The respondent purchased timber from the Crown and harvested it pursuant to a licence under the Crown Forest Sustainability Act, 1994.
The price included a Residual Value Charge (RVC).
The respondent successfully applied for a declaration that the RVC was an unlawful tax.
The Crown appealed.
The Court of Appeal allowed the appeal, holding that the application judge erred in applying the test for distinguishing regulatory charges from taxes.
The RVC is a proprietary charge and a legitimate component of the price of timber set by the Crown as owner of the resource, not a tax.
