Canada v. Lake City Casinos Limited
The appeal is dismissed because the Tax Court could reasonably find on the Agreed Statements of Facts that the tips were physically distributed by employees and never came into the employer's possession, so the Crown failed to prove the tips were paid by the employer under the Canadian Pacific test.
Source-derived case information.
- Citation
- 2007 FCA 100
- Parties
- Appellant: Her Majesty the Queen; Respondent: Lake City Casinos Limited
- Court
- Federal Court of Appeal
- Jurisdiction
- Canada
- Judgment Date
- 7 March 2007
- Procedural Posture
- Tax Appeal (federal Court of Appeal) / Judgment on Appeal From the Tax Court of Canada
- Outcome
- Appeal dismissed
- Legal Topics
- Tips, Employee Gratuities, Employer Possession, Remittance, Standard of Review
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Her Majesty the Queen
Appellant
Lake City Casinos Limited
Respondent
Procedural Posture
Tax Appeal (federal Court of Appeal) / Judgment on Appeal From the Tax Court of Canada
Legal Issues
- 1 Whether the tips were 'paid by the employer' within the meaning set out in Canadian Pacific Ltd. v. Canada
- 2 Whether the tips came into the possession of the employer and were remitted to employees
Ratio Decidendi
The appeal is dismissed because the Tax Court could reasonably find on the Agreed Statements of Facts that the tips were physically distributed by employees and never came into the employer's possession, so the Crown failed to prove the tips were paid by the employer under the Canadian Pacific test.
Court Disposition
Appeal dismissed
Orders
- Appeal dismissed
- Respondent awarded one set of costs
Full Case Text
Judgment text and source record
1 paragraphs
Canada v. Lake City Casinos Limited Court (s) Database Federal Court of Appeal Decisions Date 2007-03-07 Neutral citation 2007 FCA 100 File numbers A-222-06, A-223-06, A-224-06, A-225-06, A-226-06, A-227-06, A-228-06, A-229-06 Decision Content Date: 20070307 Docket: A-225-06 A-222-06 A-223-06 A-224-06 A-226-06 A-227-06 A-228-06 A-229-06 Citation: 2007 FCA 100 CORAM: DÉCARY J.A. NOËL J.A. SEXTON J.A. BETWEEN: HER MAJESTY THE QUEEN Appellant and LAKE CITY CASINOS LIMITED Respondent Heard at Vancouver, British Columbia, on March 7, 2007. Judgment delivered from the Bench at Vancouver, British Columbia, on March 7, 2007. REASONS FOR JUDGMENT BY: NOËL J.A. Date: 20070307 Docket: A-225-06 Citation: 2007 FCA 100 CORAM: DÉCARY J.A. NOËL J.A. SEXTON J.A. BETWEEN: HER MAJESTY THE QUEEN Appellant and LAKE CITY CASINOS LIMITED Respondent REASONS FOR JUDGMENT (Delivered from the Bench at Vancouver, British Columbia, on March 7, 2007) NOËL J.A. [1] These reasons dispose of the present appeal as well as appeals A-222-06 to A-229-06 inclusively. A copy of these reasons will accordingly be filed in those dockets as reasons for judgment. [2] In order to succeed, it was incumbent upon the Appellant to show that the tips were paid by the employer in the liberal sense attributed to this word by the Supreme Court of Canada in Canadian Pacific Ltd. v. Canada, [1986] 1 S.C.R. 678.This required a demonstration that the tips came into the possession of the employer who then remitted them to the employees. [3] Having regard to the Agreed Statements of Facts, it was open to the Tax Court Judge to hold that the tips were physically distributed by the employees themselves and not by the employer. [4] The appeal will be accordingly dismissed with one set of costs. “Marc Noël” J.A. FEDERAL COURT OF APPEAL SOLICITORS OF RECORD DOCKET: A-225-06, A-222-06, A-223-06, A-224-06, A-226-06, A-227-06, A-228-06, A229-06 STYLE OF CAUSE: HMQ v. LAKE CITY CASINOS LTD PLACE OF HEARING: Vancouver, British Columbia DATE OF HEARING: March 7, 2007 REASONS FOR JUDGMENT BY: DÉCARY J.A. NOËL J.A. SEXTON J.A. DELIVERED FROM THE BENCH BY: NOËL J.A. DATED: March 7, 2007 APPEARANCES: Ron D.F. Wilhelm FOR THE APPELLANT Raj Grewal Douglas H. Mathew FOR THE RESPONDENT SOLICITORS OF RECORD: John H. Sims, Q.C. Deputy Attorney General of Canada FOR THE APPELLANT Thorsteinssons Tax Lawyers Vancouver, B.C. FOR THE RESPONDENT