October 07, 2011

Her Majesty the Queen (Applicant) v. E. Stuart Ritchie and Varinder Ghai (Respondents)

93 DTC 5160
Federal Court of Appeal
March 24, 1993

(Court File Nos. A-675-91 and A-676-91.)

Payment of tax — Whether taxpayers liable to make instalment payments of tax with interest — Income Tax Act, S.C. 1970-71-72, c. 63, ss. 153(2), 156(1) and 161(2).

The Crown applied under section 28 of the Federal Court Act to set aside a decision of the Tax Court of Canada.

Held: The Crown’s application was granted. The Crown’s application must succeed for substantially the same reasons as those given by Garon, J.T.C.C. in Gorse v. Queen (unreported). The taxpayers were not persons to whom subsection 153(2) of the Act applied. They were therefore required by subsection 156(1) of the Act to make instalment payments of tax and their failure to do so rendered them liable to pay interest under subsection 161(2) on all unpaid instalments. The matter was accordingly referred back to the Tax Court for a decision on that basis.