A-486-96
CORAM: PRATTE
DÉCARY, JJ.A.
CHEVALIER, D.J.
BETWEEN:
LOUISE LARENTE,
Applicant
- and -
MINISTER OF NATIONAL REVENUE,
Respondent
Hearing held in Montréal, Quebec, Monday, February 24, 1997.
Judgment rendered at the hearing, Monday, February 24, 1997.
REASONS FOR JUDGMENT OF THE COURT BY: PRATTE J.A.
A-486-96
CORAM: PRATTE
DÉCARY, JJ.A.
CHEVALIER, D.J.
BETWEEN:
LOUISE LARENTE,
Applicant
- and -
MINISTER OF NATIONAL REVENUE,
Respondent
REASONS FOR JUDGMENT OF THE COURT
(Pronounced at the hearing in Montréal, Quebec,
Monday, February 24, 1997)
PRATTE, J.A.
We are all of the opinion that the impugned decision should be quashed.
In our view, the Minister's decision that the applicant and her employer would not have entered into a contract of employment providing such generous compensation had there not been a non-arm's length relationship between them was in reality based solely on the fact that the applicant was receiving an excessive share of the overall compensation paid by the company without regard for the nature of the work she was doing and the time she spent on it. For this reason, this decision is in our opinion arbitrary; it should have been quashed by the Tax Court of Canada judge.
As to the judge's statement that, in any event, he thought "[Translation] the [applicant's] contract of employment was strongly influenced by the relationship between her and the owner of the company", it appears to us to reflect the judge's opinion that, had there not been the relationship between the applicant and the owner of the company, the latter would have been happy to hire someone less competent who would have provided him with work of less quality. That was an error of law. In answering the question raised by subparagraph 3(2)(c)(ii) of the Unemployment Insurance Act, the issue is on what conditions would a third party furnishing the same labour as the applicant have been employed.
The impugned decision shall therefore be quashed and the matter returned to the Tax Court of Canada for a disposition that reflects the reasons for our decision.
Louis Pratte
J.A.
Certified true translation
Christiane Delon, LL.L.
IN THE FEDERAL COURT OF APPEAL
A-486-96
BETWEEN:
LOUISE LARENTE,
Applicant
- and -
MINISTER OF NATIONAL REVENUE,
Respondent
REASONS FOR JUDGMENT
OF THE COURT
FEDERAL COURT OF APPEAL
NAMES OF COUNSEL AND SOLICITORS OF RECORD
FILE NO.: A-486-96
STYLE: Louise Larente v.
Minister of National Revenue
PLACE OF HEARING: Montréal, Quebec
DATE OF HEARING: Monday, February 24, 1997
REASONS FOR JUDGMENT
OF THE COURT: Pratte, J.A.
Décary, J.A.
Chevalier, D.J.
PRONOUNCED AT THE
HEARING BY: Pratte, J.A.
APPEARANCES:
Louise Larente the applicant representing herself
Martin Gentile for the respondent
SOLICITORS OF RECORD:
George Thomson for the respondent
Deputy Attorney General
of Canada
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