Operating several nightclubs in fredricton and moncton

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Reference no: EM133330929

The taxpayer in this case, Kingstreet Investments, was a company operating several nightclubs in Fredricton and Moncton. From 1998 to 2004, they purchased their alcohol from the New Brunswick Liquor Corporation. In addition to paying the retail price, they also paid a surcharge ranging from 5 to 11 per cent. The total amount of taxes paid was over $1 million. Kingstreet variously characterized these charges as indirect taxes (which they argued were ultra vires the provincial government) and direct taxes (which they argued had been illegally imposed by regulation rather than by an act of the Legislature). The New Brunswick Court of Appeal held that the charge was an unconstitutional indirect tax.

What do you think the Supreme Court decided and why?

Reference no: EM133330929

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