Minister of National Revenue v. Bosnjak, (2013) 431 F.T.R. 171 (FC)

• Judge: Gleason, J.
• Court: Federal Court (Canada)
• Case Date: April 15, 2013
• Jurisdiction: Canada (Federal)
• Citations: (2013), 431 F.T.R. 171 (FC);2013 FC 399

MNR v. Bosnjak (2013), 431 F.T.R. 171 (FC)

MLB headnote and full text

[French language version follows English language version]

[La version française vient à la suite de la version anglaise]

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Temp. Cite: [2013] F.T.R. TBEd. JN.014

Minister of National Revenue (applicant) v. Daniel M. Bosnjak (respondent)

(T-2164-12; 2013 FC 399; 2013 CF 399)

Indexed As: Minister of National Revenue v. Bosnjak

Federal Court

Gleason, J.

April 18, 2013.

Summary:

The Minister of National Revenue served a Requirement for Information on Bosnjak to produce certain information and documents. Bosnjak ignored the Requirement. The Minister applied for a compliance order.

The Federal Court, in a decision not reported in this series of reports, ordered Bosnjak to provide the requested information and documents. Bosnjak did not comply with the order. The Minister moved to have a show cause order issued.

The Federal Court, in a decision not reported in this series of reports, issued a show cause order, requiring Bosnjak to attend before the court to answer the allegation that he was guilty of contempt of court and to speak to sentence. Bosnjak did not attend the hearing.

The Federal Court found Bosnjak in contempt of court and ordered him to pay a $3,000 fine and $4,115.59 for the costs of the motion. The court also ordered Bosnjak to provide the Minister with the requested information and documents. If Bosnjak failed to comply with the order within 30 days, the Minister could move to have a warrant issued to apprehend and bring him before the court to show cause why he should not be imprisoned.

Contempt - Topic 3315

Punishment - Fines - The Minister of National Revenue served a Requirement for Information on Bosnjak to produce certain information and documents seeking information respecting unpaid income tax - The Minister obtained a compliance order - Bosnjak did not comply - The Minister obtained a show cause order - Bosnjak failed to attend the hearing - The Minister sought a $5,000 fine, $11,557.65 for its solicitor and client costs, a further order requiring production and, failing payment and production, incarceration - The Federal Court found Bosnjak in contempt of court - The court held that as Bosnjak had not specifically breached an undertaking to the court, a fine of $3,000 was more appropriate than $5,000, and a lengthy period of incarceration should not automatically be imposed for non-compliance - The $11,557.65 in costs sought by the Minister included fees and disbursements incurred respecting the compliance and show cause orders - Both of those orders already made provisions for payment of costs and thus costs for those steps could not be ordered again - The Minister did not provide a breakdown of how much time was expended on the earlier orders as opposed to the present motion - Applying the upper end of Column V of Tariff "B" to the Federal Courts Rules, which provided a rough proxy for solicitor-client costs, the court ordered Bosnjak to pay the Minister $4,115.59 - If Bosnjak failed to comply with the order within 30 days, the Minister could move to have a warrant issued to apprehend and bring him before the court to show cause why he should not be imprisoned.

Contempt - Topic 3325

Punishment - Imprisonment - When appropriate - [See Contempt - Topic 3315 ].

Contempt - Topic 5115

Practice - Hearing - Costs - [See Contempt - Topic 3315 ].

Income Tax - Topic 9256

Enforcement - Production of information - Demand of information - Compliance - [See Contempt - Topic 3315 ].

Practice - Topic 7464

Costs - Solicitor and clients costs - Entitlement to solicitor and client costs - In contempt proceedings - [See Contempt - Topic 3315 ].

Cases Noticed:

Minister of National Revenue v. Bjornstad (2006), 295 F.T.R. 277; 2006 FC 818, refd to. [para. 16].

Minister of National Revenue v. Hrappstead, [2005] F.T.R. Uned. 447 (F.C.), refd to. [para. 16].

Canadian Human Rights Commission v. Winnicki (2007), 359 N.R. 101; 2007 FCA 52, refd to. [para. 17].

Minister of National Revenue v. Marshall (2006), 294 F.T.R. 297; 2006 FC 788, refd to. [para. 17].

Minister of National Revenue v. Money Stop Ltd. et al. (2013), 427 F.T.R. 107; 2013 FC 133, refd to. [para. 18].

Counsel:

Margaret McCabe, for the applicant;

No appearance, for the respondent.

Solicitors of Record:

William F. Pentney, Deputy Attorney General of Canada, Calgary, Alberta, for the applicant.

This motion was heard at Calgary, Alberta, on April 15, 2013, by Gleason, J., of the Federal Court, who delivered the reasons for judgment on April 18, 2013.