CUSTOMS AND EXCISE |
Excise Tax Act |
Vanex Truck Service Ltd. v. Canada
A-831-99
2001 FCA 159, Malone J.A.
29/5/01
10 pp.
Appeal from Tax Court of Canada decision upholding Minister's assessment of goods and services tax (GST) against appellant for reporting period January 1, 1991 to July 31, 1994--Tax Court Judge concluding appellant made taxable supply of insurance, fuel, oil, licences for which failed to collect, remit GST under Excise Tax Act--Appellant British Columbia corporation involved in freight transportation business requiring approximately 24 truckers to transport goods solely for customers--Providing owner-operators option of acquiring insurance, motor vehicle, motor carrier licences, oil and fuel at discounted rates--Manner in which appellant provided discounted items to owner-operators at heart of appeal--Clear evidence before Tax Court Judge upon which to base conclusion insurance, fuel, oil, licences taxable supplies made from appellant to owner-operators, taxable under Act--Act, s. 165(1) subjecting every transaction to GST unless exempt under other provisions of statute--Tax Court Judge did not have to find appellant granted, supplied licence per se--Simply had to be satisfied licencing arrangements between appellant, owner-operators qualify as "supply" under Act--Valid consideration flowing from owner-operators to appellant on which GST should have been charged, remitted--Whether Minister advancing new basis by relying on Act, s. 178--Minister based assessment on argument appellant making supply--Allowing Minister to rely on s. 178 not altering original basis, since s. 178 contemplates making of supply--Appeal dismissed--Excise Tax Act, R.S.C., 1985, c. E-15, ss. 165 (as enacted by S.C. 1990, c. 45, s. 12; 1993, c. 27, s. 31; 1997, c. 10, ss. 17, 160), 178 (as enacted by S.C. 1990, c. 45, s. 12; repealed by S.C. 1997, c. 10, s. 27).