Court File No.: T- 2275-04
Vancouver, British Columbia, Thursday, the 26th day of May, 2005
Present: THE HONOURABLE MR. JUSTICE SHORE
BETWEEN:
THE MINISTER OF NATIONAL REVENUE
Applicant
and
KENNETH WALTER HRAPPSTEAD
Respondent
____________________________________
ORDER
____________________________________
UPONapplication by the Applicant, the Minister of National Revenue (the "Minister"), to require the Respondent, Mr. Kenneth Walter Hrappstead, as he is known, ("Mr. Hrappstead") to appear before this Court to hear evidence with respect to an alleged contempt of court;
UPONhearing evidence presented by Mr. Jan Falkowski and Ms. Tiziana Hespe on behalf of the Applicant in addition to submissions of the Applicant with respect to the alleged contempt of court by Mr. Hrappstead, in accordance with Rule 467 of the Federal Court Rules, 1998;
UPONreviewing the various Orders and the Direction previously issued by this Court in these proceedings;
UPON Mr. Hrappstead failing to appear before this Court, despite having been properly served, as required by Rule 467 of the Federal Court Rules, 1998, a copy of the Order of Prothonotary Hargrave, dated April 12, 2005, to show cause for contempt of court and costs, a copy of the affidavit of Ms Tiziana Hespe sworn April 4, 2005 and a copy of the Order of Mr. Justice Beaudry, dated January 24, 2005;
AND UPON FINDING THAT:
(a) Mr. Hrappstead was aware of the Order of Mr. Justice Beaudry, dated January 24, 2005.
(b) Mr. Hrappstead is capable of complying with the Order.
(c) Mr. Hrappstead, with full knowledge and understanding of the Order, refused and continues to refuse to comply with the Order.
AND UPON accordingly, being satisfied, beyond a reasonable doubt, that Mr. Hrappstead is in contempt of the Order of Mr. Justice Beaudry, dated January 24, 2005, in that he failed to comply, within thirty (30) days after being served with the Order, with the requirement to provide information and documents served on him on March 3, 2004, pursuant to subsection 231.2(1) of the Income Tax Act, R.S.C. 1985, c.1 (5th Supp.);
AND UPON reviewing the possible penalties under Rule 472 of the Federal Court Rules, 1998, and making a determination in view of the evidence and all of the circumstances, surrounding the willful and contemptuous breach, as fully described in the evidence.
THIS COURT ORDERS THAT:
1. Mr. Hrappstead, as he is known, is found to be in contempt of the Order of Mr. Justice Beaudry, dated January 24, 2005, pursuant to Rule 466(1)(b) of the Federal Court Rules, 1998;
2. A fine of $4,000.00 (the "Fine") be imposed upon Mr. Hrappstead to be paid within thirty (30) days from the date of this Order;
3. Mr. Hrappstead is to pay costs on a solicitor-client basis at an amount fixed at $2,000.00 (the ACosts") within thirty (30) days from the date of this Order;
4. In view of the evidence and circumstances therein, if the Minister informs the Court by affidavit that payment of either of the Fine or the Costs has not been made within thirty (30) days from the date of this Order, this Court then imposes a sentence of fifteen (15) days imprisonment for default on the payment of the Costs and a consecutive sentence of imprisonment for default on the payment of the Fine to a total of thirty (30) days imprisonment[1];
5. Mr. Hrappstead provide the following information and documents (the "Information") sought by the Minister pursuant to section 231.2 of the Income Tax Act, R.S.C. 1985, c.1 (5th Supp.) within thirty (30) days from the date of this Order:
a. A complete list, including source names, address and amounts, of all income, gifts, loans or other sources of funds for Mr. Kenneth W. Hrappstead (also known as Kenneth Walter Hrappstead sometime carrying on business as North American Group & /or NAG).
b. A complete list of all Bank, Credit Union, offshore bank accounts including Bank of America or similar bank accounts for which Mr. Kenneth W. Hrappstead (also known as Kenneth Walter Hrappstead sometime carrying on business as North American Group & /or NAG) has signing authority.
c. A complete list of all promotions and investments by Mr. Kenneth W. Hrappstead (also known as Kenneth Walter Hrappstead sometimes carrying on business as North American Group & /or NAG); and
6. If the Minister informs the Court by affidavit that Mr. Hrappstead has failed to provide the Information, specified above, to the Minister within thirty (30) days from the date of this Order, then this Court imposes a sentence of fifteen (15) days imprisonment upon Mr. Hrappstead to be served consecutively with any sentence of imprisonment in respect of a sentence of imprisonment for a failure by Mr. Hrappstead to pay either the Fine or the Costs.
(Sgd.) "Michel M.J. Shore"
Judge