The King v. Noxzema Chemical Company of Canada, Ltd.

The King v. Noxzema Chemical Company of Canada, Ltd.

Section 98 confers an administrative duty on the Minister to determine the fair price on which sales and excise taxes should be imposed; the Minister lawfully exercised that power, afforded the taxpayer a fair opportunity to be heard, and his determination is binding such that the Crown is entitled to recover the...

Source-derived case information.

Citation
[1942] SCR 178
Parties
Plaintiff Appellant: His Majesty The King on the Information of the Attorney‑General of Canada; Defendant Respondent: Noxzema Chemical Company of Canada, Limited
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
23 February 1942
Procedural Posture
Appeal: Recovery of Sales and Excise Taxes Under Special War Revenue Act / On Appeal From the Exchequer Court of Canada to the Supreme Court of Canada
Outcome
Appeal allowed; judgment of the Exchequer Court set aside; Crown entitled to additional taxes and statutory penalties; costs to appellant.
Legal Topics
Sales Tax, Excise Tax, Ministerial Determination of Taxable Base, Judicial Review of Administrative Action, Statutory Penalties
Source Language
english
Taxation Administrative Law Revenue Law Sales Tax Excise Tax Ministerial Determination of Taxable Base Judicial Review of Administrative Action Statutory Penalties

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Parties

His Majesty The King on the Information of the Attorney‑General of Canada

Plaintiff Appellant

Noxzema Chemical Company of Canada, Limited

Defendant Respondent

Procedural Posture

Appeal: Recovery of Sales and Excise Taxes Under Special War Revenue Act / On Appeal From the Exchequer Court of Canada to the Supreme Court of Canada

Legal Issues

  1. 1 Whether the Minister's determination under s.98 of the Special War Revenue Act is a purely administrative act or a quasi‑judicial act reviewable by the courts
  2. 2 Whether the Minister could determine a 'fair price' for taxation purposes that differed from the manufacturer's receipts from an affiliated distributor
  3. 3 Whether the taxpayer was afforded the procedural fairness required before the Minister's determination could bind the taxpayer

Ratio Decidendi

Section 98 confers an administrative duty on the Minister to determine the fair price on which sales and excise taxes should be imposed; the Minister lawfully exercised that power, afforded the taxpayer a fair opportunity to be heard, and his determination is binding such that the Crown is entitled to recover the additional taxes and statutory penalties.

Court Disposition

Appeal allowed; judgment of the Exchequer Court set aside; Crown entitled to additional taxes and statutory penalties; costs to appellant.

Orders

  • Set aside the judgment of the Exchequer Court of Canada (Maclean J.)
  • Judgment for the appellant for the additional sales and excise taxes determined by the Minister under s.98 of the Special War Revenue Act