Marzetti v. Marzetti (Bankrupt), (1990) 112 A.R. 70 (QBM)

• Court: Court of Queen's Bench of Alberta (Canada)
• Case Date: November 29, 1990
• Citations: (1990), 112 A.R. 70 (QBM)

Marzetti v. Marzetti (1990), 112 A.R. 70 (QBM)

MLB headnote and full text

Jacqueline Jeannine Marzetti (petitioner) v. Arden Anthony Marzetti (respondent)

(Action No. 4803 61498)

Indexed As: Marzetti v. Marzetti (Bankrupt)

Alberta Court of Queen's Bench

In Bankruptcy

Judicial District of Edmonton

Funduk, Master in Chambers

November 29, 1990.

Summary:

The Director of Maintenance Enforcement and the trustee in bankruptcy each claimed entitlement to an income tax refund owed to the bankrupt husband.

A Master of the Alberta Court of Queen's Bench, in Bankruptcy, held that the refund was property vesting in the trustee.

Bankruptcy - Topic 440.2

Property of bankrupt - Post-bankruptcy income tax refunds - A bankrupt husband entitled to a post-bankruptcy income tax refund owed maintenance arrears - Both the Director of Maintenance Enforcement and the trustee in bankruptcy claimed entitlement to the refund - A Master of the Alberta Court of Queen's Bench, in Bankruptcy, held that the refund was property of the bankrupt under s. 67(c) of the Bankruptcy Act, which vested in the trustee - The refund was not deferred "wages" under s. 68 of the Act.

Family Law - Topic 4054.1

Divorce - Corollary relief - Maintenance - Enforcement - Bankruptcy of payor - Effect of - [See Bankruptcy - Topic 440.2].

Cases Noticed:

British Columbia v. Belair, 75 C.B.R.(N.S.) 1 (S.C.C.), refd to. [para. 10].

I.A.C. v. The T. Eaton Company, [1952] 2 S.C.R. 109, refd to. [para. 19].

Vachon v. Canada Employment and Immigration Commission, 57 C.B.R.(N.S.) 113 (S.C.C.), refd to. [para. 21].

Re Goulet, 24 C.B.R.(N.S.) 222 (Ont. S.C.), disagreed with [para. 24].

Re Szatmari, [1972] 2 O.R. 348; 18 C.B.R.(N.S.) 309; 25 D.L.R.(3d) 508 (S.C.), refd to. [para. 25].

Re Walker, 43 C.B.R.(N.S.) 319 (Ont. S.C.), not folld. [para. 31].

Re Sihler, 43 C.B.R.(N.S.) 309 (Ont. S.C.), not folld. [para. 32].

Re Wagner, 35 C.B.R.(N.S.) 309 (Ont. S.C.), dist. [para. 33].

Re Pixton, 62 C.B.R.(N.S.) 219 (Ont. Registrar), dist. [para. 34].

Re Giroux, 45 C.B.R.(N.S.) 245 (Ont. S.C.), dist. [para. 35].

Re McCullough, 52 C.B.R.(N.S.) 313 (Ont. S.C.), dist. [para. 36].

Re Ali, 62 C.B.R.(N.S.) 222 (Ont. S.C.), dist. [para. 37].

Peat Marwick Thorne Inc. v. Crowe et al. (1990), 97 N.S.R.(2d) 199; 258 A.P.R. 199 (T.D.), not folld. [para. 44].

Re Bouffard, 24 C.B.R.(N.S.) 318 (Ont. S.C. Registrar), refd to. [para. 45].

Hollingshead v. Hazleton, [1916] A.C. 428 (H.L.), refd to. [para. 46].

Lalonde v. Minister of National Revenue, [1982] C.T.C. 2749 (T.R.B.), refd to. [para. 64].

Re Clemenshaw (No. 2), 33 D.L.R.(2d) 524 (B.C.S.C.), refd to. [para. 83].

Statutes Noticed:

Bankruptcy Act, R.S.C. 1985, c. B-3, sect. 2, sect. 67, sect. 68, sect. 71 [para. 14]; sect. 197(2) [para. 83].

Income Tax Act, S.C. 1970-71-72, c. 63, sect. 115(1) [para. 60]; sect. 153(1)(a), 153(3) [para. 57]; sect. 227(1), sect. 227(4), sect. 227(5) [para. 58].

Income Tax Act Regulations, sect. 108(1) [para. 59].

Authors and Works Noticed:

Stikeman, Canada Tax Service (Perm. Ed.), vol. 8, p. 153-108 G [para. 66].

Counsel:

M. McCabe (Ogilvie & Company), for the Trustee;

R.L. Sumka, for the Director;

R.K. Moen, for the Department of Justice;

S. Rutwind, for the Attorney General of Alberta.

This case was heard before Funduk, Master in Chambers, of the Alberta Court of Queen's Bench, in Bankruptcy, Judicial District of Edmonton, who delivered the following judgment on November 29, 1990.