Ladas v. Canada, 2002 FCA 237

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2002 FCA 237

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Text of decision

Date: 20020605

Docket: A-46-01

Neutral citation: 2002 FCA 237

CORAM: DÉCARY J.A.

SEXTON J.A.

EVANS J.A.

BETWEEN:

SOTIRIOS LADAS

Applicant

and

HER MAJESTY THE QUEEN

Respondent

Heard at Ottawa, Ontario, on June 5, 2002.

Judgment delivered from the Bench at Ottawa, Ontario, on June 5, 2002.

REASONS FOR JUDGMENT OF THE COURT BY: EVANS J.A.

Date: 20020605

Docket: A-46-01

Neutral citation: 2002 FCA 237

CORAM: DÉCARY J.A.

SEXTON J.A.

EVANS J.A.

BETWEEN:

SOTIRIOS LADAS

Applicant

and

HER MAJESTY THE QUEEN

Respondent

REASONS FOR JUDGMENT OF THE COURT

(Delivered from the Bench at Ottawa, Ontario

on June 5, 2002.)

EVANS J.A.

[1] We are not satisfied that the Tax Court Judge made any reviewable error when he dismissed an appeal by Sotirios Ladas against his GST assessments for the years 1995 and 1996. The Judge held that Mr. Ladas had not discharged his burden of proving that the Minister was wrong when he allocated equally between zero-rated supply and rated supply the price that customers paid to Mr. Ladas for wine and beer fermented and brewed on his premises.

[2] The Excise Tax Act, R.S.C. 1985, c. E-15, subsection 153(2), provides that the consideration for multiple supplies must be allocated reasonably among the supplies. There was evidence before the Judge that justified his finding that the 50-50 allocation made in this case between the zero-rated goods sold by Mr Ladas to his customers (juices, barley and hops) and the services that he rendered (including storage, racking, the use and cleaning of equipment, monitoring the fermentation and adding additives to the juices) was reasonable, a finding that he based partly on the credibility of Mr. Ladas' testimony.

[3] For these reasons, the application for judicial review will be dismissed with costs.

"John M. Evans"

J.A.

FEDERAL COURT OF APPEAL

NAMES OF COUNSEL AND SOLICITORS OF RECORD

DOCKET: A-46-01

STYLE OF CAUSE: SOTIRIOS LADAS v. HER MAJESTY THE QUEEN

PLACE OF HEARING: Ottawa, Ontario

DATE OF HEARING: June 5, 2002

REASONS FOR JUDGMENT OF THE COURT (Décary, Sexton, Evans, JJ.A.)

RENDERED FROM THE BENCH BY: Evans J.A.

APPEARANCES:

Mr. Sotirios Ladas Applicant on his own behalf

Mr. Charles Camirand for the Respondent

SOLICITORS OF RECORD:

Mr. Sotirios Ladas Applicant on his own behalf

Hawkesbury, Ontario

Mr. Morris Rosenberg For the Respondent

Deputy Attorney General of Canada

Summaries

Summary Under

Tax Topics - Excise Tax Act - Section 153 - Subsection 153(2)

50-50 allocation of consideration for two supplies made to arm’s length customers

It was accepted that the appellant, who operated a “brew-your-own” beer and wine business, was providing separate supplies: the zero-rated sale of ingredients for making the beer or wine: and a taxable supply of its facilities and services to assist its customers in brewing the beer or wine. The Tax Court upheld the Minister’s allocation under s. 153(2) between the two supplies on a 50-50 basis. In affirming this decision, Evans JA stated (at para. 2):

[S]ubsection 153(2), provides that the consideration for multiple supplies must be allocated reasonably among the supplies. There was evidence before the Judge that justified his finding that the 50-50 allocation made in this case between the zero-rated goods sold by Mr Ladas to his customers (juices, barley and hops) and the services that he rendered (including storage, racking, the use and cleaning of equipment, monitoring the fermentation and adding additives to the juices) was reasonable, a finding that he based partly on the credibility of Mr. Ladas' testimony.

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Ladas v. Canada, 2002 FCA 237

Citations2002 FCA 237

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2002 FCA 237