The Minister of Finance appealed a decision declaring that the respondent is exempt from paying retail sales tax on wooden pallets it rents to ship consumer goods.
The application judge found the pallets were exempt under s. 7(1)41 of the Retail Sales Tax Act because they were attached to or incorporated into tangible personal property for the purpose of sale, and were not returnable containers.
The Court of Appeal upheld the decision, finding that the transfer of pallets to customers constituted a sale for consideration, as the rental costs were built into the product price, and the final product sold was a palletized package.
