The
Court:—This
is
an
appeal
from
the
Court
of
Appeal
of
Quebec.
The
appellant
is
a
trustee
in
bankruptcy
who
acquired
the
right
to
sell
goods
which
had
been
purchased
by
the
bankrupt
company.
He
argues
that
the
company
incurred
liability
to
pay
tax
on
the
goods
under
subsection
27(1)
of
the
Excise
Tax
Act,
RSC
1970,
c
E-13
at
the
time
the
goods
were
bought
and
that,
therefore,
the
tax
is
a
claim
provable
in
proceedings
under
subsection
95(1)
of
the
Bankruptcy
Act,
RSC
1970
c
B-3.
The
Court
of
Appeal
found
the
company
had
no
obligation
under
subsection
27(1)
of
the
Excise
Tax
Act
since
it
had
not
sold
the
goods
to
an
unlicensed
purchaser,
nor
retained
them
for
its
own
use
or
rental
to
others,
prior
to
becoming
bankrupt.
Accordingly,
the
tax
was
not
a
claim
provable
in
bankruptcy
under
the
Bankruptcy
Act.
The
court
concluded
that
the
appellant
was
liable
to
pay
tax
under
subsection
27(3)
of
the
Excise
Tax
Act
upon
his
sale
of
the
goods,
and
that
he
could
deduct
the
amount
so
paid
from
the
proceeds
of
sale
as
an
expense
of
administration.
We
adopt
the
reasons
of
the
Court
of
Appeal
of
Quebec
and
dismiss
this
appeal
with
costs.
Appeal
dismissed.
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