section 734.4(2)

INTRODUCTION AND BRIEF DESCRIPTION

This section outlines the circumstances under which fines, forfeitures or recognizances are to be paid to the government of Canada.

SECTION WORDING

734.4(2) Where (a) a fine or forfeiture is imposed (i) in respect of a contravention of a revenue law of Canada, (ii) in respect of a breach of duty or malfeasance in office by an officer or employee of the Government of Canada, or (iii) in respect of any proceedings instituted at the instance of the Government of Canada in which that government bears the costs of prosecution, or (b) a recognizance in connection with proceedings mentioned in paragraph (a) is forfeited, the proceeds of the fine, forfeiture or recognizance belong to Her Majesty in right of Canada and shall be paid by the person who receives them to the Receiver General.

EXPLANATION

Section 734.4(2) of the Criminal Code of Canada relates to the distribution of fines, forfeitures, and recognizances that arise in certain circumstances. In general, when such penalties are imposed, they are collected and disbursed according to various rules and regulations. However, in cases where the revenue law of Canada has been contravened, or where there has been a breach of duty or malfeasance in office by a government employee, or where the government has instituted proceedings and bears the costs of prosecution, then the proceeds of any fines, forfeitures, or recognizances must be paid to Her Majesty in right of Canada. In other words, if someone is caught breaking a revenue law, such as failing to report income on their taxes or claiming false deductions, any fines or forfeitures they face will not be paid into a general fund. Instead, the government is entitled to keep that money. Similarly, if a government employee is found to have engaged in misconduct or committed an offense, any penalties imposed on them will not go to the employee's department or agency. Instead, they will be handed over to the government. Finally, if the government initiates legal proceedings against someone and wins, any costs paid by the government will be reimbursed from the penalties paid by the defendant. Overall, Section 734.4(2) is meant to ensure that the government is not out of pocket when it comes to enforcing its own laws and prosecuting those who break them. It also serves as a deterrent, as individuals and entities may be less likely to engage in certain activities knowing that any penalties they face will be going straight to the government.

COMMENTARY

Section 734.4(2) of the Criminal Code of Canada outlines the circumstances under which fines, forfeitures, and recognizances in Canada become the property of the government. Essentially, if a fine, forfeiture, or recognizance is imposed as a result of a contravention of a revenue law of Canada, a breach of duty or malfeasance in office by a government employee, or any proceedings instituted at the instance of the government, then the proceeds of these penalties belong to the government and must be paid to the Receiver General. The reasoning behind this section is twofold. Firstly, it is an attempt to deter individuals from acting in a manner that would result in one of the listed penalties. By making it clear that any financial penalties imposed will benefit the government and not the individual or organization in question, it provides an additional layer of accountability and disincentive for inappropriate behavior. Secondly, this section is intended to serve as a restitutionary measure for the government. In cases where the government bears the costs of prosecution, such as in certain criminal cases, it is reasonable to expect that any fines or forfeitures imposed as a result of those proceedings should be directed back to the government. This serves as a means of recovering some of the costs associated with prosecuting these cases and can help offset the costs of maintaining the justice system. Some potential concerns with this section might be related to the broad range of circumstances under which fines and forfeitures can be imposed. For example, while imposing penalties for contraventions of revenue laws or instances of malfeasance in office may be appropriate, there is a risk that this section could be used to punish individuals or organizations in a manner that is disproportionate to their actions. Additionally, there may be concerns about the degree to which the government benefits from these penalties, particularly if the government is overly reliant on fines and forfeitures as a source of revenue. Overall, however, Section 734.4(2) is an important provision in the Criminal Code of Canada. By emphasizing accountability and providing a means through which the government can recover some of its costs related to prosecution, it plays a vital role in maintaining the integrity of Canada's justice system.

STRATEGY

Section 734.4(2) of the Criminal Code of Canada outlines the distribution of proceeds from fines, forfeitures, and recognizances imposed in certain cases. The section specifies that the proceeds belong to the Canadian government and should be paid to the Receiver General. This provision has significant implications for individuals and organizations facing fines or forfeitures in connection with the specified offenses. In this essay, we will explore the strategic considerations that individuals and organizations should consider when dealing with this section of the Criminal Code and identify some strategies that could be employed to minimize the financial impact of such penalties. One strategic consideration is the importance of seeking legal counsel. The wording of Section 734.4(2) makes it clear that the proceeds of fines and forfeitures in certain categories are automatically forfeited to the government. There is no provision for negotiating or compromising these penalties. Therefore, it is essential to have expert legal advice in dealing with these types of proceedings. A lawyer with expertise in the relevant area of law can help to mitigate the impact of the penalty, negotiate favorable payment terms, and advise on possible challenges to the imposition of the penalty. Another strategic consideration is the possibility of planning for a penalty before it is imposed. In some cases, it may be possible for a person or organization to anticipate the imposition of a penalty, such as a tax fine, and take actions to mitigate its impact. For example, one could arrange to pay the fine in installments rather than a lump sum, or negotiate an extended deadline for payment. Alternatively, if there are grounds to dispute the imposition of the penalty, it may be possible to appeal the decision or to seek a judicial review of the decision. A third strategic consideration is to explore any available options for appealing the penalty or seeking a waiver of all or part of the penalty. In some cases, there may be grounds for appeal, such as procedural errors or the imposition of an excessive penalty. Furthermore, some penalties may be subject to waivers or reductions in exceptional circumstances. For example, in the case of revenue-related penalties, an individual or organization may be able to demonstrate financial hardship that would make it difficult to pay the penalty. Alternatively, it may be possible to demonstrate that the penalty has a disproportionately severe impact in comparison to the offense committed. In summary, Section 734.4(2) of the Criminal Code of Canada specifies that a range of penalties in specified categories automatically forfeit the proceeds to the government. This provision has significant implications for individuals and organizations facing such penalties. To mitigate the impact of such penalties, it is essential to seek expert legal counsel and plan for potential penalties in advance. Furthermore, appealing the penalty or seeking a waiver or reduction may be possible in some cases. With these strategies in mind, individuals and organizations can take proactive steps to manage the impact of penalties and protect their financial interests.