March 06, 2012

Sentinel Hill Productions (1999) Corporation, in its capacity as designated member of Sentinel Hill 1999 Master Limited Partnership, and Robert Strother (Appellants) v. Her Majesty the Queen (Respondent)

2008 DTC 2544
Neutral Citation: 2007 TCC 742
Tax Court of Canada
Date: December 19, 2007

Amended Date: January 7, 2008
Court File No. 2006-3455(IT)G (General Procedure)

Motion to strike — Whether Minister’s motions to strike paragraphs from taxpayers’ Notices of Appeal should be granted — Income Tax Act, R.S.C. 1985, c. 1 (5th Supp.), s. 237.1 — Tax Court of Canada Rules (General Procedure), SOR/90-688a, s. 53.

Facts: The Minister filed motions seeking an order from the Court to strike out paragraphs from the taxpayers’ further amended Notices of Appeal. The sections of the Notices of Appeal concerned allegations that the taxpayers had made investments in certain limited partnerships, which were the subject of the Minister’s assessments, based on the assurances contained in advance rulings issued by the CRA, and that the transactions at issue conformed to the advance rulings.

Held: The motions were dismissed. The requirements for striking paragraphs from the taxpayers’ Notices of Appeal under section 53 of the Tax Court of Canada Rules were not met. It was not plain and obvious that the pleadings at issue were wholly without merit so as to constitute an abuse of the Court’s process. It was the function of the trial judge hearing the 2008 DTC 2544 page 2545 evidence to determine the correctness and relevancy of the allegations of fact and statements of law contained in the Notices of Appeal.