Coopers & Lybrand Ltd. v. Canada
T-207-94
Pinard J.
13/2/97
15 pp.
Appeal from TCC decision dismissing plaintiff's appeal from assessment made against it on March 9, 1982, relating to source deductions not remitted to MNR-Plaintiff (C. & L.) acting as agent and mandatary for National Bank and Mercantile Bank pursuant to security-On October 27, 1981, Banks demanding that Canadian Admiral Corporation Ltd. (CAC) repay $40 million owing to them and giving it one week to do so-On November 4, 1981, plaintiff taking control and possession of majority of CAC's assets, including accounts receivable, cash in hand and bank accounts, in amount determined to be $1,522,573.45-Concerned banks giving plaintiff instructions to settle all prior wage claims by CAC's employees for period from October 26 to November 4, 1981, in consideration for each of employees signing assignment of wage claims in amount equal to amount paid-Payment to employees made by cheques bearing name of CAC and signature "Coopers & Lybrand, AgentBanque Nationale du Canada"-Source deductions totalling $163,404.56 not remitted to Receiver General of Canada either by plaintiff or by CAC-MNR issuing notice of assessment claiming balance of $186,008.01 from plaintiff-Issue whether Minister authorized to claim balance relying on ss. 153 and 227(9) of Income Tax Act-Plaintiff was person who paid wages to each of CAC employees concerned-Expression "any person" applies to agent such as plaintiff acting on behalf of creditor banks of employer CAC-What was paid to CAC employees on November 4, 1981 was wages owing-Each employee given cheque in amount equal to net wages, that is, gross wages less authorized deductions, including amounts withheld for income tax-Plaintiff satisfying requirements for deducting or withholding amounts laid down in Act, s. 153(1)-None of documents entered in evidence referring to "net wages" and nothing to prevent plaintiff from assuming responsibility for payment of gross wages by deducting or withholding prescribed amounts so they could be remitted to Receiver General and paying balance, net wages, to employees-Oral and documentary evidence clearly establishing plaintiff had authority or instructions to pay employees' net wages directly to them-Plaintiff not succeeding in rebutting strong presumption resulting from T-4 Supplementaries it prepared itself-Plaintiff directly responsible under Act, s. 153(1) for failing to remit to Receiver General prescribed amounts deducted or withheld from employees' wages for period in question, also liable under Act, s. 227(9)-Action dismissed-Income Tax Act, S.C. 1970-71-72, c. 63, ss. 153(1) (as am. by S.C. 1980-81-82-83, c. 140, s. 104(1)), 227(9) (as am. idem, s. 123(1)).