047438 N.B. Inc. v. Canada
T-572-93
Cullen J.
24/6/98
16 pp.
Appeal under Excise Tax Act, s. 82.1 against Minister's decision plaintiff's video lottery terminals (VLTs) "coin-operated games, amusement devices" subject to tax under Act, Sch. I, s. 2-Atlantic Lottery Corporation given mandate to manage, conduct computer supported lottery, to operate central computer system-In New Brunswick, VLTs privately owned, installed, serviced, maintained, repaired in return for specified percentage of net proceeds of VLT-VLT owners must be approved as members of New Brunswick Coin-Operated Machines Association (NBCOMA) in order to offer devices to Corporation for use-In November, December 1990, plaintiff agreed to purchase 100 model 8720A VLTs from American manufacturer approved by Corporation-Required to pay 10% excise tax totalling $51,950 under Act, s. 23, Sch. 1, s. 2-Plaintiff objecting to levy from outset, contending VLTs not games, amusement devices but electronic data processing equipment for automated lottery tickets-Application for refund rejected-Whether VLTs subject to tax under Excise Tax Act as "coin . . . operated games or amusement devices of all kinds"-Taxation statutes to be interpreted according to normal rules of interpretation as they apply to other legislative enactments-Words to be given ordinary meaning, in context, harmony with scheme, object of enactment and with view to legislative intent-Meaning of gaming, amusement devices judicially considered, purposive interpretation applied in various contexts-Provision at issue herein not directed at specific mischief such as gambling, not of penal nature-Purpose of provision for taxation of certain devices coin-operated, used for games, amusement-Without deposit of coins, VLT cannot be activated-Once activated, player may engage in one of several betting games-Proceeds of VLT calculated net of winnings-Each VLT equipped with logic board assembly consisting of logic board, back-up memory board, communication board-Computer chips necessary to play games housed in VLT-VLT essentially device allowing patrons to play games, gamble by engaging VLT-VLTs coin-operated, used to play games whether on-line with main computer or not-Even if comprised of electronic components, VLTs within "devices of all kinds"-Appeal dismissed-Excise Tax Act, R.S.C., 1985, c. E-15, ss. 23(1) (as am. by S.C. 1993, c. 25, s. 55), 81.2 (as enacted by R.S.C., 1985 (2nd Supp.), c. 7, s. 38; (4th Supp.), c. 47, s. 52), Sch. I, s. 2 (as repealed by S.C. 1990, c. 45, s. 13).