Minister of National Revenue v. Marangoni, (2013) 442 F.T.R. 261 (FC)

• Judge: Noël, J.
• Court: Federal Court (Canada)
• Case Date: November 04, 2013
• Jurisdiction: Canada (Federal)
• Citations: (2013), 442 F.T.R. 261 (FC);2013 FC 1154

MNR v. Marangoni (2013), 442 F.T.R. 261 (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. NO.037

La Ministre du Revenu national (demanderesse) v. Albin Marangoni (défendeur)

(T-2183-12; 2013 CF 1154; 2013 FC 1154)

Indexed As: Minister of National Revenue v. Marangoni

Federal Court

Noël, J.

November 14, 2013.

Summary:

The Minister of National Revenue obtained an order requiring Marangoni to comply with a requirement to obtain disclosure and the production of documents respecting his 2009 income tax return. Marangoni did not comply. The Minister obtained an ex parte show cause order.

The Federal Court found Marangoni guilty of contempt and ordered him to comply with the compliance order within 30 days. The court sentenced him to a $500 fine and $1,000 in solicitor and client costs, both payable in 10 monthly payments of $150.

Contempt - Topic 684

What constitutes contempt - Judgments and orders - Disobedience of or non-compliance with - The Minister of National Revenue obtained an order requiring Marangoni to comply with a requirement to obtain disclosure and the production of documents respecting his 2009 income tax return - Marangoni did not comply - The Minister obtained an ex parte show cause order - The Minister was unable to serve the order and motion record personally on Marangoni as required by rule 467(4) of the Federal Courts Rules and eventually left the documents in his mailbox - The Federal Court stated that, given that Marangoni appeared at the hearing and testified, it was able to conclude that the compliance order came to his notice - Accordingly, the court exercised its discretion under rule 147 and declared the service valid - Marangoni acknowledged that he had not sent the documents in time, but asserted that it was impossible for him to do so because of computer problems and his busy schedule - However, he could have contacted the Minister and requested a longer filing deadline - He did provide a series of documents to the Minister during the hearing - However the fact that he might have complied with the order (verification of the documents was required before that conclusion could be drawn) did not detract from the reality that a contempt of court was committed - The court found Marangoni guilty of contempt - See paragraphs 22 to 33.

Contempt - Topic 2649

Defences - Particular defences - Inability to comply with court order - [See Contempt - Topic 684 ].

Contempt - Topic 3315

Punishment - Fines - The Minister of National Revenue obtained an order requiring Marangoni to comply with a requirement to obtain disclosure and the production of documents respecting his 2009 income tax return (the compliance order) - Marangoni did not comply and was found in contempt of court - The Minister requested a $1,500 fine, $3,000 in solicitor and client costs, both payable within 10 days, and an order directing compliance with the compliance order within 30 days - The Federal Court noted that Marangoni's attitude toward his tax obligations constituted an aggravating factor - Further, he never showed an intent to accept his responsibility - On the contrary, he had not wanted to accept service of the compliance order and he never contacted the Minister to get more time to comply with the requirement - However, at the show cause hearing, he explained himself and provided the Minister with documents that he claimed were those sought by the Minister - An appropriate sentence was a $400 fine and $1,000 in solicitor and client costs, payable by 10 monthly payments of $150 - The court also ordered him to comply with the compliance order within 30 days - See paragraphs 34 to 39.

Contempt - Topic 5023

Practice - Notice - Service of - [See Contempt - Topic 684 ].

Contempt - Topic 5115

Practice - Hearing - Costs - [See Contempt - Topic 684 ].

Practice - Topic 2643

Service - Generally - Valid service - What constitutes - [See Contempt - Topic 684 ].

Practice - Topic 2658

Service - Curing defective service - [See Contempt - Topic 684 ].

Cases Noticed:

Minister of National Revenue v. Bosnjak (2013), 431 F.T.R. 171; 108 W.C.B.(2d) 621; 2013 FC 399, refd to. [para. 35].

Minister of National Revenue v. Marshall (2006), 294 F.T.R. 297; 2006 FC 788, refd to. [para. 36].

Statutes Noticed:

Federal Courts Rules, rule 147 [para. 29].

Counsel:

Julie Mousseau, for the applicant;

Albin Marangoni, on his own behalf, for the respondent.

Solicitors of Record:

Julie Mousseau, Montreal, Quebec, for the applicant.

This application was heard at Montreal, Quebec, on November 4, 2013, by Noël, J., of the Federal Court, who delivered the following reasons for order on November 14, 2013.