Del Zotto v. Canada, [1999] 1 S.C.R. 3
Her Majesty The Queen in right of Canada, the Minister of National Revenue and John Edward Thompson Appellants
v.
Angelo Del Zotto and Herbert B. Noble Respondents
and
The Attorney General for Ontario, the Attorney General of Quebec and the Attorney General for Alberta Interveners
Indexed as: Del Zotto v. Canada
File No.: 26174.
1999: January 20; 1999: January 21.
Present: Lamer C.J. and L’Heureux‑Dubé, Gonthier, McLachlin, Major, Bastarache and Binnie JJ.
on appeal from the federal court of appeal
Constitutional law -- Charter of Rights -- Search and seizure -- Inquiry under Income Tax Act -- Whether s. 231.4 of Income Tax Act infringes s. 8 of Canadian Charter of Rights and Freedoms.
Constitutional law -- Charter of Rights -- Fundamental justice -- Inquiry under Income Tax Act -- Whether s. 231.4 of Income Tax Act infringes s. 7 of Canadian Charter of Rights and Freedoms.
Taxation -- Income tax -- Inquiry -- Whether s. 231.4 of Income Tax Act constitutional -- Canadian Charter of Rights and Freedoms, ss. 7, 8.
Statutes and Regulations Cited
Canadian Charter of Rights and Freedoms, ss. 7, 8.
Income Tax Act, R.S.C. 1952, c. 148 [now R.S.C., 1985, c. 1 (5th Supp.)], s. 231.4 [ad. 1986, c. 6, s. 121].
APPEAL from a judgment of the Federal Court of Appeal, 1997 CanLII 6349 (FCA), [1997] 3 F.C. 40, 215 N.R. 184, 147 D.L.R. (4th) 457, 97 D.T.C. 5328, [1997] 3 C.T.C. 199, 46 C.R.R. (2d) 324, 116 C.C.C. (3d) 123, [1997] F.C.J. No. 795 (QL), setting aside a judgment of the Trial Division, 1997 CanLII 6325 (FC), [1997] 2 F.C. 428, 125 F.T.R. 161, 143 D.L.R. (4th) 340, 97 D.T.C. 5145, [1997] 2 C.T.C. 103, 41 C.R.R. (2d) 63, [1997] F.C.J. No. 85 (QL), dismissing the respondents’ constitutional challenge of s. 231.4 of the Income Tax Act. Appeal allowed.
Ivan S. Bloom, Q.C., and Gordon S. Campbell, for the appellants.
Edward L. Greenspan, Q.C., and David Stratas, for the respondent Del Zotto.
Alan D. Gold and Mahmud Jamal, for the respondent Noble.
Michel Y. Hélie, for the intervener the Attorney General for Ontario.
Monique Rousseau and Gilles Laporte, for the intervener the Attorney General of Quebec.
Robert C. Maybank and Christine L. Enns, for the intervener the Attorney General for Alberta.
The following is the judgment delivered by
//The Court//
1 The Court -- The appeal is allowed with costs throughout for the reasons given by Strayer J.A. of the Federal Court of Appeal. The judgment of the Court of Appeal is set aside and the trial judgment is restored. The constitutional questions are answered as follows:
- Does s. 231.4 of the Income Tax Act, R.S.C. 1952, c. 148, as amended, restrict rights guaranteed by s. 7 of the Canadian Charter of Rights and Freedoms?
The answer is no.
- If so, can these restrictions be demonstrably justified in a free and democratic society under s. 1 of the Canadian Charter of Rights and Freedoms?
Given the answer to the first question, the second question does not arise.
- Does s. 231.4 of the Income Tax Act, R.S.C. 1952, c. 148, as amended, restrict the right guaranteed by s. 8 of the Canadian Charter of Rights and Freedoms?
The answer is no.
- If so, can these restrictions be demonstrably justified in a free and democratic society under s. 1 of the Canadian Charter of Rights and Freedoms?
Given the answer to the third question, the fourth question does not arise.
Appeal allowed with costs.
Solicitor for the appellants: The Department of Justice, Ontario Regional Office, Toronto.
Solicitors for the respondent Del Zotto: Greenspan, Nenein & White, Toronto.
Solicitors for the respondent Noble: Gold & Fuerst, Toronto.
Solicitor for the intervener the Attorney General for Ontario: The Attorney General for Ontario, Toronto.
Solicitor for the intervener the Attorney General of Quebec: The Department of Justice, Sainte-Foy.
Solicitor for the intervener the Attorney General for Alberta: The Attorney General for Alberta, Edmonton.