Tax Court of Canada


Unanswered questions not irrelevant, abusive or designed to embarrass or harass party


Motion by Crown for order compelling taxpayer to provide written responses to examinations for discovery queries conducted by written questions. Appeal related to determination under s. 55(2) of Income Tax Act (Can.), as to whether transaction or series of transactions was entered into for purposes of reducing amount of capital gain in taxpayer’s hands. Motion granted. On basis of pled assumptions, series of transactions were not patently unrelated nor prima facie lacking in nexus to application and operation of s. 55(2). Based upon principles established in 2004 case, it was clear that unanswered questions on face of pleadings were not patently irrelevant nor were they abusive or designed to embarrass or harass party or to delay case. Order was made that taxpayer be compelled to provide answers to unanswered questions and such responses be delivered within 30 days from date of issuance of decision and order.

D & D Livestock Ltd. v. Canada

(June 12, 2012, T.C.C., Bocock J., File No. 2011-137(IT)G) 217 A.C.W.S. (3d) 722 (9 pp.).

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