Imprimeries Transcontinental - Court of Quebec finds that a print shop producing advertising flyers was producing goods for sale

A print shop, which printed advertising flyers for customers such as Canadian Tire, Loblaws and Sobeys, acquired robotic equipment, which was used to transfer the newly printed flyers to pallets for distribution. The ARQ ultimately conceded that such robotic equipment was used in the manufacturing or processing of goods but maintained its position that the flyers did not qualify as goods for sale – so that it denied related Quebec investment tax credit (ITC) claims.

In confirming the availability of such ITCs, Fournier JCQ found that the contracts with the customers were contracts of sale rather than contracts for services – including finding that the print shop transferred ownership of the flyers to its customers, and that essentially the only services they received from it were the printing of the flyers which were sold to them. It was irrelevant that the ultimate users of the flyers did not pay for them.

The concept of equipment acquired to be used directly or indirectly primarily in the manufacturing or processing of goods for sale or lease appears in various contexts including the description of a Class 29 depreciable property.

Neal Armstrong. Summary of Imprimeries Transcontinental Inc. v. Agence du revenu du Québec, 2025 QCCQ 1926 under Class 29.