Date: 20010214
Docket: T-245-01
Neutral Citation: 2001 FCT 76
BETWEEN:
MINISTER OF NATIONAL REVENUE
Applicant
- and -
ZIAD ABU-TAHA
Respondent
REASONS FOR ORDER AND ORDER
McKEOWN J.
[1] The respondent has been charged with drug-related offences and the RCMP has seized approximately $270,000 in cash assets, pursuant to a search warrant issued by the Ontario Courts in accordance with the provisions of the Criminal Code of Canada. Counsel for the respondent has advised Crown counsel in charge of the prosecution that he intends to bring an application to the Ontario Courts to have some of the seized funds paid out to the respondent to cover living and legal expenses.
[2] The applicant Minister now makes a motion ex parte under section 225.2 of the Income Tax Act, R.S.C. 1985, c.1 (5th Supp.), as amended (the "Act") to authorize the Minister to take forthwith any of the actions described in paragraphs 225.1(1)(a) to (g) of the Act in respect of the tax debt of the respondent.
[3] In my view, this is a case where the Federal Court should defer to the Superior Court (Ontario). Under section 225.2 of the Act, both courts have jurisdiction to hear the applicant's application.
[4] However, the seizure of the monies by the RCMP was pursuant to a search warrant duly authorized by the Ontario Courts. The Superior Court (Ontario) is going to have to decide how the funds seized by the RCMP should be disposed of when the respondent's motion is heard. The Superior Court (Ontario) should not be faced with an order of another Court over which it has no jurisdiction in trying to decide the respondent's motion.
[5] It is important to note that the respondent's motion cannot be brought in the Federal Court. Indeed, the respondent's motion can only be brought in the Superior Court (Ontario), whereas the applicant's motion can be brought in either Court.
[6] Although I have jurisdiction to decide this application, in these circumstances it is in the interests of justice for me to exercise my discretion in order to defer to the jurisdiction of the Superior Court (Ontario).
ORDER
[7] The application is dismissed without prejudice to the applicant to bring a similar application in the Superior Court (Ontario).
"W. P. McKeown"
J.F.C.C.
Toronto, Ontario
February 14, 2001
FEDERAL COURT OF CANADA
Names of Counsel and Solicitors of Record
| COURT NO: T-245-01 |
| STYLE OF CAUSE: MINISTER OF NATIONAL REVENUE |
Applicant
| - and - |
| ZIAD ABU-TAHA |
Respondent
| DATE OF HEARING: MONDAY, FEBRUARY 12, 2001 |
| PLACE OF HEARING: TORONTO, ONTARIO |
REASONS FOR ORDER
| AND ORDER BY: McKEOWN J. |
DATED: WEDNESDAY, FEBRUARY 14, 2001
APPEARANCE BY: Ms. Nancy Arnold
ex parte
For the Applicant
| SOLICITOR OF RECORD: Morris Rosenberg |
| Deputy Attorney General of Canada |
| For the Applicant |
| FEDERAL COURT OF CANADA |
Date: 20010214
Docket: T-245-01
BETWEEN:
MINISTER OF NATIONAL REVENUE
Applicant
- and -
ZIAD ABU-TAHA
Respondent
REASONS FOR ORDER
AND ORDER