Fiera Foods in its successful appeal from a Canada Revenue Agency ITC reassessment

Osler represented Fiera Foods in its successful appeal from a Canada Revenue Agency reassessment denying almost $6 million in input tax credits (“ITCs”).

In Fiera Foods v. His Majesty the King, Justice Owen ruled that the CRA cannot decide on the specific form of documentation required to substantiate an ITC, nor can they insist that the document be issued by the party claiming the ITC. Instead, the governing consideration is whether the information required under the Excise Tax Act is present. This ruling has a significant impact on the CRA’s ability to deny ITC’s and is a complete victory for Fiera Foods.

The tax court’s ruling in this case is one of the most important decisions since the implementation of GST in Canada. The CRA has long held the practice that ITC claimants must provide input tax information with sufficient evidence and in a documentation form to its liking. As a result, ITC claims would be denied by the CRA due to the type of documentation provided, despite sufficient evidence being presented.

The decision will prove significant, both for its discussion of evidentiary issues and in its analysis of the documentary requirements under the Excise Tax Act.

The Osler team consisted of Alex Cobb, Mark Sheeley, Alexandra McLennan, Emma Smith (Litigation), Al Meghji, Alan Kenigsberg, and Louis Tassé (Tax)