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Interim charge on trust property obtained to secure trustee's personal tax debt discharged.
The moving party, Charles Shaker, brought a motion to discharge an interim charge against a property obtained by the CRA to secure his personal tax debt.
Shaker argued that he held the property solely as a trustee and a trustee's interest in trust property cannot be charged for a personal debt.
The Federal Court agreed, finding that a trustee's legal interest is not an "interest in real property" within the meaning of Rule 458(1)(a)(i) available to satisfy personal debts.
The Court also refused the CRA's request to have the net proceeds of the property's pending sale paid into court to allow cross-examination, as the CRA had obtained the ex parte order solely on the basis of Shaker's role as trustee.
The motion was granted and the interim charge discharged.
