London Life, Compagnie d'assurance-vie v. Canada (Attorney General), 2009 FC 956

• Judge: Pinard, J.
• Court: Federal Court (Canada)
• Case Date: September 16, 2009
• Jurisdiction: Canada (Federal)
• Citations: 2009 FC 956;(2009), 377 F.T.R. 8 (FC)

London Life v. Can. (A.G.) (2009), 377 F.T.R. 8 (FC)

MLB headnote and full text

Temp. Cite: [2009] F.T.R. TBEd. OC.039

London Life - Compagnie d'assurance-vie, 630 Boulevard René-Lévesque West, Suite 1900 Montreal, Quebec H3B 4J5 (applicant) v. Attorney General of Canada and The Minister of National Revenue (respondents)

(T-1224-07; 2009 FC 956)

Indexed As: London Life, Compagnie d'assurance-vie v. Canada (Attorney General)

Federal Court

Pinard, J.

October 20, 2009.

Summary:

London Life applied for judicial review to quash a requirement for information issued by the Minister of National Revenue under s. 231.2 of the Income Tax Act (Can.).

The Federal Court dismissed the application.

Income Tax - Topic 9255

Enforcement - Production of information - Demand of information - General - The Federal Court found no basis for the claim that the Minister of National Revenue had an obligation to prove that the issuance of a requirement for information under s. 231.2 of the Income Tax Act was a reasonable exercise of its power under the Act - See paragraphs 25 to 28.

Income Tax - Topic 9258

Enforcement - Production of information - Demand of information - Respecting unnamed persons - The Minister issued to London Life a requirement for information under s. 231.2 of the Income Tax Act (Can.), in respect of the application of the Act to Ghattas, a London Life commission salesman who was being audited by the Minister - The requirement asked for (a) a copy of the life insurance policies that corresponded to the policy numbers and the names of the payors and insured listed in an appendix to the requirement, and (b) a detailed list of all payments made in respect of those policies, including the name of the beneficiaries - At issue was whether the Minister needed a judicial authorization under s. 231.2(2) to proceed with the requirement for information - The Federal Court held that judicial authorization was not required where the taxpayer (Ghattas), the third party (London Life) and the policy holders were identified - In addition, even if the requirement had related to "unnamed" insured and beneficiaries, judicial authorization was still not required because these "unnamed persons" were not under audit - See paragraphs 1 to 24.

Cases Noticed:

Minister of National Revenue v. Toronto-Dominion Bank (2004), 253 F.T.R. 90; 2004 FC 169, affd. (2004), 332 N.R. 70; 2004 FCA 359, consd. [para. 14].

R. v. McKinlay Transport Ltd. and C.T. Transport Inc., [1990] 1 S.C.R. 627; 106 N.R. 385; 39 O.A.C. 385, consd. [para. 15].

Redeemer Foundation v. Minister of National Revenue (2008), 377 N.R. 277; 2008 SCC 46, refd to. [para. 17].

eBay Canada Ltd. et al. v. Minister of National Revenue (2008), 382 N.R. 261; 2008 FCA 348, refd to. [para. 17].

Minister of National Revenue v. Greater Montréal Real Estate Board, [2008] 3 F.C.R. 366; 371 N.R. 7; 2007 FCA 346, refd to. [para. 17].

Artistic Ideas Inc. v. Canada Customs and Revenue Agency (2005), 330 N.R. 378; 2005 D.T.C. 5165; 2005 FCA 68, consd. [para. 17].

Minister of National Revenue v. Morton, [2007] F.T.R. Uned. 325; 2007 FC 503, consd. [para. 22].

Minister of National Revenue v. Advantage Credit Union, [2009] 2 F.C.R. 185; 331 F.T.R. 252 (F.C.), consd. [para. 22].

Canada v. Amex Bank of Canada (2008), 333 F.T.R. 259; 2008 FC 972, consd. [para. 23].

Statutes Noticed:

Income Tax Act, R.S.C. 1985 (5th Supp.), c. 1, sect. 231.2(2) [para. 11].

Counsel:

Denis A. Lapierre, for the applicant;

Ian Demers, for the respondents.

Solicitors of Record:

Sweibel Novek, LLP, Montreal, Quebec, for the applicant;

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

This application was heard at Montreal, Quebec, on September 16, 2009, by Pinard, J., of the Federal Court, who delivered the following decision at Ottawa, Ontario, on October 20, 2009.