In a long-awaited decision, the Federal Court of Appeal ruled in favour of Villa Ste-Rose Inc. represented by partner Camille Janvier-Langis, and concluded that the tax authorities were not justified in imposing interest and penalties on the taxpayer. The Court therefore confirms the decision of the Tax Court of Canada rendered in favor of Villa Ste-Rose Inc.

Thus, like the trial judge, the Federal Court of Appeal ruled that an unregistered taxpayer who files its tax return late for a given period is not subject to interest and penalty under the Excise Tax Act if, on the other hand, by virtue of a refund to which it is entitled, no amount of tax is actually owed to the tax authorities for the given period.

"We are very pleased with the decision of the Federal Court of Appeal which ensures fair treatment for all taxpayers," said Camille Janvier-Langis, a tax partner in Dentons' Montréal office.

To read the full decision, click here (available only in French).

About Dentons

Across over 80 countries, Dentons helps you grow, protect, operate and finance your organization by providing uniquely global and deeply local legal solutions. Polycentric, purpose-driven and committed to inclusion, diversity, equity and sustainability, we focus on what matters most to you. www.dentons.com