User:Oceanflynn/sandbox/Irving Oil vs. The Queen
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| Irving Oil v. The Queen | |
|---|---|
| Court | Federal Court of Canada (F.C.C.) |
| Full case name | Irving Oil Ltd. v. Minister of National Revenue, (1988) 16 F.T.R. 253 (TD) |
| Decided | March 4, 1988 |
| Court membership | |
| Judge sitting | Francis C. Muldoon |
Irving OIl vs. The Queen, 1988 16 F.T.R. 253 (TD), is a 1988 decision of the Federal Court of Canada in which Justice Francis C. Muldoon ruled against the Minister of National Revenue of Canada and in favour of the 88-year-old K.C. Irving.[1] The case was heard on May 11, 1987.
Background
[edit]In the early 1970s, the Irvings and Standard Oil Company of California (Socal) shared equal ownership and control over Irving Oil Ltd[1] and in 1971, Kenneth "K.C." Irving entered into a tax shelter agreement in Bermuda with Socal.[2] Socal and Irving were the two major shareholders in Irving Oil a major shareholder with the Irving family in Saint-John, New Brunswick-headquartered Irving Oil as well as the Bermuda-headquartered Irving California Oil Co. Ltd. (Irvcal), one of Irving Oil's wholly owned subsidiaries.[2] Using this tax shelter, from 1971 through 1975, Irval purchased crude oil from Saudi Arabia for USD$2.10 a barrel, then sold it to Irving oil at USD$2.90 for the Irving Oil Refinery in Saint John, New Brunswick, Canada. Socal and the Irving family shared the profits—in the form of dividends—equally.[2] During those four years in the 1970s, the oil sales amounted to USD$1.2 billion.[2] On May 11, 1987, Revenue Canada said in a claim to the FCC, that the arrangement between Irving and Socal was was a "sham" which allowed Irving Oil to inflate its costs thereby reducing its taxable income.[2] This resulted in Irving paying no taxes from 1971 through 1975, in spite of making CDN$ million in profits.[2] In a 1978 Revenue Canada reassessment of Irving's tax returns, they disallowed approximately CDN$142 million in costs from 1971 to 1974 from the differential between the Socal price and the price Irving paid.[2]
Judgement
[edit]Justice Francis C. Muldoon
Reception
[edit]The decision drew criticism.
Aftermath
[edit]See also
[edit]- [[1988 reasons of the Federal Court of Canada
Citations
[edit]References
[edit]- (Federal Court of Canada March 4, 1988), Text. |T-3100-79 [1988] F.C.C. 18 May 11, 1987; March 4, 1988
- Wood, Chris (March 8, 1987). "Irving's taxing battle". Maclean's. The Complete Archive. Retrieved December 30, 2022.
External links
[edit][[Category:Federal Court of Canada cases [[Category:1988 in Canadian case law [[Category:Canadian ... case law