Entreprises Ludco Ltée v. Canada

T-742-93 / T-743-92 / T-744-93 / T-745-93

Dubé J.

3/12/93

Application to strike certain paragraphs of plaintiffs' statement of claim on ground pleadings disclosed no reasonable cause of action (Rule 419(1)(a)), immaterial or redundant (Rule 419(1)(b)) and may prejudice, embarrass or delay fair trial of action (Rule 419(1)(d)) -- From 1977 to 1979 plaintiffs purchased shares in companies located abroad -- As they had borrowed money and paid interest they claimed interest paid on loans as deduction -- By reassessments for 1981 to 1985 taxation years Minister of National Revenue held interest expense not deductible within meaning of Income Tax Act, s. 20(1)(c)-Reassessments in question appealed to Tax Court of Canada, which upheld them -- Plaintiffs did not confine themselves to remedies expressly mentioned in Act, s. 177 but also sought judgment holding that reassessments in question invalid -- In application to strike, Court must consider allegations of fact contained in pleadings as proven -- Applicant must establish clearly pleadings disclosed no reasonable cause of action, which failed to do herein -- Plaintiffs' arguments inadmissible -- Courts have clearly held that contrary to arguments of plaintiffs, Minister not bound by preceding assessments, previous policies, his comments or those of his subordinates or treatment he gives or has given to other taxpayers -- Act authorizes Minister to amend assessments and requires him to make assessment in accordance with its provisions -- Where assessment appealed, Court limited to relief provided for by Act and cannot grant declaration -- Application allowed -- Income Tax Act, S.C. 1970-71-72, c. 63, ss. 20(1)(c), 177 -- Federal Court Rules, C.R.C., c. 663, R. 419.