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Date: 20050628

Docket: T-1097-05

Citation: 2005 FC 912

BETWEEN:

                                            MINISTER OF NATIONAL REVENUE

                                                                                                                                          Applicant

                                                                        - and -

                                                        1384405 ONTARIO INC.

                                                                                                                                     Respondent

                                                        REASONS FOR ORDER

LEMIEUX J.:

[1]                This afternoon, I heard an ex parte motion, pursuant to section 225.2(2) of the Income Tax Act (the "Act") on behalf of the Minister of National Revenue (the "Minister"), that the Minister be authorized to commence any of the collection actions described in paragraphs 225.1(1)(a) to (g) of the Act in respect of a June 20, 2005 notice of assessment made pursuant to section 160 of the Act.


[2]                I authorized the Minister taking the collection action being satisfied that the assets of the respondent in 190 O'Connor Street (an office building) and adjacent parking lot (collectively "the assets") would be in jeopardy of imminent disappearance by way of a transfer of interest by the respondent to a separate but related entity known as 190 O'Connor Limited Partnership (the "Partnership").

[3]                I was informed by counsel for the Minister that proceedings were scheduled tomorrow before the Ontario Superior Court whereby the respondent is seeking an order which would temporarily force the Minister to lift its writ fieri facias (or writ of seizure and sale) against the Glenview Corporation ("Glenview") in order to enable the transfer by Glenview to the respondent of its interest in the assets leading to the subsequent transfer by the respondent to the Partnership.

[4]                I was satisfied the Minister had demonstrated the respondent's assets would likely be wasted if the lifting order was granted.

[5]                I relied upon the following jurisprudence:

(1)        Canada v. Golbeck, [1990] F.C.J. No. 852 (F.C.A.);

(2)        Canada (Minister of National Revenue) v. Services M.L. Marengère Inc., [2000] D.T.C. 6032; 176 F.T.R. 1;                                  

(3)        Deputy Minister of National Revenue v. Medjuck, 97 D.T.C. 5113;


(4)        Canada (Minister of National Revenue) v. Moss, 98 D.T.C. 6016; and

(5)        Canada (Minister of National Revenue) v. MacIver, 172 F.T.R. 273.

            "François Lemieux"

                                                                                                                                                                                                                                  

                                                                                                                                            J U D G E                 

OTTAWA, ONTARIO

JUNE 28, 2005


                                                             FEDERAL COURT

                           NAMES OF COUNSEL AND SOLICITORS OF RECORD

DOCKET:      T-1097-05

STYLE OF CAUSE:                        

                   MINISTER OF NATIONAL REVENUE v. 1384405 ONTARIO INC.

PLACE OF HEARING:                    Ottawa, Ontario

DATE OF HEARING:                       June 28, 2005

REASONS FOR ORDER :            Lemieux J.

DATED:                                              June 28, 2005

APPEARANCES:

Ms. April Tate                                                                                    

Ms. Carole Benoît                                                                                          APPLICANT

SOLICITORS OF RECORD:

John H. Sims Q.C.                                                                                         APPLICANT

Deputy Attorney General of Canada

           


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