The Queen v. Ast Estate, 97 DTC 5197 (FCA)
In adopting an interpretation of s. 110.6(2.1) contained in the explanatory notes of the Department of Finance, Isaac C.J. stated (at p. 5201):
"Technical notes are widely accepted by the courts as aids to statutory interpretation. The interpretive weight of technical notes is particularly great where, at the time an amendment was before it, the legislature was aware of a particular administrative interpretation of the amendment, and nonetheless enacted it."
Lyons J applied the single supply doctrine to find that, as the University was making a single supply of education (a service) to its students, it should be considered to have acquired the books which it supplied to them at no additional charge for this “ultimate” purpose rather than for the purpose of merely transferring their ownership to the students. Accordingly, it was entitled to a GST rebate on its purchases of the books. Although Finance’s Explanatory Notes indicated that the rebate was not intended to be available where the books were acquired “for the purpose of resale or to give away permanently,” this proposition was not reflected in the wording of the rebate provision..
|Locations of other summaries||Wordcount|
|Tax Topics - Excise Tax Act - Section 259.1 - Subsection 259.1(2)||University’s purpose in acquiring books for its students was their education rather than the (free) “sale” of the books to them||259|
|Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Sale||University purchased books for educational supply rather than a transfer of their ownership to students||109|