[2011] 4 F.C.R. D-3
Crown
Judicial review of decisions by respondents (Montreal Port Authority, Canada Broadcasting Corporation) refusing to pay late payment supplements (LPS) following decision in Montréal (City) v. Montreal Port Authority, 2010 SCC 14, [2010] 1 S.C.R. 427 obliging respondents to make payments in lieu of taxes (PILT) to applicant under Payments in Lieu of Taxes Act, R.S.C., 1985, c. M-13—In event of unreasonable delay, payment of interest in form of LPS possible under Crown Corporation Payments Regulations, SOR/81-1031—Respondents refusing to make full PILT, arguing legal deduction of equivalent of municipal tax increase from PILT, exclusion of value of silos, piers located in Port of Montréal—Respondents compelling applicant to institute legal proceedings, delaying full remittance of PILT—By acting unilaterally, respondents opening door to possibility of having to pay LPS—Taxpayers challenging notice of assessment, losing before courts cannot refuse to pay government interest because they thought they had good case—Taxpayers must pay amount due, without government specifically requesting taxpayers to do so—In cases where amount contested, interest accruing if taxpayers not paying amount on interim basis—Logic of tax system preserved for remittance of PILT—In event of unreasonable delay, taxing authority expecting to receive LPS if ultimately successful—Applications allowed.
Montréal (City) v. Montreal Port Authority (T-833-10, T-936-10, 2011 FC 937, Martineau J., judgment dated July 27, 2011, 16 pp.)