Licence Appeal Tribunal
FILE: 7555/LLA
CASE NAME: 7555 v. Registrar of Alcohol and Gaming
Appeal from the Notice of Proposal of the Registrar of Alcohol and Gaming under the Liquor Licence Act, R.S.O. 1990, c. L. 19 - to Revoke a Licence
374081 Ontario Limited operating as Bridge Tavern Applicant
-and-
Registrar of Alcohol and Gaming Respondent
DECISION AND ORDER
ADJUDICATOR: Kenneth W. Koprowski, Vice-Chair
APPEARANCES:
For the Applicants: George Brodimas, Agent
For the Respondent: Phillip Morris, Counsel
Heard in Sarnia
October 18, 2012
DECISION AND ORDER
BACKGROUND
The Registrar of Alcohol and Gaming (the "Registrar") under the Liquor Licence Act, (the "Act") issued a Notice of Proposal number 19393, dated July 12, 2012 (Exhibit #1), which proposed to revoke a licence. 374081 Ontario Limited, operating as Bridge Tavern (the "Applicant"), appealed this Notice of Proposal to the Licence Appeal Tribunal. The Notice of Appeal (Exhibit #2) is dated July 31, 2012.
FACTS
Pursuant to section 15(1) of the Liquor Licence Act ("the Act"), the Registrar, having reason to believe that the Applicant would be disentitled to a licence under section 6 of the Act, proposed to revoke the liquor licence of the Applicant, Number 90324, for the following reasons:
(a) Having regard to its financial position, the Applicant cannot reasonably be expected to be financially responsible in the conduct of its business; or
(b) The present/past conduct of the Applicant, or of its officers or directors, or of a shareholder who owns or controls 10% or more of its equity shares, or of a person having beneficial interest in the business of the Applicant, or of a person having responsibility for the management or operation of the business of the Applicant affords reasonable grounds for belief that its business will not be carried on in accordance with the law and with integrity and honesty; or
(c) The Applicant is in breach of a condition of its licence; or
(d) The Applicant is carrying on activities that are in contravention of the Act or the Regulations.
The particulars on which the Registrar relied were as follows, as quoted from the Notice of Proposal:
(a) Being the vendor within the meaning of the Retail Sales Tax Act and as an agent of the Ministry of Revenue, did, contrary to the Retail Sales Tax Act R.S.O. 1990 s. 11 and amendments thereto, fail to remit to the Minister of Revenue at the time or times and in the manner prescribed by the regulations, all amounts collected as or on account of tax.
(b) Being the vendor within the meaning of the Retail Sales Tax Act did, contrary to the Retail Sales Tax Act R.S.O. 1990 s. 13 and amendments thereto, fail to make returns to the Minister.
On the date scheduled for the hearing of this matter, the parties prepared and signed and filed with the Tribunal, as Exhibit #4, an Agreed Statement of Facts and Joint Submission on Disposition. The representative of the Registrar requested that the Tribunal incorporate the terms of Exhibit #4 into its Decision and Order.
The Registrar also filed with the Tribunal, as Exhibit #3, a statement of the current liabilities of the Applicant to the Minister of Finance under the Retail Sales Tax Act.
The Agreed Statement of Facts, in which the Applicant is referred to as the Licensee, states as follows:
The Licensee and the Registrar agree as follows (having been advised of the right to counsel and waived (sic) that right)
(1) The Licensee has collected and not remitted to the Ministry of Finance retail sales tax in the amount of $17,405.62, as set out in Exhibit #3 filed at the hearing.
(2) The retail sales tax constituted trust monies collected by the Licensee on behalf of the Minister of Finance.
(3) The amount set out in paragraph (1) was calculated as of October 17, 2012, and is subject to ongoing interest.
The Tribunal accepts the facts as set out in the above Agreed Statement of Facts and concludes that the Registrar has proved its case on a balance of probabilities under section 6(2)(a) of the Act relating to the allegation set out in paragraph (a) of the Notice of Proposal.
The Joint Submission on Disposition, in which the Applicant is referred to as the Licensee, states as follows:
The licensee and the Registrar agree to the following disposition as a matter of specific and general deterrence (having been advised of the right to counsel and waived (sic) that right):
(1) The Tribunal hereby revokes licence No. 90324 as of the end of business on Oct. 18, 2012, unless the Licensee remits to the Minister of Finance $3,000.00 by certified cheque.
(2) The Tribunal hereby revokes licence No. 90324 as of the end of business on Oct. 24, 2012, unless the Licensee remits to the Minister of Finance $7,000.00 by certified cheque.
(3) The Tribunal hereby revokes licence No. 90324 as of the end of business on Nov. 21, 2012, unless the Licensee remits to the Minister of Finance all of the outstanding retail sales tax debt by certified cheque.
Notwithstanding the wording in paragraphs (1), (2) and (3) of the Joint Submission on Disposition, the Tribunal notes that it is not the Tribunal that has the jurisdiction to revoke the Applicant's licence. Pursuant to section 23(11) of the Act, on an appeal of a Notice of Proposal to Revoke a Licence issued by the Registrar pursuant to section 15(1) of the Act and served in accordance with section 21(1) of the Act, the Tribunal, following a hearing to consider the proposal, may direct the Registrar not to carry out the proposal or to carry out the proposal, in whole or in part, and with any changes that the Tribunal considers appropriate. Section 23(11) reads as follows:
(11) Following a hearing to consider any other proposal referred to in subsection 21 (1), (2) or (3), the Tribunal may direct the Registrar not to carry out the proposal or to carry out the proposal, in whole or in part, and with any changes that the Tribunal considers appropriate, and the Tribunal may direct the Registrar to approve an application to which the proposal relates.
ORDER
In accordance with the Agreed Statement of Facts and the Joint Submission on Disposition filed with the Tribunal, and pursuant to the authority vested in it under the provisions of the Act, the Tribunal orders as follows:
The Tribunal directs the Registrar to carry out its proposal to revoke licence No. 90324 as of the end of business on October 18, 2012, unless the Applicant remits to the Minister of Finance the sum of $3,000.00 by certified cheque.
The Tribunal directs the Registrar to carry out its proposal to revoke licence No. 90324 as of the end of business on October 24, 2012, unless the Applicant remits to the Minister of Finance the sum of $7,000.00 by certified cheque.
The Tribunal directs the Registrar to carry out its proposal to revoke licence No. 90324 as of the end of business on November 21, 2012, unless the Applicant remits to the Minister of Finance all of the outstanding retail sales tax debt by certified cheque.
LICENCE APPEAL TRIBUNAL
Kenneth W. Koprowski Vice-Chair
Released: October 26, 2012