The King v. Imperial Tobacco Co. of Canada

The King v. Imperial Tobacco Co. of Canada

On the facts found, Imperial Tobacco did not collect sums in excess of the tax payable under the Act; its invoices reflected legitimate composite pricing and payment of the correct tax, so s.119 recovery failed and the appeal is dismissed while the cross‑appeal on penalty is allowed.

Source-derived case information.

Citation
[1939] SCR 322
Parties
Appellant/plaintiff: His Majesty The King; Respondent/defendant: Imperial Tobacco Company of Canada Limited
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
12 May 1939
Procedural Posture
Taxation Appeal (sales/consumption Tax) / Appeal and Cross Appeal to Supreme Court of Canada From the Exchequer Court of Canada; Final Judgment on Merits
Outcome
Appeal dismissed; cross‑appeal allowed; action dismissed with costs.
Legal Topics
Sales Tax, Special War Revenue Act S.119, Penalty for Collecting Excess Tax, Composite (tax‑included) Pricing
Source Language
english
Taxation Constitutional Law (ultra Vires) Civil Procedure Sales Tax Special War Revenue Act S.119 Penalty for Collecting Excess Tax Composite (tax‑included) Pricing

Source-derived case record

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Legal principles 2 Authorities cited 7 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

His Majesty The King

Appellant/plaintiff

Imperial Tobacco Company of Canada Limited

Respondent/defendant

Procedural Posture

Taxation Appeal (sales/consumption Tax) / Appeal and Cross Appeal to Supreme Court of Canada From the Exchequer Court of Canada; Final Judgment on Merits

Legal Issues

  1. 1 Whether the manufacturer collected sums in excess of amounts payable under the Special War Revenue Act s.86 and s.85 and therefore was liable under s.119
  2. 2 Whether the portion of s.119 requiring payment of collected excesses to the Crown was intra vires Dominion Parliament (raised but not decided)
  3. 3 Whether a penalty under s.119 was properly payable

Ratio Decidendi

On the facts found, Imperial Tobacco did not collect sums in excess of the tax payable under the Act; its invoices reflected legitimate composite pricing and payment of the correct tax, so s.119 recovery failed and the appeal is dismissed while the cross‑appeal on penalty is allowed.

Court Disposition

Appeal dismissed; cross‑appeal allowed; action dismissed with costs.

Orders

  • Appeal dismissed with costs
  • Cross‑appeal allowed with costs