Fibreco Pulp Inc. v. Canada
T-2896-89 / T-3322-90 / T-3323-90
Muldoon J.
16/5/94
36 pp.
First action by Fibreco Pulp Inc. relating to assessment and determination by MNR for plaintiff's 1988 taxation year-Plaintiff in later two actions, Fibreco Export Inc., asking assessments and determinations for 1987 and 1988 taxation years be referred back to Minister for reconsideration and redetermination on same basis as in Pulp's earlier action-Whether Export's mill "facility" under Regional Development Incentives Act (RDIA) and regulations thereunder-Statutory interpretation of "certified property" in Income Tax Act, s. 127(9)-In 1988 taxation year, plaintiff engaged in construction of bleached chemithermo-mechanical pulp mill (BCTMP)-Property in respect of which investment tax credit claimed either certified property or qualified property-Certified property entitled to greater investment tax credit than qualified property-To be classified as certified property and to justify refundable tax credit of $13,880,138, investment tax credit carry-forward balance of $20,820,206, mill must be "facility" as defined by RDIA-Defendant's counsel seeking to introduce government's administrative practice in regard to legislation in question and use of Hansard as aids to interpretation of legislation-Hansard passages not to be introduced for purposes of interpreting legislation being debated in Senate or House of Commons, or for almost any other purpose-Hansard unreliable source of serious interpretation of legislation House of Commons and Senate participate in passing-Parliamentary debates need to rise above mere partisanship in order to be useful-In cases of ambiguity or of competing interpretations found in bill or resultant statute on one hand, and parliamentary budget papers or statements by Minister, better and safer course to find meaning in statute's expressions-Government breaching rule of law in seeking to adduce evidence of own previous practices to support alleged correctness of own interpretation of law-Ordinary (substantive) law should possess certainty, generality, equality-Advice obtained by Minister concerning definition of "certified property" under s. 127(10) not juridically conclusive nor binding on taxpayer appealing to Court to declare Minister's assessment wrong-S. 127(10) constitutionally inoffensive, not purporting to usurp judicial function-Memos and practices generated thereby not to be applied against person's or corporation's interest unless properly legislated and promulgated in public domain-Meaning of "resource-based industry" under Regional Development Incentives Regulations, 1974, s. 2(2)-Principal material used by plaintiff's mill to manufacture pulp "woodchips"-"Original location" of woodchips various sawmills supplying plaintiffs' BCTMP mill-Various sawmills obviously "consequence of human design"-Plaintiffs' mill operations not in "resource-based industry" on basis of law and evidence-Not "initial processing operation" as clearly described in exclusion (d) from definition of initial processing operation-Configuration of paragraph (b)'s drafting expressing legislator's will-Plaintiffs' appeal allowed-Assessments and determinations referred back to Minister for reconsideration and redetermination on basis mill facility under RDIA for purposes of ITA-Income Tax Act, S.C. 1970-71-72, c. 63, s. 127(9) (as am. by S.C. 1986, c. 6, s. 71), (10) (as am. by S.C. 1985, c. 45, s. 72)-Regional Development Incentives Act, R.S.C. 1970, c. R-3, s. 2-Regional Development Incentives Regulations, 1974, SOR/74-166, s. 2.