2 total
Appeal dismissed; payment for optional term extension was a distinct taxable supply subject to GST/HST.
The appellant, BC Hydro, appealed the Minister's disallowance of an input tax credit (ITC) of $910,517 under the Excise Tax Act.
The ITC related to an $8.5 million payment made by BC Hydro to a supplier for an optional term extension in an amended electricity purchase agreement.
BC Hydro argued the payment was made as a consequence of a modification to the agreement and thus deemed to include GST/HST under section 182 of the ETA.
The Tax Court of Canada dismissed the appeal, finding that the payment was consideration for a distinct taxable supply (the optional term extension) under section 165 of the ETA, and therefore section 182 did not apply.
Motion to strike granted; Crown cannot plead alternative assumptions of fact or unassessed alternative penalties.
The appellant estate brought a motion to strike portions of the Crown's Amended Reply.
The Tax Court struck paragraphs containing assumptions of fact pled in the alternative, noting the prejudice to the estate in not knowing the exact case to meet.
The Court also struck paragraphs seeking to apply penalties under subsections 162(7) and (10) of the Income Tax Act that were not originally assessed by the Minister, holding that the Court lacks jurisdiction to order the Minister to assess previously unassessed penalties.
The motion was granted with leave to amend.
