1068827 Ontario Inc. v. Minister of National Revenue, (2011) 385 F.T.R. 27 (FC)

• Judge: Heneghan, J.
• Court: Federal Court (Canada)
• Case Date: November 02, 1010
• Jurisdiction: Canada (Federal)
• Citations: (2011), 385 F.T.R. 27 (FC);2011 FC 33

1068827 Ont. v. MNR (2011), 385 F.T.R. 27 (FC)

MLB headnote and full text

Temp. Cite: [2011] F.T.R. TBEd. JA.027

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

(T-407-09; 2011 FC 33)

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

Federal Court

Heneghan, J.

January 13, 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 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.

Cases Noticed:

Zale Canada Diamond Sourcing Inc. v. Minister of National Revenue (2010), 363 F.T.R. 251; 2010 FC 202, refd to. [para. 10].

R. v. Sharpe (J.R.), [2001] 1 S.C.R. 45; 264 N.R. 201; 146 B.C.A.C. 161; 239 W.A.C. 161; 150 C.C.C.(3d) 321; 2001 SCC 2, refd to. [para. 13].

Markevich v. Minister of National Revenue, [2003] 1 S.C.R. 94; 300 N.R. 321; 2003 SCC 9, refd to. [para. 18].

Minister of National Revenue v. Canada Trustco Mortgage Co., [2005] 2 S.C.R. 601; 340 N.R. 1; 2005 SCC 54, refd to. [para. 19].

Thomson v. Canada (Minister of Agriculture), [1992] 1 S.C.R. 385; 133 N.R. 345; 89 D.L.R.(4th) 218, refd to. [para. 39].

Statutes Noticed:

Excise Tax Act, R.S.C. 1985, c. E-15, sect. 2(1)(g) [para. 27]; sect. 2(4.1) [para. 28]; sect. 23(1), sect. 23(2) [para. 26]; Schedule I, sect. 7 [para. 29]; Schedule I, sect. 8 [para. 29].

Counsel:

David A. MacKenzie and Patrick Brennan, for the plaintiff;

Alexandre Kaufman, for the defendant.

Solicitors of Record:

Szemenyei Kirwin MacKenzie, LLP, London, Ontario, for the plaintiff;

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

This appeal was heard in Ottawa, Ontario, on November 2, 1010, before Heneghan, J., of the Federal Court, who delivered the following decision on January 13, 2011.