29:
472:
not to be a criminal proceeding in nature, as "the purpose of this proceeding is to promote honesty and deter gross negligence, or worse, on the part of preparers, qualities that are essential to the self-reporting system of income taxation assessment" and "hile some regulatory penalties are imposed
288:
review her letter for accuracy, she proceeded to provide the letter to the promoters, knowing it would form part of their information package. The letter stated that the transactions would be implemented based on supporting documents that she had been provided with and had reviewed. However, she had
440:
declares that, in general, "proceedings of an administrative—private, internal or disciplinary—nature instituted for the protection of the public in accordance with the policy of a statute are not penal in nature." To determine whether a proceeding is criminal or administrative in nature, the Court
392:
as requiring a mandatory notice of a constitutional question, as it "gives governments an opportunity to present evidence justifying the constitutionality of the law and permits all parties to challenge that evidence," and "allowing a party unilaterally to make an end-run around notice requirements
126:
The SCC has a well‑established discretion, albeit one that is narrow and should be exercised sparingly, to address the merits of a constitutional issue when proper notice of constitutional questions has been given in that Court, even though the issue was not properly raised in the courts below.
332:
The TCC held that s. 163.2 was "by its very nature a criminal proceeding" and "involve a sanction that is a true penal consequence," and in consequence vacated the assessment. Protests by the Crown that the constitutional issue was raised without proper notice were overruled by the trial judge
476:
not to attract a true penal consequence, as "high administrative monetary penalties required to encourage compliance with the administrative regime. The relevant question is not the amount of the penalty in absolute terms, it is whether the amount serves regulatory rather than penal
452:
the "criminal in nature test" identifies provisions that are criminal because
Parliament or the legislature has provided for proceedings whose attributes and purpose show that the penalty is to be imposed via criminal proceedings;
379:
By a unanimous decision, the appeal was dismissed. However, the
Justices split 4:3 as to whether the constitutional issue should have been considered without prior notice, and only the majority addressed the constitutional issue.
355:
the TCC and the FCA, if asked to do so, could have exercised their discretion to adjourn the appeal to allow a notice to be served to address that matter, but
Guindon did not make that request in either of the courts below;
961:
473:
without consideration of the person’s state of mind, in other cases it is rational that the state would only wish to impose a penalty on those who engage in misconduct knowingly, recklessly, or with a particular intention."
134:
are of an administrative nature. They are not criminal in nature and do not lead to the imposition of true penal consequences. Therefore, G is not a person "charged with an offence" and accordingly, the protections under
533:
The absence of s. 11 protection of the presumption of innocence is of great concern, although it is conceded that the legal system may grind to a halt if every allegation of misconduct could be tested in a full criminal
540:
The FCA provided more guidance in its judgment as to when an administrative penalty would be considered disproportionate, and it would have been helpful if the SCC had expanded on the point. However, in 2012 the
292:
A charity with which
Guindon was connected agreed to become the recipient of the promoted timeshares. In reality, no timeshare units were created and no transfers from the donors to the charity occurred. The
529:
is not the only source of judicial protection in administrative proceedings, as procedural and substantive challenges on judicial review can ensure that the administration stays within the boundaries of
990:
136:
608:
321:
220:
393:
by claiming that demonstrably constitutional arguments are not in fact constitutional arguments, rewards linguistic tactics at the expense of the public interest." The majority held that
973:
419:
S. 11 protection is available to those charged with criminal offences, not those subject to administrative sanctions, according to the test the Court has devised in
1112:
946:
620:
448:
tests were unclear, circular in nature or not properly accounting for the modern context of administrative monetary penalties were unfounded, as:
225:
141:
1097:
545:
gave a reasoned evaluation for a monetary penalty that arose from a securities proceeding, which could be useful in future jurisprudence.
456:
the "true penal consequence test" looks at whether an ostensibly administrative or regulatory provision nonetheless engages s. 11 of the
1117:
1102:
1003:
441:
must examine "(1) the objectives of the ; (2) the purpose of the sanction; and (3) the process leading to imposition of the sanction."
1107:
497:
The integrity and honesty of advisors, planners and tax preparers is equally important to the integrity of the self- reporting system.
229:. It also provides guidance on when the Court will consider constitutional issues when such had not been argued in the lower courts.
341:
401:'s judgment did not express a final opinion on the point. In addition, there have been numerous instances both before and after
519:
298:
280:
on the tax consequences of this program on the basis of a precedent provided by the promoters. Although recommending that a
504:
are such that, at least in general terms, very significant penalties will not be prohibited by constitutional principles.
294:
102:
642:
258:
344:
allowed the appeal, set aside the TCC's judgment, and restored the assessment against
Guindon. In his ruling,
804:
651:
542:
265:
216:
34:
840:
1079:
352:
Guindon’s failure to serve notice of a constitutional question was fatal to the Tax Court’s jurisdiction;
708:
565:
522:
nor the issue of the burden of proof, but the matter has already been explored in a 2015 case in Quebec.
297:
later disallowed the charitable donation tax credits claimed by the donors, and
Guindon was assessed an
494:
If constitutional litigation is to be conducted, procedural requirements as to notice must be followed.
94:
86:
28:
969:
868:
212:
192:
305:
1026:
962:"Supreme Court of Canada upholds the constitutional validity of administrative monetary penalties"
687:
682:
246:
197:
573:
Spiro, Peter S. (2013). "Narrowing the Gap between
Regulatory and Criminal Offences in Canada".
512:
is only a first step in the development of the case law concerning administrative proceedings:
586:
578:
574:
269:
537:
It will be difficult to challenge other AMPs imposed in the absence of procedural safeguards.
835:
421:
313:
637:
599:
301:
in 2008 for each of the tax receipts disallowed, amounting in total to almost $ 600,000.
558:
334:
1091:
345:
60:
947:"What the Supreme Court of Canada Has to Say About The Income Tax Act and Penalties"
398:
219:
on the distinction between criminal and regulatory penalties, for the purposes of
181:
McLachlin CJ and Côté J took no part in the consideration or decision of the case.
285:
281:
238:
432:
a conviction in respect of the offence may lead to a true penal consequence.
407:
254:
1049:
1034:
277:
242:
518:
It does not discuss the defences available against the imposition of
363:
is not a criminal offence and therefore does not engage s. 11 of the
249:
donation program which was said to operate in the following manner:
1027:"Tax preparer penalties not criminal sanction: The SCC judgment in
444:
In the present case, the Court declared that criticisms that the
486:
Several practical consequences were immediately apparent in
613:
Protection to Tax
Adviser Hit with a Huge Monetary Penalty"
168:
Rothstein and
Cromwell JJ, joined by Moldaver and Gascon JJ
388:
While the minority considered the Court's prior ruling in
1082: at par. 52, 55, 110 OR (3d) 492 (29 March 2012)
425:, which declares that a matter falls under s. 11 where;
405:
where the Court has addressed constitutional questions
1050:"Way paved for more fines given SCC penalty decision"
371:
Leave to appeal to the SCC was granted in June 2013.
960:
Gagné, Michel; Frémont, Catherine (August 4, 2015).
748:
746:
744:
272:
greater than their cash payment for the timeshares.
185:
172:
164:
159:
154:
117:
109:
77:
69:
59:
49:
42:
21:
429:by its very nature it is a criminal proceeding, or
130:Civil penalty proceedings under s. 163.2 of the
97: (2 October 2012). Leave to appeal granted,
460:because it may result in punitive consequences.
264:The participants would donate these units to a
253:Each participant in the program would acquire
245:law, was approached in 2001 by promoters of a
176:Abella and Wagner JJ, joined by Karakatsanis J
8:
671:under which the penalties had been assessed
636:Wilkie, J. Scott; Hogg, Peter W. (2015).
276:Guindon agreed, for a fee, to provide an
987:Excavation René St-Pierre Inc. c Québec
801:Eaton v Brant County Board of Education
701:
664:
464:In the case at bar, s. 163.2(4) of the
390:Eaton v Brant County Board of Education
304:Guindon appealed the assessment to the
289:not reviewed the supporting documents.
226:Canadian Charter of Rights and Freedoms
1076:Rowan v. Ontario Securities Commission
638:"Tax Law with the Larger Legal System"
595:
584:
559:"IC 01-1: Third-Party Civil Penalties"
18:
752:
237:Guindon, a lawyer who specialized in
99:Julie Guindon v Her Majesty the Queen
54:Julie Guindon v Her Majesty The Queen
7:
1048:Schmitz, Cristin (September 2015).
945:Del Bigio, Greg (August 19, 2015).
843:, 2 SCR 541 (19 November 1987)
709:SCC Case Information - Docket 35519
89: (12 June 2013), setting aside
871:, 3 SCR 737 (14 October 2004)
807:, 1 SCR 241 (6 February 1997)
508:Commentators generally agree that
308:, submitting that s. 163.2 of the
14:
1056:. Toronto: LexisNexis Canada Inc.
1113:Canadian administrative case law
200:1985, c. 1 (5th Supp.), s. 163.2
27:
299:administrative monetary penalty
1025:Sorenson, John (August 2015).
316:, and thus was subject to the
215:is a landmark decision of the
1:
1098:Supreme Court of Canada cases
1002:Daly, Paul (August 3, 2015).
1012:administrativelawmatters.com
295:Minister of National Revenue
16:Supreme Court of Canada case
1134:
1118:Wills and trusts in Canada
1103:Canadian taxation case law
320:protection afforded under
1108:2015 in Canadian case law
966:canadianenergylawblog.com
257:units of a resort in the
190:
180:
122:
43:Hearing: 5 December 2014
26:
643:Osgoode Hall Law Journal
607:Spiro, Peter S. (2015).
259:Turks and Caicos Islands
711:Supreme Court of Canada
683:Tax Court of Canada Act
652:Osgoode Hall Law School
543:Ontario Court of Appeal
397:was not conclusive, as
384:Discretion of the Court
342:Federal Court of Appeal
217:Supreme Court of Canada
35:Supreme Court of Canada
976:on September 10, 2015.
680:as required under the
500:The objectives of the
446:Wigglesworth/Martineau
411:without prior notice.
45:Judgment: 31 July 2015
1004:"It's Just (a) Fine:
949:. Thorsteinssons LLP.
690:1985, c. T-2, s. 19.2
566:Canada Revenue Agency
105: (20 March 2014).
568:. 18 September 2001.
623:on 7 September 2015
415:Engagement of s. 11
306:Tax Court of Canada
91:Guindon v The Queen
883:, par. 22, citing
1006:Guindon v. Canada
970:McCarthy TĂ©trault
594:Missing or empty
270:fair market value
243:wills and estates
204:
203:
113:Appeal dismissed.
103:2014 CanLII 12480
1125:
1083:
1073:
1067:
1064:
1058:
1057:
1045:
1039:
1038:
1022:
1016:
1015:
999:
993:
991:2015 QCTAQ 02386
984:
978:
977:
972:. Archived from
957:
951:
950:
942:
936:
933:
927:
924:
918:
915:
909:
906:
900:
894:
888:
878:
872:
862:
856:
850:
844:
836:R v Wigglesworth
832:
826:
823:
817:
814:
808:
798:
792:
789:
783:
780:
774:
771:
765:
762:
756:
750:
739:
736:
730:
727:
721:
718:
712:
706:
691:
678:
672:
669:
655:
632:
630:
628:
619:. Archived from
603:
597:
592:
590:
582:
569:
563:
422:R v Wigglesworth
359:s. 163.2 of the
328:The courts below
314:criminal offence
208:Guindon v Canada
155:Court membership
83:Canada v Guindon
31:
22:Guindon v Canada
19:
1133:
1132:
1128:
1127:
1126:
1124:
1123:
1122:
1088:
1087:
1086:
1074:
1070:
1065:
1061:
1054:The Bottom Line
1047:
1046:
1042:
1024:
1023:
1019:
1001:
1000:
996:
985:
981:
959:
958:
954:
944:
943:
939:
934:
930:
925:
921:
916:
912:
907:
903:
895:
891:
879:
875:
865:Martineau v MNR
863:
859:
851:
847:
833:
829:
825:SCC, par. 15-39
824:
820:
816:SCC, par. 92-97
815:
811:
805:1997 CanLII 366
799:
795:
790:
786:
781:
777:
772:
768:
763:
759:
751:
742:
737:
733:
728:
724:
719:
715:
707:
703:
699:
694:
679:
675:
670:
666:
662:
635:
626:
624:
606:
593:
583:
572:
561:
557:
554:
552:Further reading
484:
438:Martineau v MNR
417:
386:
377:
330:
235:
150:
44:
38:
17:
12:
11:
5:
1131:
1129:
1121:
1120:
1115:
1110:
1105:
1100:
1090:
1089:
1085:
1084:
1068:
1059:
1040:
1017:
1008:, 2015 SCC 41"
994:
979:
952:
937:
928:
919:
910:
901:
889:
873:
857:
845:
841:1997 CanLII 41
827:
818:
809:
793:
784:
775:
766:
757:
740:
731:
722:
713:
700:
698:
695:
693:
692:
673:
663:
661:
658:
657:
656:
633:
604:
570:
553:
550:
549:
548:
547:
546:
538:
535:
531:
523:
506:
505:
502:Income Tax Act
498:
495:
483:
480:
479:
478:
474:
462:
461:
454:
434:
433:
430:
416:
413:
385:
382:
376:
373:
369:
368:
357:
353:
329:
326:
310:Income Tax Act
278:opinion letter
274:
273:
262:
234:
231:
202:
201:
193:Income Tax Act
188:
187:
183:
182:
178:
177:
174:
173:Concur/dissent
170:
169:
166:
162:
161:
157:
156:
152:
151:
149:
148:
147:
146:
132:Income Tax Act
123:
120:
119:
115:
114:
111:
107:
106:
79:
75:
74:
71:
67:
66:
63:
57:
56:
51:
50:Full case name
47:
46:
40:
39:
32:
24:
23:
15:
13:
10:
9:
6:
4:
3:
2:
1130:
1119:
1116:
1114:
1111:
1109:
1106:
1104:
1101:
1099:
1096:
1095:
1093:
1081:
1080:2012 ONCA 208
1077:
1072:
1069:
1063:
1060:
1055:
1051:
1044:
1041:
1036:
1032:
1030:
1021:
1018:
1013:
1009:
1007:
998:
995:
992:
988:
983:
980:
975:
971:
967:
963:
956:
953:
948:
941:
938:
932:
929:
923:
920:
914:
911:
905:
902:
898:
893:
890:
886:
882:
877:
874:
870:
866:
861:
858:
854:
849:
846:
842:
838:
837:
831:
828:
822:
819:
813:
810:
806:
802:
797:
794:
788:
785:
779:
776:
770:
767:
761:
758:
754:
749:
747:
745:
741:
735:
732:
726:
723:
717:
714:
710:
705:
702:
696:
689:
685:
684:
677:
674:
668:
665:
659:
653:
649:
645:
644:
639:
634:
622:
618:
614:
612:
605:
601:
588:
580:
576:
571:
567:
560:
556:
555:
551:
544:
539:
536:
532:
528:
524:
521:
517:
516:
515:
514:
513:
511:
503:
499:
496:
493:
492:
491:
489:
481:
475:
471:
470:
469:
467:
459:
455:
451:
450:
449:
447:
442:
439:
436:In addition,
431:
428:
427:
426:
424:
423:
414:
412:
410:
409:
404:
400:
396:
391:
383:
381:
374:
372:
366:
362:
358:
354:
351:
350:
349:
347:
343:
338:
336:
327:
325:
323:
319:
315:
311:
307:
302:
300:
296:
290:
287:
283:
279:
271:
267:
263:
260:
256:
252:
251:
250:
248:
244:
240:
232:
230:
228:
227:
222:
218:
214:
210:
209:
199:
195:
194:
189:
184:
179:
175:
171:
167:
163:
160:Reasons given
158:
153:
145:do not apply.
144:
143:
138:
133:
129:
128:
125:
124:
121:
116:
112:
108:
104:
100:
96:
92:
88:
84:
80:
78:Prior history
76:
72:
68:
64:
62:
58:
55:
52:
48:
41:
37:
36:
30:
25:
20:
1075:
1071:
1066:FCA, par. 44
1062:
1053:
1043:
1028:
1020:
1011:
1005:
997:
986:
982:
974:the original
965:
955:
940:
935:SCC, par. 81
931:
926:SCC, par. 72
922:
917:SCC, par. 62
913:
908:SCC, par. 49
904:
896:
892:
887:, par. 23-24
885:Wigglesworth
884:
880:
876:
864:
860:
853:Wigglesworth
852:
848:
834:
830:
821:
812:
800:
796:
791:SCC, par. 12
787:
778:
773:TCC, par. 53
769:
760:
734:
725:
716:
704:
681:
676:
667:
647:
641:
627:21 September
625:. Retrieved
621:the original
616:
610:
609:"SCC Denies
526:
509:
507:
501:
487:
485:
465:
463:
457:
445:
443:
437:
435:
420:
418:
406:
402:
394:
389:
387:
378:
370:
364:
360:
339:
331:
317:
309:
303:
291:
275:
236:
224:
207:
206:
205:
191:
186:Laws applied
140:
131:
98:
95:2012 TCC 287
90:
87:2013 FCA 153
82:
81:APPEAL from
53:
33:
869:2004 SCC 81
782:SCC, par. 9
764:SCC, par. 9
738:SCC, par. 6
729:SCC, par. 7
720:SCC, par. 6
617:thecourt.ca
534:proceeding.
348:held that:
213:2015 SCC 41
65:2015 SCC 41
1092:Categories
753:Spiro 2015
697:References
654:: 460–490.
596:|url=
477:purposes."
468:was held:
375:At the SCC
346:Stratas JA
312:created a
286:accountant
282:tax lawyer
233:Background
70:Docket No.
899:, par. 24
897:Martineau
881:Martineau
855:, par. 21
530:legality.
399:Sopinka J
255:timeshare
247:leveraged
61:Citations
1035:Gowlings
587:cite web
335:BĂ©dard J
165:Majority
1078:,
1029:Guindon
867:,
839:,
803:,
611:Charter
579:2366435
527:Charter
510:Guindon
488:Guindon
458:Charter
408:de novo
365:Charter
318:Charter
284:and an
266:charity
223:of the
211:,
142:Charter
139:of the
118:Holding
101:,
93:,
85:,
688:R.S.C.
577:
482:Impact
239:family
198:R.S.C.
110:Ruling
73:35519
660:Notes
650:(2).
562:(PDF)
403:Eaton
395:Eaton
268:at a
137:s. 11
629:2015
600:help
575:SSRN
525:The
520:AMPs
340:The
322:s.11
241:and
221:s.11
466:ITA
453:and
361:ITA
356:and
1094::
1052:.
1033:.
1010:.
989:,
968:.
964:.
743:^
686:,
648:52
646:.
640:.
615:.
591::
589:}}
585:{{
564:.
490::
337:.
324:.
196:,
1037:.
1031:"
1014:.
755:.
631:.
602:)
598:(
581:.
367:.
261:.
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