Salwa Abdalla v. Her Majesty the Queen
(Federal Court) (Civil) (By Leave)
Taxation - Income tax, Assessment - Taxation — Income Tax — Assessment — Federal Court of Appeal upholding decision finding “Agreement to be Bound and Waiver of Objection and Appeal Rights” constituted a valid and binding waiver — Whether Federal Court of Appeal’s application of civil insurance waiver test as set out in River Bungalows Ltd. v. Maritime Life Insurance Co.,  2 S.C.R. 490 is appropriate in tax context — Whether Federal Court of Appeal erred in finding that applicant provided a valid waiver at law by signing Agreement — Whether Federal Court of Appeal erred in finding that Crown did not bring any undue pressure upon applicant to sign Agreement — Income Tax Act, R.S.C., 1985, c. 1 (5th Supp.), s. 169(2.2).
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This matter came before the Tax Court of Canada by way of Notice of Motion by the Crown. The Crown sought to quash the appeal presented to the Tax Court of Canada by the applicant for the 2007 and 2009 taxation years, pursuant to s. 12 of the Tax Court of Canada Act and s. 169(2.2) of the Income Tax Act.
The Crown sought to quash the appeal on the basis that the applicant was bound by a lead appeal known as Mariano v. The Queen, 2015 TCC 244, pursuant to an “Agreement to be Bound and Waiver of Objection and Appeal Rights” (“Agreement”) she had signed.
The applicant took a position to the contrary indicating that the motion should not be granted because no valid consideration had been exchanged; CRA created conditions whereby consent was not fully informed; and the Agreement was obtained by way of undue pressure.
The Tax Court granted the motion and quashed the appeal. The Federal Court of Appeal dismissed the appeal.
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