Fibreco Export Inc. v. Canada
A-475-94
Hugessen J.A.
15/6/95
7 pp.
Appeal from Trial Division decision allowing appeal against income tax assessment -- Issue whether chemical pulp mill "certified property" within meaning of Income Tax Act, s. 127(9) so as to entitle respondents to higher rate of investment tax credit -- If pulp mill not "initial processing operation" pursuant to Regional Development Incentives Act, pulp mill meeting Income Tax Act definition of "certified property" -- Trial Judge erring in finding pulp mill not part of resource-based industry and erring in refusing to admit evidence as to administrative practice and parliamentary history-Although law regarding use of such evidence as statutory interpretation tools somewhat uncertain, debate turning upon question of weight rather than of admissibility, thus error for Trial Judge to exclude same -- Parliamentary debates and evidence of administrative practice only useful as interpretative tools where text ambiguous; cannot be used to create ambiguity -- Expression not ambiguous: processing of product resulting in significant chemical change in principal material used not "initial processing operation" -- Provision seeking to favour and encourage establishment in designated areas of sophisticated industries effecting significant chemical transformation of materials-Processing of wood chips into pulp using new technology not constituting "initial processing operation" -- Trial Judge reaching correct result despite error regarding interpretation of "resource-based industry" and rejection of evidence -- Appeal dismissed-Income Tax Act, S.C. 1970-71-72, c. 63, s. 127(9) (as am. by S.C. 1986, c. 6, s. 71; c. 55, s. 48) -- Regional Development Incentives Act, R.S.C. 1970, c. R-3.