Principal Issues: At the Round Table of Journées d'études fiscales of the CTF held on June 10, 2011, the CRA was asked to comment the Quebec Court of Appeal's decision in Deputy Minister of National Revenue (Quebec) v. Services Environnementaux AES Inc. 2011 QCCA 394.
Position: At this time, the CRA declined to comment.
Reasons: Revenue Quebec has sought leave to appeal the Quebec Court of Appeal's decision Services Environnementaux AES Inc. to the Supreme Court of Canada. Furthermore, the Quebec Court of Appeal has recently rendered another decision on the same question in Riopel v. Canada Revenue Agency, 2011 QCCA 954 (an appeal from the decision Archambault v. Canada Revenue Agency, 2010 QCCS 1576, hereinafter the "Archambault decision"), that confirms the Services Environnementaux AES Inc. decision. The time for appealing the Archambault decision has not yet expired.
June 10, 2011
Canadian Tax Foundation
ROUNDTABLES - CRA and ARQ
Question 2
Has the CRA's position on rectifications changed in light of recent decisions of the Quebec courts, notably that of the Quebec Court of Appeal in Sous-ministre du Revenu du Québec et al. v. Services Environnementaux AES inc. et al. 2011 QCCA 394 ("Services Environnementaux AES Inc.")?
CRA Response
The Agence du revenu du Québec has sought leave to appeal the Quebec Court of Appeal's decision in Services Environnementaux AES Inc. to the Supreme Court of Canada. We are also aware of the recent Archambault decision (Riopel v. Canada Revenue Agency, 2011 QCCA 954, an appeal from Archambault v. Canada Revenue Agency, 2010 QCCS 1576) to the Quebec Court of Appeal rendered on May 20, that confirms the Services Environnementaux AES Inc. decision. However, the time available to the parties involved to file an application for leave to appeal that decision to the Supreme Court of Canada has not expired to date. Given the circumstances, we prefer at this time to refrain from commenting on this topic.
Urszula Chalupa
2011-040462