Bernard Chernos

The respondent credit union was assessed for business taxation under s. 7(1)(b) of The Assessment Act.

The assessment was confirmed by the Assessment Review Court but set aside by the District Court, which found the credit union's preponderant purpose was to provide loans to members at low cost, not to make a profit.

The Divisional Court and Court of Appeal upheld this decision.

The Supreme Court of Canada dismissed the appeal, affirming the 'preponderant purpose' test and concluding that the credit union was not carrying on a business for the purpose of the Act.

The appellant appealed a decision regarding its business tax assessment.

The issue was whether leasing photocopiers constituted the sale of a 'service' under s. 7(1)(e) of the Ontario Assessment Act.

The Supreme Court of Canada agreed with the dissenting reasons in the Court of Appeal, holding that 'services' must bear its ordinary meaning as the product of the work of the person supplying it.

The appeal was allowed, and the appellant was found assessable under the catch-all provision in s. 7(1)(j) rather than s. 7(1)(e).