Xerox v. Regional Assessment Commissioner, et al.

Xerox v. Regional Assessment Commissioner, et al.

On a plain reading of s.7(1)(e) of The Assessment Act, leasing of facilities to permit customers to do their own photocopying does not constitute the sale of a "service"; accordingly Xerox is not assessable under s.7(1)(e) and must be assessed under s.7(1)(j); the Court of Appeal and Divisional Court orders are set...

Source-derived case information.

Citation
[1981] 2 SCR 137
Parties
Appellant / Plaintiff: Xerox of Canada Limited; Respondent / Defendant: Regional Assessment Commissioner, Region No. 10; Respondent / Defendant: Corporation of the Borough of North York
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
24 November 1981
Procedural Posture
Appeal — Taxation (business Tax) / Appeal to Supreme Court of Canada From the Court of Appeal for Ontario
Outcome
Appeal allowed; orders of the Court of Appeal and Divisional Court set aside; decision of the Ontario Municipal Board restored.
Legal Topics
Business Tax, Assessment Under S.7(1)(e), Definition of Services, Taxability of Equipment Leasing
Source Language
english
Taxation Municipal Assessment Statutory Interpretation Business Tax Assessment Under S.7(1)(e) Definition of Services Taxability of Equipment Leasing

Source-derived case record

Summary, issues, holding and outcome

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Parties

Xerox of Canada Limited

Appellant / Plaintiff

Regional Assessment Commissioner, Region No. 10

Respondent / Defendant

Corporation of the Borough of North York

Respondent / Defendant

Procedural Posture

Appeal — Taxation (business Tax) / Appeal to Supreme Court of Canada From the Court of Appeal for Ontario

Legal Issues

  1. 1 Whether leasing photocopying facilities constitutes the sale of a "service" under s.7(1)(e) of The Assessment Act, R.S.O. 1970
  2. 2 Whether the word "services" should bear its ordinary meaning or an extended definition for assessment purposes
  3. 3 Which subsection of s.7(1) applies to Xerox's business (e vs j)

Ratio Decidendi

On a plain reading of s.7(1)(e) of The Assessment Act, leasing of facilities to permit customers to do their own photocopying does not constitute the sale of a "service"; accordingly Xerox is not assessable under s.7(1)(e) and must be assessed under s.7(1)(j); the Court of Appeal and Divisional Court orders are set aside and the Ontario Municipal Board decision is restored.

Court Disposition

Appeal allowed; orders of the Court of Appeal and Divisional Court set aside; decision of the Ontario Municipal Board restored.

Orders

  • Set aside orders of the Court of Appeal for Ontario and the Divisional Court
  • Restore the decision of the Ontario Municipal Board