Olympia Interiors Ltd. v. Canada
T-1436-92
MacKay J.
8/4/99
52 pp.
Action against Crown for damages and declaratory relief for alleged malicious prosecution, negligence, misfeasance and abuse of authority in relation to means taken to assess and collect taxes under Excise Tax Act, including ultimately stayed criminal prosecution, allegedly breaching plaintiffs' Charter, ss. 7, 8, 11, 12 and 15 rights-Olympia designed, manufactured and installed customized architectural drapes and window coverings for commercial premises-Deduction allowance worked out between Olympia and Excise Tax Branch for purposes of calculation of sales and tax payable by licensees providing manufactured products at cost including freight and installation costs-Individual plaintiff testifying told by Revenue Canada in 1982 to file "nil returns" pending determination of deduction values-While attempting to have established more satisfactory installation deduction rate in early 1985, Olympia's federal sales tax returns withheld-By fall of 1985, Revenue Canada Special Investigation Unit involved in review of Olympia's operations, serving Ministerial Letters of Requirement requiring production of company's records to assist audit and compliance section of Department-Also initiated investigations concerning possible tax evasion or criminal fraud activities from failure to account for and to pay taxes due-Action dismissed-Plaintiffs have not established absence of reasonable and probable cause for bringing action-Crown servants concerned had reasonable and probable cause for commencing and proceeding with criminal charges-No evidence of malice on part of any Crown servant-No basis to plaintiffs' allegation that criminal prosecution abuse of process as used to help collecting civil remedy, taxes, interest and financial penalty outstanding-No evidence to that effect-No abuse of process-Evidence not supporting claim for abuse of authority-No evidence Revenue Canada special investigator acted maliciously or took action without authority-Allegation of misfeasance or abuse of authority not supported by evidence-No evidence of negligence on part of prosecutor-Manager of Technical Services Unit did not act negligently by revoking freight and installation rate; rather, acting pursuant to valid legislative authority-No conspiracy as no evidence of agreement between two or more public servants herein to injure plaintiffs-No breach of Charter, s. 7 (right to life, liberty and security of person): not applicable to corporate plaintiff; applicable to physical, not economic liberty-No breach of Charter, s. 8 (right to be secure against unreasonable search or seizure): search authorized by validly issued warrant; search not carried out in unreasonable manner; records retained for reasonable length of time-No breach of Charter ss. 11 (criminal process), 12 (right not to be subjected to cruel and unusual punishment)-No unreasonable delay-No breach of Charter, s. 15 (equality rights)-No evidence Revenue Canada special investigator acted or motivated in acting on some discriminatory ground within Charter, s. 15(1)-Costs to defendant on usual party and party basis-Canadian Charter of Rights and Freedoms, being Part I of the Constitution Act, 1982, Schedule B, Canada Act 1982, 1982, c. 11, (U.K.) [R.S.C., 1985, Appendix II, No. 44], ss. 7, 8, 11, 12, 15-Excise Tax Act, R.S.C. 1970, c. E-13.