Tax Court of Canada


Registrant had attitude of indifference or negligence toward tax obligations

Application by registrant for order that request for extension be deemed valid. Registrant was status Indian who operated convenience store and gas station on reserve. Mother of registrant operated facility. Registrant did not file quarterly returns for provincial sales tax and GST as required. Auditor for Revenu Quebec sent requirement to provide documents in 2009. Revenu Quebec began assessment proceedings in 2009. Garnishment orders were issued. Registrant sought to become involved in existing proceedings in Quebec Superior Court regarding liability for taxes by persons in similar circumstances. In May 2010, registrant brought application to extend time to file objection to notice of assessment, which was rejected. Application dismissed. Aboriginal rights of registrant were not violated. Excise Tax Act (Can.), only required collection and remittance of GST and did not impose tax on those with Indian status. Section 87 of Indian Act (Can.), does not release individuals with Indian status from obligation to collect and remit GST when they are selling goods in commercial mainstream to non-Indian consumers. Illness did not prevent registrant and mother from filing objection. Business still operated during relevant period. Attempt to join proceedings in Quebec Superior Court did not show bona fide intention to object to assessment in current proceedings, and were not undertaken within 90 days of notice of assessment. Registrant’s reaction was prompted by demands for payment and garnishment orders. Registrant had attitude of indifference or negligence towards legal tax obligations.

Diome v. Canada

(Feb. 15, 2012, T.C.C., Angers J., File No. 2011-307(GST)APP) 212 A.C.W.S. (3d) 1059 (11 pp.).

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