Jordan Financial Ltd. v. Minister of National Revenue, 2007 FCA 263

JudgeSexton, Malone and Ryer, JJ.A.
CourtFederal Court of Appeal (Canada)
Case DateJuly 27, 2007
JurisdictionCanada (Federal)
Citations2007 FCA 263;(2007), 366 N.R. 261 (FCA)

Jordan Financial Ltd. v. MNR (2007), 366 N.R. 261 (FCA)

MLB headnote and full text

Temp. Cite: [2007] N.R. TBEd. AU.005

Jordan Financial Limited on behalf of the Pension Plan for Presidents of Jordan Financial Limited (appellant) v. Minister of National Revenue (respondent)

(A-472-05; 2007 FCA 263)

Indexed As: Jordan Financial Ltd. v. Minister of National Revenue

Federal Court of Appeal

Sexton, Malone and Ryer, JJ.A.

July 27, 2007.

Summary:

A retired police officer (Ross), rather than collecting his OMERS pension, had the commuted value of the pension ($754,513.47) transferred to a newly created pension plan (Plan) set up by Jordan Financial, a company that purportedly employed Ross. Ross was the sole member of the Plan. Following an audit, the Canada Revenue Agency gave Notice of Intent under s. 147.1(11)(a) of the Income Tax Act that it proposed to retroactively revoke registration of the Plan on the ground that it failed to comply with the prescribed registration conditions in s. 8502 of the Income Tax Act Regulations. Particularly, the Agency submitted that the primary purpose of the Plan, which was to provide lifetime retirement benefits to Ross as an employee of Jordan Financial in respect of his service as an employee, was not met. Jordan Financial appealed.

The Federal Court of Appeal dismissed the appeal.

Administrative Law - Topic 2266

Natural justice - The duty of fairness - What constitutes procedural fairness - [See Income Tax - Topic 4661 ].

Income Tax - Topic 4661

Deferred and other special income arrangements - Registered pension plans - Revocation - General - A retired police officer (Ross), rather than collecting his OMERS pension, had the commuted value of the pension ($754,513.47) transferred to a newly created pension plan (Plan) set up by Jordan Financial, a company that purportedly employed Ross - Ross was the sole member of the Plan - Following an audit, the Canada Revenue Agency gave Notice of Intent under s. 147.1(11)(a) of the Income Tax Act that it proposed to retroactively revoke registration of the Plan on the ground that it failed to comply with the prescribed registration conditions in s. 8502 of the Income Tax Act Regulations -  Particularly, the Agency submitted that the primary purpose of the Plan, which was to provide lifetime retirement benefits to Ross as an employee of Jordan Financial in respect of his service as an employee, was not met - Jordan Financial appealed - The Federal Court of Appeal dismissed the appeal - The onus was on Ross to demonstrate that the Agency erred in its factual conclusions underpinning the decision to give a notice of proposed revocation - The Agency complied with the rules of natural justice and procedural fairness by conveying the nature of its concerns and giving Ross an opportunity to respond - The Agency's decision that the conditions of s. 8502 were not met was a question of fact - Those conclusions (no bona fide employment relationship and no primary purpose of establishing lifetime retirement benefits) were not proved to be unfounded or unsupported by the record.

Income Tax - Topic 4665

Deferred and other special income arrangements - Registered pension plans - Revocation - Judicial review - [See Income Tax - Topic 4661 ].

Cases Noticed:

Loba Ltd. v. Minister of National Revenue, [2004] N.R. Uned. 186; 2004 FCA 342, refd to. [para. 5].

1346687 Ontario Inc. v. Minister of National Revenue (2007), 366 N.R. 275; 2007 FCA 262 (F.C.A.), refd to. [para. 6].

Boudreau v. Minister of National Revenue et al. (2005), 340 N.R. 268; 2005 FCA 304, refd to. [para. 32].

Renaissance International v. Minister of National Revenue, [1983] 1 F.C. 860; 47 N.R. 1 (F.C.A.), refd to. [para. 34].

Human Life International In Canada Inc. v. Minister of National Revenue, [1998] 3 F.C. 202; 232 N.R. 174 (F.C.A.), refd to. [para. 35].

Canadian Committee for the Tel Aviv Foundation v. Minister of National Revenue (2002), 287 N.R. 82; 2002 FC 72, refd to. [para. 35].

Statutes Noticed:

Income Tax Act, R.S.C. 1985 (5th Supp.), c. 1, sect. 147.1(11), sect. 172(3)(f), sect. 180 [Appendix A].

Income Tax Act Regulations (Can.), Income Tax Regulations, C.R.C. 1978, c. 945, sect. 8502(a) [Appendix A].

Income Tax Regulations - see Income Tax Act Regulations (Can.).

Counsel:

Eric Fournie, for the appellant;

Roger LeClaire and Justine Malone, for the respondent.

Solicitors of Record:

Fournie Mickleborough LLP, Toronto, Ontario, for the appellant;

John H. Sims, Q.C., Deputy Attorney General of Canada, Ottawa, Ontario, for the respondent.

This appeal was heard on April 25, 2007, at Toronto, Ontario, before Sexton, Malone and Ryer, JJ.A., of the Federal Court of Appeal.

On July 27, 2007, Ryer, J.A., delivered the following judgment for the Court of Appeal.

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6 practice notes
  • Table of Cases
    • Canada
    • Irwin Books Pension Law. Third Edition
    • August 5, 2021
    ...18, 338 Jordan Financial Ltd v Canada (Minister of National Revenue – MNR), 2007 FCA 263, leave to appeal to SCC refused, [2007] SCCA No 460 ...................................................................................... 104, 124 Joy Technologies Canada Inc v Montreal Trust Co of Can......
  • Table of Cases
    • Canada
    • Irwin Books Archive Pension Law. Second Edition
    • August 29, 2013
    ...[1948] OR 735, [1948] 4 DLR 704, [1947] OJ No 563 (HCJ) .... 18 Jordan Financial Ltd v Canada (Minister of National Revenue – MNR), 2007 FCA 263, leave to appeal to SCC refused, [2007] SCCA No 460 ...... 10 0 Joy Technologies Canada Inc v Montreal Trust Co of Canada (1995), 12 CCPB 182, 7 E......
  • Reach
    • Canada
    • Irwin Books Pension Law. Third Edition
    • August 5, 2021
    ...FCA 342, leave to appeal to SCC refused, [2004] SCCA No 540 [ Loba ]; Jordan Financial Ltd v Canada (Minister of National Revenue — MNR) , 2007 FCA 263, leave to appeal to SCC refused, [2007] SCCA No 460 [ Jordan ]; 1346687 Ontario Inc v Canada (Minister of National Revenue- MNR) , 2007 FCA......
  • Reach
    • Canada
    • Irwin Books Archive Pension Law. Second Edition
    • August 29, 2013
    ...FCA 342, leave to appeal to SCC refused, [2004] SCCA No 540 [ Loba ]; Jordan Financial Ltd v Canada (Minister of National Revenue — MNR) , 2007 FCA 263, leave to appeal to SCC refused, [2007] SCCA No 460 [ Jordan ]; 1346687 Ontario Inc v Canada (Minister of National Revenue — MNR) , 2007 FC......
  • Request a trial to view additional results
2 cases
  • 1398874 Ontario Inc. v. Minister of National Revenue, 2010 FCA 14
    • Canada
    • Canada (Federal) Federal Court of Appeal (Canada)
    • January 13, 2010
    ...262, leave to appeal refused (2008), 384 N.R. 398 (S.C.C.), refd to. [para. 1]. Jordan Financial Ltd. v. Minister of National Revenue (2007), 366 N.R. 261; 2007 FCA 263, leave to appeal refused (2008), 384 N.R. 398 (S.C.C.), refd to. [para. Loba Ltd. v. Minister of National Revenue, [2004] ......
  • Jordan Financial Ltd. v. Minister of National Revenue, 228 CCC (3d) 576
    • Canada
    • Supreme Court (Canada)
    • January 24, 2008
    ...Presidents of Jordan Financial Limited v. Minister of National Revenue , a case from the Federal Court of Appeal dated July 27, 2007. See 366 N.R. 261. See Bulletin of Proceedings taken in the Supreme Court of Canada at pages 121 to 123, January 25, 2008. Motion dismissed. [End of document]......
2 books & journal articles
  • Table of Cases
    • Canada
    • Irwin Books Pension Law. Third Edition
    • August 5, 2021
    ...18, 338 Jordan Financial Ltd v Canada (Minister of National Revenue – MNR), 2007 FCA 263, leave to appeal to SCC refused, [2007] SCCA No 460 ...................................................................................... 104, 124 Joy Technologies Canada Inc v Montreal Trust Co of Can......
  • Reach
    • Canada
    • Irwin Books Pension Law. Third Edition
    • August 5, 2021
    ...FCA 342, leave to appeal to SCC refused, [2004] SCCA No 540 [ Loba ]; Jordan Financial Ltd v Canada (Minister of National Revenue — MNR) , 2007 FCA 263, leave to appeal to SCC refused, [2007] SCCA No 460 [ Jordan ]; 1346687 Ontario Inc v Canada (Minister of National Revenue- MNR) , 2007 FCA......

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