Income Tax
Practice
Collection and Enforcement—Motion under Income Tax Act, R.S.C., 1985 (5th Supp.), c.1, s. 225.2(8) to quash, set aside, annul jeopardy order to collect, guarantee payment of amount owing pursuant to notices of assessment—Respondent in serious financial difficulties, charged with telemarketing fraud in U.S., sold one immovable property days before receipt of assessments—Respondent having initial burden under Act, s. 225.2(8) to show reasonable grounds to doubt test required by s. 225.2(2) met, i.e. that collection of all, part of amounts assessed would be jeopardized by delay in collection—Respondent meeting initial test—Argument that because assessments dated after affidavits supporting motion for jeopardy order signed, and because assessments deemed to have been made on mailing date, that assessments not existing when affidavits signed, rejected—Act, s. 244(15) creating presumption as to starting date for calculation of interests—Regardless, when person in charge of audit signed affidavit, had respondent’s assessments on hand—Furthermore, sale of property not reaction to assessments or attempt to jeopardize tax collection—Applicant aware of telemarketing charges against respondent before making assessments—No conviction yet on charges—Could not conclude recovery of assessed taxes put in jeopardy by respondent’s past conduct—Motion granted.
Alexander (Re) (T-543-08, 2008 FC 902, Beaudry J., judgment dated July 25, 2008, 8 pp.)