Angela Shen

The plaintiff brought a proposed class action against the Canada Revenue Agency and a CRA employee on behalf of investors in a tax-driven investment scheme.

The parties negotiated a settlement to resolve the tax disputes and civil claims, which was accepted by over 90% of the putative class members.

The plaintiff moved for a pre-certification order to discontinue the proposed class action to implement the settlement.

The court approved the discontinuance under s. 29 of the Class Proceedings Act, 1992, finding it was not prejudicial to the putative class members.

The defendants, having successfully moved to dismiss the plaintiff's action under Rule 21, sought costs of over $35,000 on a partial indemnity basis.

The plaintiff argued the amount was excessive for a straightforward motion and pointed to his own costs outline of approximately $6,600.

The court found that while the Department of Justice lawyers were entitled to costs, the hours claimed were disproportionate to the narrow legal question involved.

The court awarded the defendants $15,000 in all-inclusive partial indemnity costs, balancing the moving party's burden with the reasonable expectations of the unsuccessful party.

The plaintiff participated in a charitable donation tax shelter, claiming substantial tax refunds which were later disallowed by the Canada Revenue Agency (CRA).

The plaintiff brought a claim in Superior Court alleging CRA and its employees owed a duty to police the registration of the charity associated with the scheme and to warn the public.

The defendants moved to strike the statement of claim.

The court allowed the motion, finding no duty of care owed by CRA to warn taxpayers about unsuccessful tax schemes, that the Charter claim was bald and untenable, and that claims against individual employees were an abuse of process.

The court also struck damages related to the lost tax deduction as being within the exclusive jurisdiction of the Tax Court.

The defendants brought a motion to strike a paragraph of the plaintiff’s statement of claim seeking an interlocutory injunction restraining the Canada Revenue Agency from collecting outstanding tax liabilities.

The underlying action alleged torts including misrepresentation, breach of contract, misfeasance in public office, and intentional interference with economic relations arising from the handling of a taxpayer relief application.

The court held that s. 18 of the Federal Courts Act grants exclusive jurisdiction to the Federal Court to issue injunctions against federal boards, commissions, or tribunals, including the CRA when exercising tax collection powers.

Although superior courts retain jurisdiction over damages claims against the Crown grounded in tort or contract, they cannot grant injunctive relief against such federal entities.

The impugned paragraph seeking injunctive relief was therefore struck without leave to amend.