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.
