The Minister of Revenue appealed a trial decision that allowed an automobile dealership to exclude its wholesale financial liabilities for new vehicles from its paid-up capital as 'current accounts payable' under the Corporations Tax Act.
The Minister also appealed the trial judge's award of solicitor and client costs to the dealership.
The Divisional Court dismissed the tax appeal, finding no error in the trial judge's interpretation of the legislation or assessment of expert accounting evidence.
However, the Court allowed the costs appeal, reducing the award to a party and party scale because there was no finding of reprehensible conduct by the Minister to justify solicitor and client costs.
