Quebec Tax Body Rebuffed For Excluding Sales Tax Refunds

A Canadian appeal court dismissed a bid by Quebec’s tax authority to raise a sales tax bill by excluding tax refunds when calculating late fee penalties and interest.

Revenu Quebec wasn’t justified in imposing penalties and interests on Villa Ste-Rose Inc. because the Montreal-area senior’s residence had enough refunds to reduce its tax bill below zero, Justice Rene LeBlanc of the Federal Court of Appeal, said in a judgment posted online.

The agency must include refunds for Goods and Services Tax, or GST, when calculating the net tax amount upon which penalties and interests are owed in cases involving ...