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INCOME TAX

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M.N.R. v. Abu-Taha

T-245-01

2001 FCT 76, McKeown J.

14/2/01

3 pp.

Respondent charged with drug-related offences and $270,000 seized--Respondent intending to bring application in Ontario courts to have some of seized funds paid out to respondent to cover living and legal expenses--M.N.R. now making motion under ITA, s. 225.2 for authorization to take forthwith any of actions described in s. 225.1(1)(a) to (g) in respect of respondent's tax debt--Motion dismissed--Case where Federal Court should defer to Superior Court (Ontario) (S.C.O.)--Although under ITA, s. 225.2, both courts have jurisdiction to hear applicant's application, seizure of monies by RCMP made pursuant to search warrant duly authorized by Ontario Courts--S.C.O. going to have to decide how funds seized by RCMP should be disposed of when respondent's motion heard--S.C.O. should not be faced with order of another court over which it has no jurisdiction in trying to decide respondent's motion--Important to note respondent's motion cannot be brought in Federal Court--Indeed, respondent's motion can only be brought in S.C.O., whereas applicant's motion can be brought in either court--In interest of justice to exercise discretion in order to defer to jurisdiction of S.C.O.--Income Tax Act, R.S.C., 1985 (5th Supp.), c. 1, s. 225.1, 225.2.

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