Old HW-GW Ltd. v. Canada
A-455-91
MacGuigan J.A.
18/3/93
11 pp.
Appeal from Trial Division's decision ((1991), 91 DTC 5327) as to whether tax exemption granted by Puerto Rico to affiliate of Canadian corporation export incentive under Canadian income tax law-Respondent seeking deduction from taxable income of portions of dividends received from foreign affiliate, Bacardi Corporation -- Proper interpretation of Income Tax Regulations, s. 5907(10) at issue herein, not raised in argument before Trial Judge-Distinction between "listed" and "non-listed" countries created by s. 5907(11) -- "Exempt earnings" defined in Regulations, s. 5907(1)(b) -- Country referred to in s. 5907(10)(a) cannot on facts be United States but Puerto Rico as earnings taken place in Puerto Rico -- Regulations, s. 5907(10) and (11) not parallel relief provisions -- Respondent running afoul of category of export incentives as Puerto Rico distinct from United States-Respondent denied benefit of Regulations, s. 5907(10) and (11) -- Appeal [ho]allowed -- Income Tax Regulations, C.R.C., c. 945, s. 5907(1)(b),(10),(11).