Prodor v. Canada
T-1117-94
Tremblay-Lamer J.
18/6/97
15 pp.
Preliminary determination of question of law-MNR certifying amounts payable by plaintiff for income taxes, interest, penalties in respect of 1988, 1989, 1990, 1991 pursuant to Income Tax Act, s. 223(2)-Certificates registered in Federal Court pursuant to s. 223(3), giving registered certificates same force, effect as judgments-Certificates registered as judgments against plaintiff's interest as mortgagee in land title office-Whether applicable interest under s. 223(3) rate prescribed in Income Tax Act, s. 161 or in Federal Court Act, s. 37 (together with provisions of British Columbia Court Order Interest Act)-S. 223(2) initially referred to "interest . . . as provided for in this Act"-In 1988 renumbered to s. 223(3), amended to "interest . . . as provided by law"-S. 223(1) also amended to include amounts payable under Unemployment Insurance Act, Canada Pension Plan, provincial statutes-In 1994 changed to "interest . . . as provided by the statute or statutes referred to in subsection (1) under which the amount is payable"-Although arguable Parliament widening scope of s. 223, that 1988 amendment also including first reference to additional federal and provincial statutes, indicating intention interest be calculated according to specific statute under which debt arising-Conclusion supported by technical note issued by Department of Justice that amendment to clarify that applicable interest rate provided for by statute under which amount certified payable, rather than interest as provided under Federal Court Act-Otherwise taxpayers subject of collection measures receiving benefit of lower interest rates than those applied to compliant taxpayers-S. 223 aimed at facilitating collection of amounts payable under Income Tax Act, other statutes mentioned therein-Not purporting to confer unjustified advantages upon non-compliant taxpayers-Words "shall be deemed" added in 1988 to s. 223 to give registered certificates additional meaning, but only for specific purpose i.e. to take proceedings against debts on certificate as if judgment of Federal Court-Inclusion of "shall be deemed" necessary because New Brunswick Court of Appeal decision casting doubt on whether New Brunswick enforcement of judgment legislation applied to such certificates-Registered certificate not considered Federal Court judgment in general sense-Minister not considered Federal Court judgment creditor-Minister never availed himself of Federal Court Act, but commenced collection proceedings pursuant to Income Tax Act-Application of burden/benefits exception favouring application of provisions of Income Tax Act-Applicable interest rate stipulated in Income Tax Act, s. 161-Income Tax Act, S.C. 1970-71-72, c. 63, ss. 161 (as am. by S.C. 1994, c. 7, Sch. VIII, s. 93), 223 (as am. by S.C. 1988, c. 55, s. 168; 1994, c. 7, Sch. VIII, s. 129)-Federal Court Act, R.S.C., 1985, c. F-7, s. 37 (as am. by S.C. 1990, c. 8, s. 9)-Court Order Interest Act, R.S.B.C. 1979, c. 76, ss. 7(1) (as am. by S.B.C. 1982, c. 46, s. 11; c. 47, s. 5), 9(1) (as am. by S.B.C. 1982, c. 46, s. 11; c. 47, s. 5).