When are the parties to a civil tax dispute bound by agreed
facts from a criminal proceeding?
This was the question considered by the Tax Court of Canada on a
Rule 58 motion made by the taxpayers in McIntrye et al v. The Queen (2014 TCC
111). Specifically, the taxpayers argued the principles of
issue estoppel, res judicata, and abuse of process applied
to prevent the Minister of National Revenue (the
"Minister") from assuming facts inconsistent with agreed
facts from a prior criminal guilty plea.
In McIntyre, two individuals and their corporation were
audited for the 2002 to 2007 tax years. The individuals and the
corporation were charged with criminal income tax evasion. As part
of a plea bargain, one individual and the corporation plead guilty
based on certain agreed facts, and the court imposed sentences
accordingly. The other individual was not convicted.
