INCOME TAX |
Seizure |
Canada v. Piccott
A-651-02
2004 FCA 291, Pelletier J.A.
14/9/04
20 pp.
Appeal from Federal Court's decision ((2002), 224 F.T.R. 112) setting aside seizure, sale--Respondent in arrears with respect to payment of tax liabilities--On November 27, 2001, Canada Customs and Revenue Agency certified, pursuant to Income Tax Act (ITA), s. 233, respondent owed $4,447.95 plus interest compounded daily until date of payment-- Certificate registered in Federal Court of Canada thus making certificate enforceable as judgment of Court--Respondent alleging never notified certificate issued in relation to indebtedness--On April 16, 2002, CCRA instructed Sheriff to seize, sell certain assets of respondent--Sheriff seized, sold vehicles from business premises (used car lot)--Motions judge found seizure was made without authority because no writ of execution issued--Original certificate of judgment filed with Sheriff as proof of judgment--S. 223(5) permitting filing of Federal Court document, writ or notification ("memorial") to create charge on property in a province, in same manner as document evidencing judgment of superior court of province or amount required to be remitted in respect of debt owing to provincial Crown--Whether certificate of judgment "memorial" within meaning of ITA, s. 223(5), and if so, whether must be accompanied by writ of execution-- Parliament declined to establish separate federal judgment enforcement system--Chose instead to have Federal Court orders enforced through provincial judgment enforcement systems--Parliament also free to provide for other means of enforcing its claims--In addition to deeming certificates to be enforceable as judgments of Court upon registration, s. 223 providing method of enforcement of certificates--Minister can rely on specific provisions in ITA for enforcement of tax liabilities even if differ from enforcement provisions of Federal Court Act--Motions judge noted all forms of "memorial" required document be issued by Federal Court-- As unable to find any indication any document had been issued, concluded no document capable of being a "memorial"--Consequently, found notice judgment invalid since no underlying "memorial"--Document "issued" for purposes of ITA, s. 223(5) was original certificate of judgment --To extent document intended to prove certificate there represented indeed filed in Court, nothing could be done to make document more conclusive or authoritative--Use of Court seal authenticated document, certification provided confirmation of registration--That document issued by Court thus satisfying requirements of s. 223(5)--Appeal allowed-- Income Tax Act, R.S.C., 1985 (5th Supp.), c. 1, ss. 223 (as am. by S.C. 1994, c. 7, Sch. VIII, s. 129; 1998, c. 19, s. 224), 233 (as am. by S.C. 1997, c. 25, s. 68).