1068827 Ont. Inc. v. MNR, (2011) 427 N.R. 350 (FCA)

• Judge: Noël, Nadon and Sharlow, JJ.A.
• Court: Federal Court of Appeal (Canada)
• Case Date: November 08, 2011
• Jurisdiction: Canada (Federal)
• Citations: (2011), 427 N.R. 350 (FCA);2011 FCA 304

1068827 Ont. Inc. v. MNR (2011), 427 N.R. 350 (FCA)

MLB headnote and full text

Temp. Cite: [2011] N.R. TBEd. NO.045

1068827 Ontario Inc. o/a Grace Motors (appellant) v. Her Majesty the Queen in Right of Canada as representing the Minister of National Revenue (respondent)

(A-66-11; 2011 FCA 304)

Indexed As: 1068827 Ontario Inc. v. Minister of National Revenue

Federal Court of Appeal

Noël, Nadon and Sharlow, JJ.A.

November 8, 2011.

Summary:

The plaintiff taxpayer imported 270 used motor vehicles from the United States for re-sale in Canada. The vehicles contained air conditioner units. The Minister of National Revenue (MNR) collected excise taxes of $100 for each vehicle under s. 23 and Schedule I, s. 7 of the Excise Tax Act. The taxpayer sought a refund of the excise tax. The MNR disallowed the refund claim. The taxpayer appealed. The Canadian International Trade Tribunal dismissed the appeal. The taxpayer appealed again.

The Federal Court, in a decision reported 385 F.T.R. 27, dismissed the appeal. The plaintiff appealed.

The Federal Court of Appeal dismissed the appeal.

Sales and Service Taxes - Topic 117

Sales tax - Liability of persons and property - General principles - Air conditioners in vehicles - At issue on this appeal was whether the Excise Tax Act imposed an excise tax on air conditioner units that were included as permanently installed equipment in used automobiles, station wagons, vans, or trucks imported into Canada (s. 23 and Schedule I, s. 7 of the Excise Tax Act) - The Federal Court interpreted these provisions, holding that the $100 excise tax applied to used vehicles imported into Canada - The Federal Court of Appeal affirmed the decision.

Statutes Noticed:

Excise Tax Act, R.S.C. 1985, c. E-15, Schedule I, sect. 7, Schedule I, sect. 8 [para. 1].

Counsel:

David A. MacKenzie, for the appellant;

Sharon Johnston, for the respondent.

Solicitors of Record:

Szemenyei MacKenzie Godin, LLP, London, Ontario, for the appellant;

Myles J. Kirvan, Deputy Attorney General of Canada, Ottawa, Ontario, for the respondent.

This appeal was heard in Ottawa, Ontario, on November 8, 2011, before Noël, Nadon and Sharlow, JJ.A., of the Federal Court of Appeal. The following decision was delivered orally, form the bench, for the court, by Noël, J.A., on November 8, 2011.