Canada Safeway Ltd. v. R., 98 DTC 6060, [1998] 1 CTC 120 (FCA) -- summary under Subparagraph 12(1)(x)(iv)

By services, 28 November, 2015

In finding that a refund of federal sales tax that predecessors of the taxpayer previously had paid in error did not qualify as a reimbursement for purposes of s. 12(1)(x)(iv), Létourneau J.A. noted that Westcoast Energy had found that “in all of the examples of the word reimbursement [provided to the court], there exists a flow of benefits between the respective parties.” He then stated (at p. 6063):

"In the case of a refund of sums paid by error, there is, in my view, no flow of benefits between the respective parties: the money is simply returned to the payer. In addition, while the notion of reimbursement generally involves the intervention of a third party, that of refund implies the mere return of money between two parties."

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sales tax refund not reimbursement
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"field_legacy_header": "<a id=\"CanadaSafeway\"></a><strong><em>The Queen v. Canada Safeway Ltd.</em></strong>, 98 DTC 6060, <a href=\"http://decisions.fca-caf.gc.ca/en/1997/a-896-96_3442/a-896-96.html\">docket A-896-96</a> (FCA) <strong>[sales tax refund not reimbursement]</strong>",
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