Ontario Superior Court Declares Residual Value Charges A Tax (January 23, 2008)

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In a written ruling, Mr. Justice Tranmer of the Ontario Superior Court of Justice declared that the Residual Value Charge imposed by the Ontario Ministry of Natural Resources is a tax that the Ministry had no lawful authority to impose or collect Through a court application started on August 20, 2007, Boniferro Mill Works asserted that the OMNR levied RVC’s that negatively affected the profitability and long-term sustainability of the hardwood lumber mill and all of its employees. A hearing was held in Sault Ste. Marie on December 4, 2007. The court upheld the application, ruling that Boniferro Mill Works is entitled to a complete accounting by the OMNR of all RVC’s paid since March 13th, 2003 and a refund of same together with interest in accordance with the Rules of Civil Procedure and the Courts of Justice Act. “This is great news for all of the employees of the hardwood mill in Sault Ste. Marie. This tax has been a financial burden on the growth and development of our company since 2003” stated Jim Boniferro, President and CEO of Boniferro Mill Works. “I look forward to concentrating on the many challenges facing our industry and continuing to build and grow on all of our past successes.” Boniferro Mill Works was represented by David Hamer and Gillian Slaughter, of the firm McCarthy Tétrault. David Hamer, expressed satisfaction with the court’s application of the settled legal principle that governments cannot levy any tax without clear authorization from the elected members of the legislature.