The King v. Henry K. Wampole & Co. Ltd., [1931] SCR 494 -- summary under Subsection 141.01(2)

By services, 23 May, 2019

S. 87(d) of the Special War Revenue Act, imposed tax on goods which were “for use by the manufacturer or producer and not for sale,” was found to apply to the distribution by a pharmaceutical manufacturer of drug samples to doctors, but for the fact that the samples had already been subject to tax in the hands of the manufacturer. Anglin, CJ stated (at pp. 496-497):

“[U]se” by the manufacturer or producer of goods not sold includes any use whatever that such manufacturer or producer may make of such goods, and is wide enough to cover their “use” for advertising purposes by the distribution of them as free samples, as is the case here.

However, he noted (at p. 497) that “it cannot have been the intention of the Legislature to tax the same property twice in the hands of the manufacturer.”

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“use” includes providing free samples
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