Ressources Orco Inc. v. Canada
T-2705-93
Noël J.
26/9/94
9 pp.
Application to dismiss plaintiffs' action pursuant to R. 419(1)(a), (c) and (f)-By their action plaintiffs sought declaration regarding interpretation and application of certain provisions of Income Tax Act-Plaintiffs, who work in field of mining exploration, each made public appeal for savings by issuing flow-through shares-Renounced exploration expenses to investors-Plaintiffs always maintained they correctly calculated exploration expenses and asked Court to rule on point-Defendant contended Tax Court of Canada has questions underlying declaratory action before it and only Tax Court has jurisdiction to decide them-Supreme Court of Canada has on several occasions held when disputed point before lower court no basis for declaratory action-Court will not interfere by declaratory action in jurisdiction assigned to specialized tribunal, even if has power to do so-Non-intervention rule limited to situations where parties are same-Though parties in each proceeding not same, effect of tax legislation at issue that legal interests of investors and plaintiffs identical, namely maintaining investors' right to deduct expenses in question-From tax standpoint only legal interests of investors at issue-Plaintiffs do not have sufficient interest to ask Court to make declaratory judgment solely for purpose of determining tax liability of investors-Question regarding calculation of exploration expenses same in each of cases in Tax Court so that single decision in representative case will suffice to dispose of all cases-Application allowed-Federal Court Rules, C.R.C., c. 663, R. 419-Income Tax Act, S.C. 1970-71-72, c. 63.