INCOME TAX |
Practice |
Canada v. Imperial Oil Ltd.
A-103-03, A-104-03
2003 FCA 289, Sharlow J.A.
26/6/03
6 pp.
Appeal from Tax Court interlocutory orders (Imperial Oil Ltd. v. Canada, 2003 DTC 179) dismissing Crown's motion to strike out two respondents' notices of appeal, or to stay appeals, because they challenge assessments based on income tax returns accepted as filed by respondents, or as changed at their request--Crown contending electronically or mechanica-lly generated assessments of income tax returns, resulting as here in acceptance as filed, not "assessments" within meaning of Income Tax Act (ITA), ss. 165(1), 169(1) which can be objected to, and appealed from if M.N.R. fails to respond to notice of objection within 90 days--Tax Court would therefore have no jurisdiction to hear appeals; alternatively, appeals abuse of process of Tax Court--Appeal dismissed-- ITA, s. 165(1) gives every taxpayer right to object to assessment, subject to compliance with statutory time limits, other procedural requirements--If objection not dealt with within specified time, ITA, s. 169(1) giving taxpayer right to appeal to Tax Court--Right to object and appeal cannot be denied or delayed except by some provision of ITA-- Provisions make no distinction between objection to assessment inaccurate because of act or omission of taxpayer, and objection inaccurate because of act or omission of M.N.R., whether result of audit or not--Nothing in ITA requiring taxpayer to delay objection or appeal to accommodate administrative convenience of M.N.R., allowing completion of audit process--M.N.R.'s right to audit and reassess within statutory limitation periods exists regardless of any ongoing objections, appeals--Permitting appeals to taxpayer's own filing not denying M.N.R. procedural advantage of relying on "factual assumptions" in response to income tax appeal in Tax Court: burden of proof on taxpayer --ITA not requiring M.N.R. to make initial assessment of every income tax return prior to full examination--Income Tax Act, R.S.C., 1985 (5th Supp.), c. 1, ss. 165(1) (as am. by S.C. 1994, c. 7, Sch. II, s. 138; 1996, c. 21, s. 45), 169(1) (as am. by S.C. 1994, c. 7, Sch. II, s. 140).