Catalyst Paper Corp. v. British Columbia, 2015 BCCA 372
Judge | Chiasson, Frankel and MacKenzie, JJ.A. |
Court | Court of Appeal (British Columbia) |
Case Date | February 04, 2015 |
Jurisdiction | British Columbia |
Citations | 2015 BCCA 372;(2015), 374 B.C.A.C. 1 (CA) |
Catalyst Paper Corp. v. B.C. (2015), 374 B.C.A.C. 1 (CA);
642 W.A.C. 1
MLB headnote and full text
Temp. Cite: [2015] B.C.A.C. TBEd. AU.032
Powell River Energy Inc. (respondent/petitioner) v. Her Majesty the Queen in Right of the Province of British Columbia (appellant/respondent)
(CA41610)
Catalyst Paper Corporation (respondent/petitioner) v. Her Majesty the Queen in Right of the Province of British Columbia (appellant/respondent)
(CA41611; CA41612; CA41613; 2015 BCCA 372)
Indexed As: Catalyst Paper Corp. v. British Columbia
British Columbia Court of Appeal
Chiasson, Frankel and MacKenzie, JJ.A.
February 4, 2015.
Summary:
Catalyst Paper Corp. owned and operated a pulp mill. Until 2001, Catalyst owned hydroelectric generating facilities that provided 42% of the electricity it needed to operate the mill. In 2001, Catalyst transferred its interest in the hydroelectric facilities to a subsidiary, Powell River Energy Inc. (PREI). Under contractual arrangements with PREI, Catalyst paid a "contract price" for electricity and a separate amount for "rent". The contract price was determined by deducting the rent from the market value of the electricity. The Crown calculated provincial sales tax (PST) based on the total amount that Catalyst paid to PREI. Catalyst and PREI appealed the assessments.
The British Columbia Supreme Court, in a decision reported at [2014] B.C.T.C. Uned. 123, allowed the appeals. The court held that the rent payments were not part of the purchase price of the electricity and were therefore not subject to PST. The Crown appealed.
The British Columbia Court of Appeal allowed the appeals and restored the assessments.
Sales and Service Taxes - Topic 8
Sales tax - Definitions - Sale or purchase price - What constitutes - See paragraphs 37 to 46.
Sales and Service Taxes - Topic 401
Sales tax - Sale or purchase price - Determination of - General - See paragraphs 37 to 46.
Cases Noticed:
Canderel Ltd. v. Minister of National Revenue, [1998] 1 S.C.R. 147; 222 N.R. 81, refd to. [para. 32].
Minister of National Revenue v. Sussex Square Apartments Ltd., [1999] 2 C.T.C. 2143 (T.C.C.), affd. [2000] N.R. Uned. 148; [2000] 4 C.T.C. 203 (F.C.A.), refd to. [para. 36].
Friedberg v. Minister of National Revenue (1991), 135 N.R. 61; 92 D.T.C. 6031 (F.C.A.), affd. [1993] 4 S.C.R. 285; 160 N.R. 312, refd to. [para. 38].
Minister of National Revenue v. Shell Canada Ltd., [1999] 3 S.C.R. 622; 247 N.R. 19, refd to. [para. 38].
Terasen Gas Inc. v. British Columbia (2010), 289 B.C.A.C. 312; 489 W.A.C. 312; 5 B.C.L.R.(5th) 112; 2010 BCCA 255, refd to. [para. 38].
Continental Bank Leasing Corp. v. Minister of National Revenue, [1995] 1 C.T.C. 2135, affd. [1998] 2 S.C.R. 298; 229 N.R. 58, refd to. [para. 40].
Singleton v. Minister of National Revenue, [2001] 2 S.C.R. 1046; 275 N.R. 133; 2001 SCC 61, refd to. [para. 43].
Counsel:
D.J. Hatter, for the appellant;
K.L.D. Cook, for the respondents.
This appeal was heard at Vancouver, B.C., on February 4, 2015, before Chiasson, Frankel and MacKenzie, JJ.A., of the British Columbia Court of Appeal, who delivered judgment on the same date. Frankel, J.A., delivered the following written reasons for the court on August 24, 2015.
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