Prince George businessman Irvin Leroux will get his day in court in an ongoing battle against the federal government's tax collector.
B.C. Supreme Court Justice Jeanne Watchuk rejected Wednesday an application by Canada Revenue Agency to dismiss key parts of Leroux's claim under the Limitation Act.
The decision, reached after a day of lawyers' submissions on Tuesday, means a 10-day trial set to begin Sept. 23, will go ahead. Had Watchuck decided in the CRA's favour, Leroux said his case would have been finished.
"What would have been left to go to trial with was nothing," Leroux said.
The CRA was seeking to strike allegations that an auditor lost Leroux's records, grossly inflated reassessments as a result, and tried to extort $25,000 from Leroux. It argued the claims were made more than two years after the actions were to have occurred, contravening the Limitations Act.
In response, Leroux's counsel had argued he did not know he had a cause for action until he received legal advice in 2009.
Watchuk found the allegations were a key part of his larger argument and "piecemeal" decisions on aspects of the claim would be unjust.
Although he was eventually issued a refund following a ruling by the Tax Court of Canada, Leroux claims the CRA's actions caused him to lose his home, his business and his life savings and is seeking compensation.
Prior to Watchuk's decision, Leroux was fairly confident the ruling would go his way but was nonetheless relieved when the outcome was given. He said the next steps now involve getting prepared for the trial.
The CRA has declined to comment on the case while it has remained before the court.
About half of Leroux's legal costs are being covered by the Canadian Constitution Foundation, a non-profit organization dedicated to defending Canadians' constitutional freedoms through "education, communication and litigation."
