Quebec ( Deputy Minister of Revenue ) v. Couverture C.G.L. Inc.
GST-100-94
Denault J.
17/2/95
3 pp.
Motion to oppose seizure by Quebec Deputy Minister of Revenue against defendant company pursuant to Excise Tax Act when latter failed to reimburse taxes collected -- Applicant company, having sole shareholder and director, one Latouche, ceased operations -- After company closed down, Latouche's wife Giroux founded defendant company, C.G.L., of which sole shareholder and director -- Giroux hired Latouche to operate business -- Additionally, applicant company placed all stock and equipment at disposal of C.G.L., without rental or loan agreement to this effect -- C.G.L. accumulated many debts and finally lost G.S.T. and Q.S.T. number when failed to pay Minister amount required to pay -- Latouche then incorporated second company in which sole director and shareholder -- New company used applicant company's equipment and assets -- New company replaced C.G.L. for all practical purposes, performing its contract and collecting money for G.S.T. and Q.S.T. without having registration certificate-Latouche both alter ego of applicant company and prime mover in C.G.L. -- Incorporation of various companies by Latouche, sometimes in own name and sometimes that of wife, manifestly done to deceive creditors, avoid payment of debts and avoid having to reimburse money collected as trustee but which he neglected to reimburse-Applicant company's opposition abuse of right and attempt by prime mover in both defendant and applicant to avoid obligations-Applicant cannot set legal personality of corporate body other than defendant as means of objecting to seizure and sale of property seized -- Excise Tax Act, R.S.C., 1985, c. E-15.