Midland Hutterian Brethren v. Canada, (2000)
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Midland Hutterian Brethren v. Canada, (2000)
Date: 20001221
Docket: A-183-99CORAM: LINDEN J.A.EVANS J.A.MALONE J.A.BETWEEN:MIDLAND HUTTERIAN BRETHREN,Applicant- and -HER MAJESTY THE QUEEN,RespondentHeard at Calgary, Alberta, on Friday, October 13, 2000.Judgment delivered at Ottawa, Ontario, on Thursday, December 21, 2000.REASONS FOR JUDGMENT BY: MALONE J.A.CONCURRED IN BY: LINDEN J.A.DISSENTING REASONS FOR JUDGMENT BY: EVANS J.A.Date: 20001221Docket: A-183-99CORAM: LINDEN J.A.EVANS J.A.MALONE J.A.BETWEEN:MIDLAND HUTTERIAN BRETHREN,Applicant- and -HER MAJESTY THE QUEEN,RespondentREASONS FOR JUDGMENTMALONE J.A.The Minister of National Revenue ("the Minister") denied the Applicant an input tax credit ("ITC") in respect of the cost of certain cloth purchased to make into work clothing for use by its members in its farming operation. This is an application for judicial review of a judgment of the Tax Court of Canada, dated February 26, 1999, dismissing the applicant's appeal, which challenged that assessment made by the Minister under Part IX of the Excise Tax Act , ("the Act"). 1Under the scheme of the Act, a registrant, such as the applicant, engaged in a commercial activity which does not produce exempt supplies, is entitled to recover, using the ITC regime, the goods and services tax ("GST") paid on any goods or services acquired "for consumption, use or supply in the course of commercial activities of the person". 2 There is no dispute that the applicant carries on a commercial activity, that is farming, and produces non-exempt supplies. The disagreement is about whether the cloth was used in the course of commercial activities. The issue is one of remoteness. How closely tied to an output does an expense have to be before it qualifies for an ITC?FactsMidland Hutterian Brethren ("the Colony"or "the registrant") is a communal colony of the Hutterian Brethren Church and was organized as an Alberta corporation under Part 9 of the Companies Act (Alberta) 3 on January 6, 1978. The Colony's membe...See the full content of this document
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