Words and Phrases - "breakfast cereal"

a
86
b
44
c
76
d
50
e
38
f
31
g
18
h
14
i
73
j
2
k
2
l
32
m
56
n
25
o
38
p
80
q
3
r
76
s
89
t
46
u
15
v
9
w
23
y
2

Ike Enterprises Inc. v. The Queen, 2017 TCC 59

Summary Under
Tax Topics - Excise Tax Act - Schedules - Schedule VI - Part III - Section 1 - Paragraph 1(h)
granola in cereal aisle intended primarily as breakfast cereal

The appellant sold crystallized ginger; sticks (made of wheat, rice and spelt); and granola in special packaging in bulk to retailers for sale in their bulk bins. Before turning to these individual items, Smith J stated (at paras 47-48):

[T]he Act…ensure[s] that basic groceries are not subject to GST. …

[T]he exclusions listed in section 1 of Part III…should be narrowly construed. To take a broad interpretation of such exclusions would defeat the policy objective noted above.

In finding that the granola was not excluded from zero-rating under para. 1(h), Smith J found (at paras 68, 70):

… [M]any types of breakfast cereals can be snacked “right out of the box” and the suggestion on the packaging that you can do so, does not change a breakfast cereal into a snack item or convenience food. ...

While I agree that packaging and labelling will generally carry the day, I find that product placement within the grocery store is equally determinative. … [I]ts customers sold the product in question in the cereal aisle of the grocery store… .

Words and Phrases
breakfast cereal
Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Schedules - Schedule VI - Part III - Section 1 - Paragraph 1(e) crystallized ginger sold as baking ingredient rather than candy 251
Tax Topics - Excise Tax Act - Schedules - Schedule VI - Part III - Section 1 - Paragraph 1(f) fried sticks were sold as snack and were not baked 233