INCOME TAX |
Canada (Attorney General) v. Caisse populaire de la Vallée de l'Or
T-68-02
2005 FC 119, Morneau P.
25/1/05
21 pp.
Plaintiff relying on vehicle of deemed trust referred to in Income Tax Act (ITA), s. 227(4.1), Employment Insurance Act (EIA), s. 86(2.1), as basis for claiming from defendant what plaintiff regards as proceeds of sale of trailer in situation where tax debtor sold property, remitted to defendant, tax debtor's secured creditor, proceeds obtained from sale--On February 2, 2001, Canada Customs and Revenue Agency sending defendant formal demand informing it debtor owed plaintiff money for source deductions (SDs), debtor's property subject to above-mentioned provisions--Trailer, property of debtor at time SDs collected, subject to deemed trust from time of debtor's first default in February 1998--Amount received by defendant after sale of trailer "proceeds thereof" within meaning of ITA, s. 227(4.1)--ITA imposing duty on defendant to remit "proceeds thereof" in priority to Receiver General of Canada--Plaintiff's action allowed, defendant ordered to pay plaintiff sum of $5,849.67, with interest pursuant to Federal Courts Act, ss . 36(2), 37(2)--Income Tax Act, R.S.C., 1985 (5th Supp.), c. 1, s. 227(4.1) (as enacted by S.C. 1998, c. 19, s. 226(1))--Employment Insurance Act, S.C. 1996, c. 23, s. 86(2.1) (as am. by S.C. 1998, c. 19, s. 266)--Federal Courts Act, R.S.C., 1985, c. F-7, ss. 1 (as am. by S.C. 2002, c. 8, s. 14), 36 (as am. by S.C. 1990, c. 8, s. 9; S.C. 2002, c. 8, s. 36), 37 (as am. idem, s. 37).