Air Canada challenged the Ontario Minister of Finance’s decision to deny repayment of taxes levied under s. 2(4.1) of the Gasoline Tax Act on fuel transfers at the Ottawa airport.
Air Canada argued the tax was constitutionally inapplicable under the doctrines of interjurisdictional immunity and territorial jurisdiction.
The court held that the tax does not trench on or impair the core of federal aeronautics jurisdiction and that the transaction had a sufficient connection to Ontario to ground the province’s jurisdiction.
The applications were dismissed.
