Mah v. M.N.R.
T-1173-90
Jerome A.C.J.
24/9/93
10 pp.
Appeal from Tax Court's dismissal of appeals from assessments -- Plaintiff's parents registered owners in joint tenancy of lands and house situated at 4136-108 Street, Edmonton, and which occupied as matrimonial home from November 1973 -- Defaulting on mortgage and foreclosure actions commenced in 1983 -- Executed transfer of land purporting to transfer title in property to plaintiff without his knowledge or consent October 18, 1983 -- Plaintiff unaware of transfer until April 17, 1984 when served with statement of claim by first mortgagee -- Plaintiff quit claimed property and purchased it from second mortgagees on October 10, 1984 -- Income Tax Act, s. 160 providing transferee of property in non-arm's length transaction jointly and severally liable to pay part of transferor's tax -- Plaintiff assessed for unpaid income taxes owing by parents for 1981, 1982, 1983 outstanding October 18, 1983 -- Tax Court dismissing appeal -- Appeal allowed -- S. 160 to assist Minister when taxpayer's debt could be subject of judgment or certificate and subsequent registration or execution against debtor's property and taxpayer attempting to defeat such actions by Minister by transferring property to family member -- Transaction done entirely without plaintiff's knowledge or consent not divesting parents of title -- Minister not needing assistance of s. 160 unless transfer valid -- On October 18, 1983 parents beneficial owners of land and liable to execution against it for their tax arrears -- Nothing jeopardized Minister's security against title by failed attempts to transfer -- Minister's claim pursuant to s. 160 would add liability to plaintiff when had no knowlege either of transfer or of debt -- S. 160 not operating against plaintiff until aware of intended transfer -- Income Tax Act, S.C. 1970-71-72, c. 63, s. 160 (as am. by S.C. 1980-81-82-83, c. 140, s. 107).