April 1997 advising them he had not received their
decision and a duplicate copy, with the same March 26, 1997 date,
was sent to him which he acknowledged receiving towards the end
of April 1997.
Analysis
[4] Though the main issue is whether the motion will be
successful, I have chosen to approach the problem from two
directions: first, does the Court have the jurisdiction to accept
the Notice of Appeal as being filed on time; and second, does the
Court have the discretion to treat the Notice of Appeal as an
application for extension of time to file a Notice of Appeal.
Is the Notice of Appeal on time, and if no, does the Tax
Court of Canada have jurisdiction to accept it?
[5] The relevant legislation reads as follows:
"306. Appeal
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." (emphasis mine)
[6] The 90-day limitation period kicks in as soon as the
appropriate notice is sent to the taxpayer. Subsection 301(5)
identifies the notice requirements that the Minister must have
satisfied before the limitation period could commence. It
reads:
"301(5) Notice of decision
After reconsidering an assessment under subsection (3) or
confirming an assessment under subsection (4), the Minister shall
send to the person objecting notice of the Minister's
decision by registered or certified mail."
[7] In Bowen (supra), the case involved an
appeal under the Income Tax Act subsection 165(3) of the
ITA, as it then was, required the Minister to provide
notice of confirmation of an assessment by "registered
mail". Reliance on Bowen (supra) is
appropriate in this case as section 169 of the ITA, worded
similarly to 306 of the ETA. Section 169 sets out a
limitation period for filing a Notice of Appeal to the Tax Court
as 90 days "from the day notice has been mailed".
[8] The Federal Court of Appeal decision in Bowen
(supra), delivered orally per curiam by Stone J.A.,
reasoned that the plain meaning of subsection 165(3) and section
169 of the ITA could not be ignored. Parliament had
required no additional responsibility to inform a potential
appellant other than the notification by registered mail.
[9] The Respondent has satisfied the Court that the notice was
mailed in accordance with the statutory requirement. The
Appellant has filed his Notice of Appeal late and the Court does
not have the jurisdiction to hear the appeal.
[10] The Tax Court has, since Bowen (supra),
uniformly determined that the Respondent is not required to
inform, personally serve or otherwise notify the Appellant of
assessments, reassessments or decisions except as specifically
stated in the ITA. In all cases where a taxpayer has not
been available to receive a notice in time to file an appeal,
whether because they were out of the country, had changed their
mailing addresses or otherwise, the responsibility is placed
squarely on the shoulders of the Appellant to have informed the
Minister of an alternative address or agent.
Can the Notice of appeal be construed as an application for
Extension of Time?
[11] Section 305 of the ETA permits the Appellant to
make application for an extension of time to file a Notice of
Appeal as should have been filed under section 306 of the
ETA.
[12] Section 305 of the ETA mirrors the current section
167 of the ITA. Section 167 of the current ITA
is a revision that came into effect January 17, 1992 and there is
little case law dealing with it. Therefore, I have referred to
the cases involving the pre 1992 ITA. The enactments
under the ETA closely mirror those in the current
ITA in regard to appeals and applications for extension of
time.
[13] Pursuant to subsection 305(1) of the ETA, the
Appellant could have filed an application for an extension of
time to file the Notice of Appeal. Under the old section 167 of
the ITA the Tax Court had a wider discretion in granting
applications "if in its opinion the circumstances of the
case are such that it would be just and equitable to do so".
Even with such an apparently wide discretion Sarchuk T.C.J., in
M.N.R. v. Minuteman Press of Canada Company Limited,
87 DTC 462, aff'd 88 DTC 6275 (F.C.A.), found that a
letter filed by an agent of the appellant, containing the phrase
"we formally wish to appeal", not to be an application
for an extension of time. Counsel for the appellant had argued
that the phrase was ambiguous and therefore should be interpreted
in the appellant's favour.
[14] Section 305 of the ETA, like section 167 of the
current ITA, restricts the discretion given to the Court
more so than did old section 167 at the time of Minuteman
(supra). Now the Court may only grant an application if
all the requirements of section 305 are met. Subsection 305(2)
states that such an application "shall set out the reasons
why" the appeal was not filed on time. Subsection 305(3)
states that the application "shall" be made by
"filing" or "mailing" three copies of the
application and three copies of the Notice of Appeal.
[15] The Appellant in the case before me mailed a letter to
the Minister stating that he "would like to appeal...".
The Appellant also filed with the Registrar a different letter in
which he states that he "would like to proceed with the
Informal Appeal Procedure to appeal...". There is no
ambiguity in the Appellant's language, he simply did not
intend to make an application under section 305 of the ETA
and this Court cannot construe his Notice of Appeal as such.
Conclusion
[16] I could find no case law or statute that provides a legal
basis from which to dismiss the Respondent's motion.
[17] The Respondent is correct in relying on Bowen
(supra) as the authority for the proposition that once the
Minister has discharged his duty under subsection 301(5) of the
ETA, i.e. mailing of decision by registered or
certified mail to the Appellant's last known address,
the 90-day limitation period begins on the next day. The Court
does not have the jurisdiction to adjust the starting date for
the limitation period under any circumstances, nor does it have
the jurisdiction to accept a late filed appeal without a
successful application for an extension of time pursuant to
section 305 of the ETA.
[18] For these reasons it is ordered that the Motion is
granted and the appeal is dismissed.
Signed at Ottawa, Canada, this 28th day of July 1998.
"C.H. McArthur"
J.T.C.C.