Sandra Hoeppner

The respondent brought a motion to quash the appeal on the basis that the appellant, a dissolved corporation, lacked the capacity to initiate the appeal.

The appellant's corporate status was dissolved in April 2017, and the notice of appeal was filed in May 2017.

The Tax Court held that filing a notice of appeal constitutes the initiation of a legal proceeding, which a dissolved corporation cannot do under the Manitoba Corporations Act.

The motion was allowed and the appeal was quashed.

The appellants, registered Indians who resided and worked in Winnipeg, appealed reassessments of their 2012 and 2013 taxation years.

They claimed their employment income was exempt from tax under section 87 of the Indian Act because their employer, a corporation owned by Tribal Councils, was resident on a reserve and provided benefits to First Nations.

Applying the connecting factors test, the court weighed the residence of the employer against the fact that the appellants resided, worked, and were paid in Winnipeg.

The court concluded that the location of the employment duties in Winnipeg was the predominant connecting factor, outweighing the employer's connection to a reserve.

The appeals were dismissed.