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Application for judicial review dismissed; provincial tobacco tax pre-collection scheme applies to on-reserve wholesalers.
The applicant, a First Nation person operating a tobacco distribution business on a reserve, sought judicial review of the Minister's direction requiring wholesalers to pre-collect provincial tobacco tax from her.
She argued this violated her tax exemption rights under section 87 of the Indian Act and the Tobacco Tax Act regulations.
The Divisional Court dismissed the application, finding that the statutory exemption for 'exclusive use' does not apply to tobacco purchased for resale.
The court also held that the provincial pre-collection scheme is constitutional, does not conflict with the Indian Act under the paramountcy doctrine, and does not impair core federal jurisdiction under the interjurisdictional immunity doctrine.
Crown's deemed trust for unremitted retail sales tax has priority over a registered second mortgage.
Following a power of sale by the first mortgagee, surplus funds were paid into court.
The second mortgagee and the Ministry of Finance both brought motions claiming priority to the surplus funds.
The Ministry claimed priority for unremitted retail sales tax collected by the mortgagors.
The court held that the deemed trust provisions under section 22 of the Retail Sales Tax Act gave the Ministry priority over all other security interests, including the registered second mortgage.
The Ministry was awarded its claim from the surplus funds, with the balance to the second mortgagee.
