Date: 20010202
Docket: ITA-5685-99
Citation: 2001 FCT 18
In the matter of the Income Tax Act
Between:
HER MAJESTY THE QUEEN,
Applicant,
- and -
TIMOTHY DOUGLAS LANGEVIN,
Respondent.
REASONS FOR ORDER
Muldoon, J.
[1] Timothy Douglas Langevin is alleged to owe the Government of Canada a large sum of money for unpaid income tax. The Minister has attempted to effect service of notice of his intentions to collect the sum owed, according to the affidavit of Gary Wong filed in these proceedings. Mr. Wong's enquiries indicate that the tax debtor is alive, even if not necessarily well. Mr. Langevin does not appear to be minded to pay up or settle with the Canadian Customs & Revenue Agency, and it would be easy to infer that he is succeeding in evading service of documents.
[2] C.C.R.A. has discovered that the tax debtor owns at least one valuable asset: a taxi operator's and owner's licence, which appears to be worth between $30,000 and $40,000, or somewhat in excess of his tax indebtedness of $33,387.34 (Cdn) from June 16, 1999 plus costs and bailiff's fees.
[3] The British Columbia Motor Carrier Commission, issuer of the tax debtor's taxicab licence, will not permit a transfer of the licence without receiving a transfer form signed by Mr. Langevin, since he is not now personally exploiting his licence. There is some elderly Ontario jurisprudence to the effect that a liquor vendor's licence cannot be seized under a writ: Walsh v. Walper (1901) III O.L.R. 158, and the Motor Carrier Board seems to adhere to that decision. Historically one cannot seize a licence (tab. 9) M.N.R's authorities: Frederick L. Foster ats William Tuz, creditor 519 at 525, because a licence is considered to be intangible personal property.
[4] Section 44 of this Court's statute provides:
| 44. Mandamus, injunction, specific performance or appointment of receiver -- In addition to any other relief that the Court may grant or award, a mandamus, injunction or order for specific performance may be granted or a receiver appointed by the Court in all cases in which it appears to the Court to be just or convenient to do so, and any such order may be made either unconditionally or on such terms and conditions as the Court deems just. |
[5] So when a person who ought to pay his income tax, in effect impoverishes all taxpayers who do pay, by making a favourable exception for himself and keeping his tax payments to himself, it appears to be unquestionably just to compel the defaulter to contribute some of his own personal property to relieve the taxpayers and to contribute to the commonwealth. The Minister of National Revenue moves (on notice the Minister attempted to serve on the tax defaulter) and did serve on the Motor Carrier Commission to have a receiver (the bailiff) appointed. Rule 375 runs as follows:
| 375.(1) Motion to appoint receiver -- On motion, a judge may appoint a receiver in any proceeding. |
| (2) Remuneration and security -- An order under subsection (10 shall set out the remuneration to be paid to, and the amount of security to be given by, the receiver. |
[6] That motion is granted.
[7] Rule 425 of the Act gives the following means:
| 425. Enforcement of order for payment of money -- An order for the payment of money may be enforced by |
| (d) the appointment of a receiver; . . . |
[8] As can be seen the M.N.R. is certainly not seeking to exclude the licence-issuing Motor Carrier Commission from these proceedings. Having been served, the Commission simply elected not to participate herein. The M.N.R's counsel brought to this Court's attention the decision of Mr. Justice Meredith of British Columbia in 336026 Ltd. v. 355398 B.C. Ltd. [1993] B.C.J. No.2472. Meredith, J. thought that particular situation illustrated a matter between the liquor control authorities and the plaintiff without the need of the Court's intervention. Here, the Motor Carrier Commission has been served with full notice of this proceeding, but does not appear before this Court. Because the tax debtor's taxicab licence is a valuable asset, this Court holds that it is not just that he should continue to enjoy it, while the rest of the taxpayers have to pay for his selfish default and lack of concern. It is just that a receiver should lawfully deprive the tax debtor of the value of that asset.
[9] The Minister's motion to appoint a receiver is allowed. John William Edward Bradshaw of Comox Valley Bailiffs Ltd. is now appointed as receiver, without bond or security, of M.C.C. taxi licence number 11566 currently held by Timothy Douglas Langevin. The receiver may sell the licence subject to the M.C.C.'s approval, and the receiver must apply to the Commission to approve the transfer of the licence to the purchaser. Further, the receiver shall exercise his powers granted hereunder to:
| - pay out the proceeds of sale of the taxi licence all amounts owing by Timothy Douglas Langevin under Certificate No. ITA-5685-99 issued by this Court on June 18, 1999, after deducting and paying to himself the reasonable fees and expenses incurred in carrying out his duties under this order; |
| - pay the balance of the proceeds, if any, of the sale of the taxi licence to Timothy Douglas Langevin; and |
| - apply to this Court for directions and guidance in the discharge of his duties. |
[10] No action at law, or in equity or other proceeding may be taken or continued against the receiver, as receiver, and no proceeding may be taken or continued in respect of the taxi licence without leave of this Court and the Motor Carrier Commission upon notice to the receiver, the Commission and any other parties to this proceeding.
(Sgd.) "F.C. Muldoon"
Judge
February 2, 2001
Vancouver, British Columbia
FEDERAL COURT OF CANADA
TRIAL DIVISION
NAMES OF COUNSEL AND SOLICITORS OF RECORD
| DOCKET: ITA-5685-99 |
| STYLE OF CAUSE: Her Majesty the Queen |
v.
Timothy Douglas Langevin
| PLACE OF HEARING: Vancouver, British Columbia |
| DATE OF HEARING: January 29, 2001 |
| REASONS FOR ORDER OF MULDOON, J. |
| DATED: February 2, 2001 |
APPEARANCES:
| Mr. R. Keith Reimer For the Applicant |
SOLICITORS OF RECORD:
Morris Rosenberg
Deputy Attorney
| General of Canada For the Applicant |