Victuni Aktiengesellschaft v. Quebec, Province of, (1980) 32 N.R. 91 (SCC)

• Judge: Pigeon, Beetz, Estey, McIntyre and Chouinard, JJ.
• Court: Supreme Court (Canada)
• Case Date: April 22, 1980
• Jurisdiction: Canada (Federal)
• Citations: (1980), 32 N.R. 91 (SCC);32 NR 91;3 ACWS (2d) 126;[1980] CarswellQue 108;[1980] 1 SCR 580;1980 CanLII 169 (SCC);112 DLR (3d) 83

Victuni Aktiengesellschaft v. Quebec (1980), 32 N.R. 91 (SCC)

MLB headnote and full text

Victuni Aktiengesellschaft v. Quebec, Province of

Indexed As: Victuni Aktiengesellschaft v. Quebec, Province of

Supreme Court of Canada

Pigeon, Beetz, Estey, McIntyre and Chouinard, JJ.

April 22, 1980.

Summary:

This case arose out of the imposition of a tax under the Quebec Corporation Tax Act on the paid-up capital of a company. The Quebec Provincial Court set aside the imposition of the tax. The Province of Quebec appealed to the Quebec Court of Appeal.

The Quebec Court of Appeal allowed the appeal and restored the imposition of the tax. The corporation appealed to the Supreme Court of Canada.

The Supreme Court of Canada allowed the appeal, set aside the judgment of the Quebec Court of Appeal and restored the judgment of the Quebec Provincial Court.

Company Law - Topic 9914

Special corporation taxes - Definitions, paid-up capital - The Quebec Minister of Revenue imposed a tax under the Corporation Tax Act of one-fifth of 1% on a company's paid-up capital of $10,985,892 which resulted from the purchase of a building - Under the Corporation Tax Act paid-up capital was defined to include all indebtedness of the company - The company claimed that it was not indebted for $10,985,892 because it acted as a mandatary - The Supreme Court of Canada set aside the imposition of the tax because under Quebec law the obligation of a mandatary towards the mandator is not a debt (see paragraph 9).

Words and Phrases

Paid-up capital - The Supreme Court of Canada discussed the meaning of the words "paid-up capital" as found in s. 3(1)(a) of the Quebec Corporation Tax Act, R.S.Q. 1964, c. 67.

Cases Noticed:

R. v. Légaré, 17 N.R. 277; [1978] 1 S.C.R. 275, refd to. [paras. 9 and 23].

Canadian Pioneer Management Limited v. Saskatchewan Labour Relations Board, 31 N.R. 361, refd to. [paras. 9 and 23].

Attorney General of Canada v. Attorney General of Quebec, [1947] A.C. 33, refd to. [paras. 9 and 23].

Bank of Toronto v. Lambe (1887), 12 A.C. 575, refd to. [paras. 10 and 24].

Statutes Noticed:

Corporation Tax Act, R.S.Q. 1964, c. 67, sect. 3(1)(a) [paras. 4 and 18].

Quebec Civil Code, art. 1713 [paras. 9 and 23]; art. 1716 [paras. 7 and 21].

Trust Companies Act, R.S.Q. 1964, c. 287 [paras. 11 and 25].

Authors and Works Noticed:

Traité de droit civil du Québec, vol. 13, page 70 [paras. 7 and 21].

Planiol and Ripert, Traité de droit civil, Tome 11, page 956 [paras. 8 and 22].

Counsel:

Rober Beaulieu, Q.C., and Michel Messier, for the appellant;

Yves Ouellette, Andre St-Jean and Michel Legendre, for the respondent.

This appeal was heard by PIGEON, BEETZ, ESTEY, McINTYRE and CHOUINARD, JJ. of the Supreme Court of Canada at Ottawa, Ontario on January 24, 1980.

The judgment of the Supreme Court of Canada was delivered by PIGEON, J. on April 22, 1980 - see paragraphs 1 to 14 (English language judgment) and paragraphs 15 to 28 (French language judgment).