Nancy Arnold

The applicant, a former corporate director, sought judicial review of a decision refusing to recommend remission of tax, interest, and penalties owed for unremitted source deductions.

The corporate business paid severance instead of remitting deductions, relying on anticipated asset sales.

Third-party purchasers later breached agreements and failed to pay the tax liabilities.

The applicant argued extenuating circumstances, CRA negligence, and unintended legislative consequences.

The Federal Court held the decision was reasonable, finding the tax debt arose from the directors' voluntary decision to prioritize other payments over statutory trust obligations and that third-party conduct did not warrant remission.

The plaintiff sought damages for unjust enrichment, claiming he never received income tax refund cheques for the 2005 and 2006 taxation years.

The Canada Revenue Agency moved for summary judgment.

The Federal Court granted the motion, holding that the action was statute-barred under the Limitations Act, 2002 because the plaintiff ought to have known of the loss by July 2015 when his agent received a statement of account.

The Court further held there was no genuine issue for trial on the merits, as the Agency's evidence established the cheques were issued, mailed, and negotiated, meaning the Crown was not enriched.