Section 87 — Excise Tax Act: Collection in jeopardy

Despite section 86, if it may reasonably be considered that the collection of any sum for which a person has been assessed would be jeopardized by a delay under that section and the Minister has, by a notice served personally or by registered or certified mail, so advised that person and directed them to pay that sum or any part of it, the Minister may without delay take any of the actions described in paragraphs 86(4)(a) to (c) with respect to that sum or part. Any person on whom a direction is served under subsection (1) may on three days notice of motion to the Deputy Attorney General of Canada, apply to a judge of a superior court having jurisdiction in the province in which that person resides or to a judge of the Federal Court for an order fixing a day, not earlier than fourteen days nor later than twenty-eight days after the date of the order, and place for the determination of the question whether the direction was justified in the circumstances; serve a copy of the order on the Deputy Attorney General of Canada within six days after the day on which it was made;

and if that person has proceeded as authorized by paragraph (b), apply at the appointed time and place for an order determining the question. An application to a judge under paragraph (2)(a) shall be made within thirty days after the day on which the direction under subsection (1) was served; or within such further time as the judge, on being satisfied that the application was made as soon as circumstances permitted, may allow. An application to a judge under paragraph (2)(c) may, on request of the applicant, be heard in private if the applicant establishes to the satisfaction of the judge that the circumstances of the case justify proceedings being held in private. On the hearing of an application under paragraph (2)(c), the burden of justifying the direction is on the Minister. On an application under paragraph (2)(c), the judge shall determine the question summarily and may confirm, vacate or vary the direction and make such other order as he considers appropriate. Where the judge to whom an application has been made under paragraph (2)(a) cannot for any reason act or continue to act in the application under paragraph (2)(c), the application under paragraph (2)(c) may be made to another judge. No costs may be awarded by a judge on the disposition of an application under subsection (2).