CSE Driver Enhancement v. Ha's Driving School

CSE Driver Enhancement v. Ha's Driving School

Where the contract was silent regarding HST, s.165 presumes the tax is payable in addition to the contract price; claimant satisfied s.223(1) by issuing invoices and disclosure after being informed by CRA and having remitted the tax, thus s.224 authorized recovery from the recipient. Consequently the claimant was entitled to judgment for the HST remitted; penalties were not awarded but prejudgment interest and filing fee costs were allowed.

Citation
2009 NSSM 42
Parties
Claimant: Charles Emerson c.o.b. as CSE Driver Enhancement; Defendant: Peter Ha c.o.b. as Ha’s Driving School
Court
Nova Scotia Small Claims Court
Jurisdiction
Canada
Judgment Date
7 August 2009
Procedural Posture
Small Claims Court / Decision
Outcome
Judgment for Claimant
Legal Topics
Harmonized Sales Tax (hst)/gst, Excise Tax Act Disclosure and Recovery Provisions, Small Supplier Registration, Quick Method of Accounting, Input Tax Credits, Contract Interpretation Re: Tax
Source Language
English
Tax Law Contract Law Commercial Law Harmonized Sales Tax (hst)/gst Excise Tax Act Disclosure and Recovery Provisions Small Supplier Registration Quick Method of Accounting Input Tax Credits +1 more

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Parties

Charles Emerson c.o.b. as CSE Driver Enhancement

Claimant

Peter Ha c.o.b. as Ha’s Driving School

Defendant

Procedural Posture

Small Claims Court / Decision

Legal Issues

  1. 1 Whether claimant may recover HST remitted to CRA for supplies from Feb 2006 to Sep 2007
  2. 2 Whether claimant complied with s.223(1) requirements to disclose tax in invoice or agreement
  3. 3 Whether contract prices were inclusive of HST or HST payable in addition where contract silent

Ratio Decidendi

Where the contract was silent regarding HST, s.165 presumes the tax is payable in addition to the contract price; claimant satisfied s.223(1) by issuing invoices and disclosure after being informed by CRA and having remitted the tax, thus s.224 authorized recovery from the recipient. Consequently the claimant was entitled to judgment for the HST remitted; penalties were not awarded but prejudgment interest and filing fee costs were allowed.

Court Disposition

Judgment for Claimant

Orders

  • Judgment for claimant in the amount of $10,320.76 CAD for HST remitted
  • Pre-judgment interest awarded from October 2007 at 4% per annum totaling $722.45 CAD