The Respondent brought a motion under section 58 of the Tax Court of Canada Rules (General Procedure) for the determination of a question of law before the hearing.
The underlying appeal concerned an assessment under section 325 of the Excise Tax Act for a non-arm's length transfer of dividends, where the original tax debtor had subsequently made a Division I proposal under the Bankruptcy and Insolvency Act.
The Court dismissed the motion, finding that the proposed question was one of mixed fact and law, and that answering it would not dispose of all or part of the proceeding or result in a substantially shorter hearing.
