J.B. FURNITURE MANUFACTURING LTD.
Decisions
v.
THE MINISTER OF NATIONAL REVENUE
Appeal No. AP-92-085
TABLE OF CONTENTS
Ottawa, Monday, August 11, 1997
Appeal No. AP-92-085
IN THE MATTER OF an appeal heard on June 16, 1997, under section 81.19 of the Excise Tax Act, R.S.C. 1985, c. E-15;
AND IN THE MATTER OF a decision of the Minister of National Revenue dated May 8, 1992, with respect to a notice of objection served under section 81.15 of the Excise Tax Act.
BETWEEN
J.B. FURNITURE MANUFACTURING LTD. Appellant
AND
THE MINISTER OF NATIONAL REVENUE Respondent
The appeal is dismissed.
Robert C. Coates, Q.C. ______ Robert C. Coates, Q.C. Member
Charles A. Gracey ______ Charles A. Gracey Member
Michel P. Granger ______ Michel P. Granger Secretary
The respondent decided that goods made by the appellant and transferred to related companies were not “sold” within the meaning of the Excise Tax Act. As such, federal sales tax, under subsection 50(1) of the Excise Tax Act, was payable on the sale price at which the related companies subsequently sold the goods rather than on the transfer price between the appellant and these companies. The appellant filed an unsubstantial brief and was not represented at the hearing.
HELD: The appeal is dismissed. Mere unsubstantiated allegations are not sufficient to displace the facts on which an assessment is based.
Tribunal Members: Arthur B. Trudeau, Presiding Member Robert C. Coates, Q.C., Member Charles A. Gracey, Member
Counsel for the Tribunal: David M. Attwater
Clerks of the Tribunal: Margaret Fisher and Anne Jamieson
Appearance: Frederick B. Woyiwada
This is an appeal under section 81.19 of the Excise Tax Act [1] (the Act) of a decision of the Minister of National Revenue. The respondent decided that goods made by the appellant and transferred to related companies were not “sold” within the meaning of the Act. As such, federal sales tax, under subsection 50(1) of the Act, was payable on the sale price at which the related companies subsequently sold the goods rather than on the transfer price between the appellant and these companies. This appeal is similar to one involving the same parties, wherein the Tribunal found that a sale did not occur between the appellant and one of the related companies. [2] The appellant filed an unsubstantial brief and was not represented at the hearing.
Having considered the file, including the submissions on behalf of the respondent, the Tribunal dismisses the appeal. Mere unsubstantiated allegations are not sufficient to displace the facts on which an assessment is based. [3]
[ Table of Contents]
1. R.S.C. 1985, c. E-15.
2. J.B. Furniture Manufacturing Ltd. v. The Minister of National Revenue, Appeal No. AP-89-260, March 16, 1992.
3. See, for example, A.S. 4 Steel Industries Ltd. v. The Minister of National Revenue, Canadian International Trade Tribunal, Appeal No. AP-89-132, June 11, 1992.
Initial publication: August 11, 1997