| Citation: |
Calgary (City) v. Canada, 2010 FCA 127, [2010] 3 F.C.R. D-3 |
A-250-09 |
Customs and Excise
Excise Tax Act
Appeal from Tax Court of Canada decision (2009 TCC 272) construction of transit system separate supply to Province of Alberta for which City of Calgary (respondent) could claim input tax credits—Respondent entering into funding agreements with Province for construction of transit system, paying GST with respect to purchases made for construction—As provision of municipal transit system exempt supply under Excise Tax Act, R.C.S., 1985, c. E-15, respondent not entitled to input tax credits—Respondent taking position that construction of transit system separate, non-exempt supply—Tax Court finding that goods, services acquired by respondent in course of developing transit system acquired in course of respondent’s commercial activities, that supply of transit system to Province in exchange for funding was separate business which was not an exempt supply, consequently, that respondent entitled to claim input tax credit with respect to GST paid in connection with those goods, services—Proper interpretation of agreements not supporting view that respondent required to provide Province with transportation system—Error to construe agreements in such a way as to make respondent the Province’s general contractor for construction of municipal transit system—Agreements made in context of provincial legislation requiring respondent elaborate transportation plan—Province authorized to provide financial assistance—Agreements mechanism by which financial assistance administered, accountability for public funds maintained—While Tax Court Judge correct to find respondent’s activities under agreements constituting business, that business did not consist of making supply of transit facilities to Province—As such, argument Province recipient of supply because paying consideration for supply of municipal transit system based upon mistaken interpretation of respondent’s obligations under agreements—Appeal allowed.
Calgary (City) v. Canada (A-250-09, 2010 FCA 127, Pelletier J.A., judgment dated May 21, 2010, 24 pp.)