Desjardins Sécurité financière Compagnie d’Assurance Vie – Tax Court of Canada applies the presumption against derogating from Superior Court jurisdiction

The taxpayer, an insurer, was assessed by CRA for Nova Scotia large corporations tax that was imposed pursuant to the Income Tax Act (Nova Scotia) but calculated in accordance with ITA s. 181.3. Smith J. found that the Tax Court lacked the jurisdiction to consider the taxpayer's appeal of this assessment.

The taxpayer had submitted that the statement in s. 75 of the Nova Scotia Act - that various provisions, including the Division J provisions regarding ITA appeals, applied to the large corporations provisions of Part III of the Nova Scotia Act - contrasted with a provision of the Nova Scotia Act stating that s. 169 applied for the purposes of that Act, which indicated a legislative intention that large corporations could appeal Nova Scotia large corporations tax assessments to the Tax Court.

In rejecting this submission, Smith J noted the established “rule that any derogation from the jurisdiction of the provincial superior courts (in favour of the Federal Court or otherwise) requires clear and explicit statutory language” and found that, rather than there being any such derogation, s. 2(10)(j) of the Nova Scotia Act had an “unambiguous” statement that the references in the cross-referenced ITA procedural provisions to the Tax Court of Canada referred to the Supreme Court of Nova Scotia.

Neal Armstrong. Summary of Desjardins Sécurité financière Compagnie d’Assurance Vie v. The King, 2026 CCI 109 under ITA s. 169(1).