Ontario Hydro v. Ontario (Ministry of Revenue), [1996] O.J. No. 333, 60 A.C.W.S. (3d) 1080, aff’d on other grounds [1999] O.J. No. 1723, 44 O.R. (3d) 1, 120 O.A.C. 184, 88 A.C.W.S. (3d) 507 -- summary under Real Property

By services, 14 January, 2016

Borins J found that microwave telecommunications and power line carrier equipment which for the most part was attached by screws to metal racks which, in turn, were bolted to the floor in the Pickering nuclear facility of the taxpayer, were not fixtures, and instead were tangible personal property subject to Ontario retail sales tax. He stated (at paras. 7-8):

[T]he courts are more inclined to regard an item as a chattel if it is installed as part of its owner's business, as opposed to items installed to improve the freehold. For example, equipment installed in a factory to operate a business is usually found to be a chattel because it has nothing to do with improving the freehold. ...

In this case, the microwave equipment did not improve the building in which it was installed. It was installed to enable Hydro to carry out its business of producing and distributing electricity. Therefore, it constitutes a chattel. The retail sales tax was properly paid [thereon].

Topics and taglines
Tagline
microwave equipment which did not improve a building was not fixtures
Words and phrases
d7 import status
Drupal 7 entity type
Node
Drupal 7 entity ID
365514
Extra import data
{
"field_legacy_header": "",
"field_override_history": false,
"field_sid": "",
"field_topic_category": "seealso"
}