1455257 Ontario Inc. v. The Queen, 2015 TCC 173, aff'd on different grounds 2016 FCA 100 -- summary under Section 242

By services, 28 November, 2015

The taxpayer was dissolved under s. 241 of the Ontario Business Corporations Act. The Minister assessed the taxpayer pursuant to s. 242. In response to the taxpayer's appeal at the behest of its former principal, the Minister applied to adjourn the appeal for 60 days to allow the taxpayer to be revived under s. 241(5) of the OBCA in order to proceed.

Lyons J granted the Minister's motion. Faced with conflicting authorities on whether s. 242 permits a dissolved corporation to defend against an action brought against it under that section (e.g. 460354 Ontario; Malamas, [2009] OJ No. 4726, 2009 CarswellOnt 6878 (Ont Sup Ct)), she found that GMC Distribution was more persuasive in considering that s. 242 does not permit defence without revival. The GMC line relied on a contextual interpretation while the Malamas line relied on an overly narrow textual interpretation (paras. 29-31).

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Topic
Other Legislation/Constitution - Ontario - Business Corporations Act - s. 242
Tagline
Ontario business corporation must be revived before it can defend against an assessment
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