Alberta Gas Ethylene Co. v. Minister of National Revenue, (1990) 112 N.R. 399 (FCA)
| Judge | Heald, Urie and Hugessen, JJ.A. |
| Court | Federal Court of Appeal (Canada) |
| Case Date | June 18, 1990 |
| Jurisdiction | Canada (Federal) |
| Citations | (1990), 112 N.R. 399 (FCA) |
Alta. Gas Ethylene Co. v. MNR (1990), 112 N.R. 399 (FCA)
MLB headnote and full text
Alberta Gas Ethylene Company Ltd. (appellant/plaintiff) v. Her Majesty The Queen (respondent/defendant)
(A-1208-88)
Indexed As: Alberta Gas Ethylene Co. v. Minister of National Revenue
Federal Court of Appeal
Heald, Urie and Hugessen, JJ.A.
June 18, 1990.
Summary:
ASCO was a wholly owned nonresident subsidiary of Alberta Gas. ASCO was formed to borrow money in the United States at a favourable interest rate and in turn loan the money to Alberta Gas. Alberta Gas made interest payments on the loans. The Minister of National Revenue ruled that withholding taxes were owed by Alberta Gas on the interest payments to ASCO. Alberta Gas appealed.
The Federal Court of Canada, Trial Division, in a judgment reported 24 F.T.R. 309, dismissed the appeal. Alberta Gas appealed.
The Federal Court of Appeal dismissed the appeal.
Income Tax - Topic 8703
Special taxes - Nonresident withholding taxes - Payments of interest - To subsidiaries - ASCO was a wholly owned nonresident subsidiary of Alberta Gas - ASCO was formed to borrow money in the United States at a favourable interest rate and in turn loan the money to Alberta Gas - Alberta Gas made interest payments on the loans - The Minister of National Revenue ruled that withholding taxes were owed by Alberta Gas on the interest payments to ASCO - The Federal Court of Canada, Trial Division, affirmed the ruling - The court held that the separate corporate identity of the subsidiary ASCO could not be ignored, nor could ASCO be said to be merely the agent of Alberta Gas in the loan transactions - The Federal Court of Appeal affirmed the decision.
Statutes Noticed:
Income Tax Act, S.C. 1970-71-72, c. 63, sect. 212, sect. 215 [para. ].
Income Tax Act Regulations, sect. 805 [para. 3].
Counsel:
W.J.A. Mitchell, Q.C., and J.A. Hermes, for the appellant;
I.E. Lloyd and L.L. Evans, for the respondent.
Solicitors of Record:
Thorsteinssons, Vancouver, B.C., for the appellant;
John C. Tait, Q.C., Deputy Attorney General, Ottawa, Ontario, for the respondent.
This appeal was heard on June 18, 1990, at Vancouver, B.C., before Heald, Urie and Hugessen, JJ.A., of the Federal Court of Appeal.
On June 18, 1990, Hugessen, J.A., orally delivered the following judgment for the Court of Appeal:
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Table of Cases
...Alberta Gas Ethylene Co v MNR, [1989] 1 CTC 135, 89 DTC 5058, 41 BLR 117, 24 FTR 309 (TD), aff’d [1990] 2 CTC 171, 90 DTC 6419, 37 FTR 79n, 112 NR 399 (CA) .....................................................................151 Alberta Government Telephones v Canadian Radio-television and ......
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Elbow River Marketing Limited Partnership v. Canada Clean Fuels Inc. et al., 2012 ABQB 277
...135, (sub nom . Alberta Gas Ethylene Co. v. Minister of National Revenue ) 24 F.T.R. 309, affirmed 90 D.T.C. 6419, [1990] 2 C.T.C. 171, 112 N.R. 399 (Fed. C.A.), Madam Justice Reed observed at p. 5061 [89 D.T.C.] that the Smith case, supra , does not stand for the proposition that one must ......
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...107 (C.A.), consd. [para. 41]. Alberta Gas Ethylene Co. Ltd. v. Minister of National Revenue (1988), 24 F.T.R. 309; 43 D.T.C. 5058, affd. 112 N.R. 399; 44 D.T.C. 6419 (F.C.A.), consd. [para. B.G. Preeco I (Pacific Coast) Ltd. v. Bon Street Holdings et al. - see Preeco I (B.G.)(Pacific Coast......
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Elbow River Marketing Limited Partnership v. Canada Clean Fuels Inc. et al., 2012 ABQB 277
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Sun Sudan Oil Co. et al. v. Methanex Corp. et al., (1992) 134 A.R. 1 (QB)
...107 (C.A.), consd. [para. 41]. Alberta Gas Ethylene Co. Ltd. v. Minister of National Revenue (1988), 24 F.T.R. 309; 43 D.T.C. 5058, affd. 112 N.R. 399; 44 D.T.C. 6419 (F.C.A.), consd. [para. B.G. Preeco I (Pacific Coast) Ltd. v. Bon Street Holdings et al. - see Preeco I (B.G.)(Pacific Coast......
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...2 O.R. 565 (H.C.), refd to. [para. 70]. Alberta Gas Ethylene Co. v. Minister of National Revenue (1988), 24 F.T.R. 309 (T.D.), affd. (1990), 112 N.R. 399; 1990 CarwellNat 342 (F.C.A.), refd to. [para. Authors and Works Noticed: Archibald, Todd L., and Cochrane, Michael, Annual Review of Civ......
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Table of Cases
...Alberta Gas Ethylene Co v MNR, [1989] 1 CTC 135, 89 DTC 5058, 41 BLR 117, 24 FTR 309 (TD), aff’d [1990] 2 CTC 171, 90 DTC 6419, 37 FTR 79n, 112 NR 399 (CA) .....................................................................151 Alberta Government Telephones v Canadian Radio-television and ......
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