Canadian Constitution Foundation

 
The Kingstreet case arose from an 11% provincial “user charge” paid by the owners of bars, pubs and nightclubs to the government.  From 1985 to 1997, businesses were required to pay the 11% on top of the alcohol tax already included in the monopoly retail price set by the New Brunswick Liquor Corporation. The New Brunswick government did not dispute the trial judge’s finding that tax was illegal, violating the Constitution because it was outside of the province’s taxing powers.  The central issue on appeal was whether governments, when they impose taxes in violation of Canada’s constitution, should be required to return this money to the taxpayers who were wronged.  The governments of B.C., Alberta, and Manitoba joined the New Brunswick government in arguing that governments should be able to keep taxes collected in violation of Canada’s Constitution.

 
Writing for a unanimous Court, Justice Michel Bastarache accepted the argument put forward by the Canadian Constitution Foundation that governments must be held accountable in order to honour the constitutional principles of federalism, representative democracy, the rule of law, and democratic accountability; essentially the concept of “no taxation without representation.”  The Kingstreet decision highlights the importance of court challenges to restrain greedy governments from doing whatever they please to feed their never-ending appetite for money.