Minister of National Revenue v. The Money Stop Ltd. et al., (2013) 427 F.T.R. 107 (FC)

JudgeZinn, J.
CourtFederal Court (Canada)
Case DateJanuary 29, 2013
JurisdictionCanada (Federal)
Citations(2013), 427 F.T.R. 107 (FC);2013 FC 133

MNR v. Money Stop Ltd. (2013), 427 F.T.R. 107 (FC)

MLB headnote and full text

[French language version follows English language version]

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

.........................

Temp. Cite: [2013] F.T.R. TBEd. FE.039

The Minister of National Revenue (applicant) v. The Money Stop Ltd. and Tel Sutherland (respondents)

(T-2045-11; 2013 FC 133; 2013 CF 133)

Indexed As: Minister of National Revenue v. The Money Stop Ltd. et al.

Federal Court

Zinn, J.

February 7, 2013.

Summary:

The respondents did not comply with the Minister of National Revenue's request for financial information or with a compliance order issued pursuant to the Income Tax Act. They were found guilty of contempt, but were given a further 30 days to provide the requested information. They did not comply. The Minister asked that the respondents be sentenced.

The Federal Court ordered the respondents to pay a $5,000 fine and the Minister's legal costs of $19,905. They were also ordered to provide the requested financial information within 30 days, failing which the respondent director would be imprisoned for three years.

Contempt - Topic 3301

Punishment - General (incl. considerations) - The Minister of National Revenue requested financial information from the respondents on three occasions in 2011, in order to conduct an audit - The respondents did not comply - An order of compliance was issued by Harrington, J., in February 2012 - The respondents did not comply - The Minister initiated contempt proceedings - At the contempt hearing, the respondents admitted that they had not complied with Harrington, J.'s order - Zinn, J., issued an order finding the respondents in contempt, but permitted them a further 30 days to provide the requested information - The respondents did not comply - The Minister asked that the respondents be sentenced - The respondents did not appear at the sentencing hearing - The Federal Court held that compliance with the Income Tax Act was a fundamental civic duty that could not be taken lightly or ignored - The breach had been intentional and deliberate - The respondents had already received the benefit of lenience shown in the earlier orders that granted them time to comply and purge their contempt - Having failed to take advantage of that and having failed to appear to explain their contempt or provide evidence of compliance, they were deserving of little more - A swift and serious penalty was appropriate to compel compliance, act as a general deterrent, and maintain the public's confidence in the administration of justice - The court ordered the respondents to pay a $5,000 fine and the Minister's legal costs of $19,905 - The Minister should not be out of pocket for having to enforce the court's orders - The respondents were also ordered to provide the requested financial information within 30 days, failing which the respondent director would be imprisoned for three years.

Contempt - Topic 3315

Punishment - Fines - [See Contempt - Topic 3301 ].

Contempt - Topic 3325

Punishment - Imprisonment - When appropriate - [See Contempt - Topic 3301 ].

Contempt - Topic 5115

Practice - Hearing - Costs - [See Contempt - Topic 3301 ].

Income Tax - Topic 5

General - Income Tax Act - Nature of - [See Contempt - Topic 3301 ].

Cases Noticed:

Canadian Human Rights Commission v. Winnicki (2007), 359 N.R. 101; 2007 FCA 52, refd to. [para. 12].

Minister of National Revenue v. Marshall (2006), 294 F.T.R. 297; 2006 FC 788, refd to. [para. 13].

Counsel:

Wendy Bridges, for the applicant;

In person, for the respondents.

Solicitors of Record:

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

This matter was heard via videoconference on January 29, 2013, from Ottawa, Ontario and Edmonton, Alberta, before Zinn J., of the Federal Court, who delivered the following order and reasons for order on February 7, 2013.

To continue reading

Request your trial
8 practice notes
  • Table of Cases
    • Canada
    • Irwin Books International Tax Evasion in the Global Information Age
    • June 23, 2021
    ...(National Revenue) v Marshall, 2006 FC 279 .................................................. 99 Canada (National Revenue) v Money Stop, 2013 FC 133 ............................................. 106 Canada (National Revenue) v Revcon Oilield Constructors Incorporated, 2015 FC 524 ................
  • International Tax Enforcement in Canada
    • Canada
    • Irwin Books International Tax Evasion in the Global Information Age
    • June 23, 2021
    ...231.6 of the Act to obtain taxpayer information or 55 Ibid , s 231.7(5). 56 See, for example, Canada (National Revenue) v Money Stop , 2013 FC 133; Canada (National Revenue) v Vallelonga , 2013 FC 1155. 57 Act , above note 1, s 231.4(1). 58 Del Zotto SCC, above note 22; Charter , above note......
  • Bell Media Inc. v. Macciacchera (Smoothstreams.tv), 2023 FC 1698
    • Canada
    • Federal Court (Canada)
    • December 15, 2023
    ...[Lari]; Trans-High Corp. v Hightimes Smokeshop and Gifts Inc., 2015 FC 919 at paras 32, 35; Minister of National Revenue v Money Stop Ltd, 2013 FC 133 at para 19; Telewizja Polsat S.A. v Radiopol Inc., 2006 FC 137 at para 34. Among other things, this ensures that a “party acting to s......
  • Servus Credit Union Ltd. v. Parlee, 2015 ABQB 700
    • Canada
    • Court of Queen's Bench of Alberta (Canada)
    • November 5, 2015
    ...of court for failing to provide documents to the Canada Revenue Agency and is now in jail: Canada (National Revenue) v Money Stop Ltd. , 2013 FC 133 427 FTR 107; Canada (National Revenue) v Money Stop Ltd. , 2013 FC 684, 2013 DTC 5121. e. "Peter of England" [72] A disturbing window into the......
  • Request a trial to view additional results
6 cases
  • Bell Media Inc. v. Macciacchera (Smoothstreams.tv),
    • Canada
    • Federal Court (Canada)
    • December 15, 2023
    ...[Lari]; Trans-High Corp. v Hightimes Smokeshop and Gifts Inc., 2015 FC 919 at paras 32, 35; Minister of National Revenue v Money Stop Ltd, 2013 FC 133 at para 19; Telewizja Polsat S.A. v Radiopol Inc., 2006 FC 137 at para 34. Among other things, this ensures that a “party acting to s......
  • Servus Credit Union Ltd. v. Parlee, 2015 ABQB 700
    • Canada
    • Court of Queen's Bench of Alberta (Canada)
    • November 5, 2015
    ...of court for failing to provide documents to the Canada Revenue Agency and is now in jail: Canada (National Revenue) v Money Stop Ltd. , 2013 FC 133 427 FTR 107; Canada (National Revenue) v Money Stop Ltd. , 2013 FC 684, 2013 DTC 5121. e. "Peter of England" [72] A disturbing window into the......
  • Minister of National Revenue v. Bosnjak, (2013) 431 F.T.R. 171 (FC)
    • Canada
    • Canada (Federal) Federal Court (Canada)
    • April 15, 2013
    ...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. Margaret McCabe, for the applicant; No appearance, for the respondent. Solicitors of Record: William F. Pen......
  • ASICS Corporation v. 9153-2267 Québec inc., 2017 FC 5
    • Canada
    • Federal Court (Canada)
    • January 6, 2017
    ...Corporation v Hightimes Smokeshop and Gifts Inc., 2015 FC 1104, at para 12; Canada (Minister of National Revenue) v Money Stop, 2013 FC 133, at paras 15 and 18). The onus is not on the plaintiff to proactively demonstrate an ability to pay, but rather on the alleged contemnor to raise this ......
  • Request a trial to view additional results
2 books & journal articles
  • Table of Cases
    • Canada
    • Irwin Books International Tax Evasion in the Global Information Age
    • June 23, 2021
    ...(National Revenue) v Marshall, 2006 FC 279 .................................................. 99 Canada (National Revenue) v Money Stop, 2013 FC 133 ............................................. 106 Canada (National Revenue) v Revcon Oilield Constructors Incorporated, 2015 FC 524 ................
  • International Tax Enforcement in Canada
    • Canada
    • Irwin Books International Tax Evasion in the Global Information Age
    • June 23, 2021
    ...231.6 of the Act to obtain taxpayer information or 55 Ibid , s 231.7(5). 56 See, for example, Canada (National Revenue) v Money Stop , 2013 FC 133; Canada (National Revenue) v Vallelonga , 2013 FC 1155. 57 Act , above note 1, s 231.4(1). 58 Del Zotto SCC, above note 22; Charter , above note......

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT