Kris Gurprasad

The applicant estate appealed reassessments denying donation tax credits claimed for the 2006, 2007, and 2008 taxation years through the Global Learning Gifting Initiative tax shelter.

The applicant brought a motion to strike over 200 paragraphs from the respondent's reply on grounds including irrelevance, prejudice, and pleading mixed fact and law.

The Tax Court of Canada granted the motion in part, striking certain paragraphs with leave to amend where they were confusing, irrelevant, or improperly pled conclusions of mixed fact and law, while leaving issues of relevance and burden for assumptions of fact to the trial judge.

The corporate taxpayer transitioned to a perpetual inventory tracking system, resulting in an accounting error where the cost of certain inventory was not recognized in the years it was sold (2010 and 2011).

In 2012, the taxpayer attempted to correct this by writing down the value of the inventory and deducting its cost as a compensatory adjustment.

The Minister reassessed to disallow the deduction.

The Tax Court of Canada dismissed the taxpayer's appeal, holding that under the Income Tax Act, inventory can only be written down if it is held for sale, and the cost of inventory can only be deducted in the year it is sold, regardless of whether the adjustment was consistent with GAAP.

The appellant sought an interim injunction in the Superior Court of Justice to prevent the Canada Revenue Agency (CRA) from collecting unpaid taxes, interest, and penalties pending a breach of contract claim.

The motion judge struck the claim, finding the Federal Court had exclusive jurisdiction under s. 18(1) of the Federal Courts Act.

The Court of Appeal dismissed the appeal, confirming that s. 18(1) applies to all injunctions, including interim ones, and that the CRA is a federal board, commission, or other tribunal when exercising tax collection powers.

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.

The applicants sought judicial review of the Minister of Revenue's decision denying their request for an extension of time to file Retail Sales Tax returns.

The applicants had been assessed for unpaid taxes and failed to file a Notice of Objection within the 180-day limitation period.

Seven years later, they requested an extension to file late returns.

The Divisional Court dismissed the application, finding it moot because the four-year limitation period for the Minister to reassess taxes had expired, meaning an extension would have no practical effect.

The court also declined to exercise its discretion because the applicants had failed to utilize the statutory remedies available to them.

The plaintiff sought leave to appeal a decision dismissing his motion for an interlocutory injunction against the Canada Revenue Agency.

The motion judge had found that the Federal Court had exclusive jurisdiction and that the plaintiff failed to establish irreparable harm.

The Divisional Court dismissed the motion for leave to appeal, finding that the plaintiff failed to satisfy the test under Rule 62.02(4) as there was no issue of broad general importance and it was not desirable to grant leave given the parallel proceeding in the Federal Court.