The Consumers’ Association of Canada has been granted intervener’s status in an appeal before the Supreme Court of Canada that will decide whether governments must repay taxpayers for moneys collected as illegal taxes. Representing the CAC in the Supreme Court are lawyers Joseph Arvay, Q.C. and Brent Olthuis.

The case, Kingstreet Investments v. New Brunswick, concerns a user charge levied by the province of New Brunswick on purchasers of liquor. Licensed establishments in Fredericton and Moncton sued for a declaration that the charge was invalid, and for recovery of amounts they had been forced to pay. The New Brunswick Court of Appeal ruled that the charge was an invalid tax and that, although they passed on the burden of the tax to their customers, the businesses were entitled to compensation for all the amounts they paid from the commencement of the suit.

In the Supreme Court, the CAC seeks to present the perspective of the consumer, which is lost amidst the arguments presented by the parties to the appeal. The CAC will argue that basic principles of democracy and fairness require governments to repay funds they have illegally obtained: it is unjust for governments to have immunization from suit where private persons do not. The CAC will also argue that those funds should be returned to the persons who bear the direct burden of the invalid tax and not to those who have passed the tax on through the chain of distribution.

“Protecting the rights of Consumers is always CAC’s top priority and this case will have enormous consequences for the rights of consumers who bear the direct burden of invalid taxes.” Said CAC President Bruce Cran. “The CAC welcomes the opportunity to make a contribution to the development of the law in this area.”

The Court is scheduled to hear the appeal on June 20th

CONTACT:
Bruce Cran - 613 291 7999
Joseph Arvay, QC - 604 689 4421