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Del Zotto v. M.N.R.

T-2022-93

McKeown J.

26/11/93

5 pp.

Application to stay Income Tax Act, s. 231.4 inquiry before Tax Court pending disposition by Trial Division of action for declaration s. 231.4 unconstitutional -- Application of test in Manitoba (Attorney General) v. Metropolitan Stores Ltd., [1987] 1 S.C.R. 110 -- (1) Serious issue to be tried -- In earlier s. 28 application Hugessen J.A. stating Charter-based attack on 231.4 crying out to be made -- Doctrines of issue estoppel, res judicata not applicable in public law cases -- Even if doctrines applied herein, special circumstances exception enunciated in Grandview (Town of) v. Doering, [1976] 2 S.C.R. 621 apply, given Court of Appeal call for Charter review, fact action commenced before Federal Court of Appeal hearing or decision -- (2) Irreparable harm to applicant -- Inquiry integral step in eventual criminal prosecution and resulting damage unacceptable -- Crown not undertaking not to use any evidence so obtained should s. 231.4 be declared invalid -- (3) Balance of convenience favouring applicant, given delays by respondent, lack of harm to respondent if matter stayed -- Within Federal Court's jurisdiction to stay Tax Court's order: Kindler v. Canada (Minister of Justice), [1989] 2 F.C. 38 (T.D.) -- Federal Court Rules, C.R.C., c. 663, RR. 400, 600(4) -- Federal Court Act, R.S.C., 1985, c. F-7, s. 18 (as am. by S.C. 1990, c. 8, s. 4) -- Income Tax Act, S.C. 1970-71-72, c. 63, s. 231.4 (as enacted by S.C. 1986, c. 6, s. 121).

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