Maplesden v. M.N.R.
T-47-91 / T-1134-90
Reed J.
10/12/97
14 pp.
Appeal from Tax Court decision finding plaintiff liable for income tax because of shareholder's loan she had received (T47-91)-Claim in negligence against defendant alleging Revenue Canada's own actions made it impossible for plaintiff to repay loan-In 1984, plaintiff's husband involved in several businesses taking advantage of Scientific Research Tax Credits provisions of Income Tax Act-Corporations involved 285614 Alberta Ltd. ('614), Albion Transportation Research Corporation (Albion)-On October 30, 1984, Albion approved, by corporate resolution, loan of $750,000 to plaintiff-Money used to purchase house, 160 acres of land (Priddis property)-In July 1985, plaintiff, husband considered transferring title to Priddis property from plaintiff to '614 property-Transfer not proceeded with as Albion operating companies under surveillance by Revenue Canada with respect to possible tax fraud-In September 1985, notice of assessment issued in respect of transfer of Priddis property from Albion Transportation Research Corporation to plaintiff-Notice of assessment issued erroneous on face as Priddis property not transferred from Albion to plaintiff-Property acquired from arm's- length vendor-In June 1988, notice of reassessment issued against plaintiff for 1984 taxation year in amount of $342,101.53, based on receipt by her of shareholder's benefit-Income Tax Act, s. 15(2) sets out conditions under which shareholder's benefit not included in person's income-Plaintiff's appeal from tax assessment to Tax Court dismissed-Court having no authority to grant relief sought-Court's authority to determine correctness of Minister's decisions by reference to applicable law, primarily Income Tax Act, as applied to facts of taxpayer's case-No discretionary grant of authority conferred on Court in case of income tax appeals-Plaintiff's appeal from Tax Court decision dismissed-Revenue Canada issued erroneous tax assessment-Error not necessarily constituting negligence-No evidence defendant's officials acted negligently when issued writ in pursuit of taxes owed by Albion-Actions of Revenue Canada not causing non-conveyance of property-No evidence taxpayer considered conveying property to '614 or selling it to third party during time in question-Plaintiff already recovered damages from solicitors for amount owed as taxes-Cannot recover second time-Actions dismissed-Income Tax Act, S.C. 1970-71-72, c. 63, s. 15(2) (as am. by S.C. 1980-81-82-83, c. 140, s. 7(1)).