CPRC's claim for tax recovery based on 1880 Contract exemption dismissed as Kingstreet remedy inapplicable.
The Canadian Pacific Railway Company sought recovery of Income Tax, Large Corporations Tax, and Fuel Tax, arguing that Clause 16 of the 1880 Contract between CPRC and the federal government exempted it from these taxes.
The Court determined that Clause 16 has statutory and contractual force, but no constitutional force.
Applying contractual interpretation principles, the Court held that Clause 16 applies to the Large Corporations Tax, but not to Income Tax or Fuel Tax.
However, the Court found that the Kingstreet restitutionary remedy did not apply, as the taxes were not levied under an unconstitutional statute.
Consequently, CPRC's claim for recovery and declaratory relief was dismissed.
