[2013] 4 F.C.R. D-10
Income Tax
Practice
Appeal from order dismissing motion under Tax Court of Canada Rules (General Procedure), SOR/90-688a, s. 29—Appellant (Taxpayer Trust) appealing income tax assessment in 2011—Trust terminated in 2012, property transferred to Clearwater Seafoods Incorporated (Corporation)—To facilitate continuation of appeal despite termination of Taxpayer Trust, appellant filing motion in T.C.C. seeking directions under s. 29, i.e. direction permitting Corporation to be named as appellant in place of Taxpayer Trust—T.C.C. concluding circumstances of this case not within scope of s. 29(1), s. 29 thus inapplicable—T.C.C. misinterpreting s. 29(1), construing it too narrowly, disregarding its language, purpose—Relevant portion of s. 29(1) providing that “[w]here at any stage of a proceeding the … liability of a person who is a party to a proceeding in the Court is … transmitted to another person by assignment, bankruptcy, death or other means”—In present instance, disposition of property of Taxpayer Trust resulting automatically in termination of Taxpayer Trust and transmission of its federal income tax liability to one or more other persons—These circumstances within language, intended purpose of s. 29(1)—Once notification made under s. 29, circumstances determined to be within scope of s. 29(1), Chief Justice or judge designated thereby must make directions required by s. 29(3)—Appropriate to return present matter to T.C.C. so that motion filed on behalf of Taxpayer Trust may be reconsidered with view to directing continuation of proceedings—Appeal allowed.
Clearwater Seafoods Holding Trust v. Canada (A-342-12, 2013 FCA 180, Sharlow J.A., reasons for judgment dated July 8, 2013, 8 pp.)