Twentieth Century Fox Film Corp. v. MNR, 2001 DTC 5125 (FCTD)

The taxpayer had filed income tax returns reporting Part XIV tax payable, its returns were assessed as filed, and it did not file Notices of Objection. The taxpayer later bought an application for mandamus to compel the Minister to pay a refund of the tax. He argued that s. 18.5 of the Federal Court Act did not prohibit such an application on the ground that s. 164(1)(b) of the Act, in providing that the Minister shall refund any overpayment, contemplated an alternative process to filing Notices of Objection. In rejecting the submission, MacKay J. found (at p. 5128) that the Act does not provide any exception to the normal process of objecting to an assessment. Furthermore, he noted (at p. 5129) that:

"If no overpayment is claimed in the return and the Minister accepts the taxpayer's calculations of tax owed, the taxpayer is not entitled to a refund, unless there is subsequently a successful objection to, or objection, and appeal of, the Minister's assessment."

In rejecting a submission that the taxpayer, whose Canadian branch was responsible for distributing in Canada films, videos and other products produced by it, was exempt from Part XIV tax, MacKay J. noted that the taxpayer's submission failed to address the distinction that has been drawn between the art of "communication" and the industry of "communications".