Prince v ACE: extra-territorial effect of US tax laws?
By Rahim Punjani
Should a Canadian court exercise its jurisdiction to hear a class action lawsuit against Air Canada for improperly collecting US travel taxes on ticket purchases in Canada and on air travel in Canada?
That was the question in Prince v ACE Aviation Holdings Inc (2014 ONCA 285), in which the Ontario Court of Appeal declined to exercise its jurisdiction and stayed the class action on the basis that the US was clearly a more appropriate forum until the plaintiffs exhaust their rights in the US by first applying to the Internal Revenue Service (IRS) for a refund and, if refused, appealing to the US courts.
In Prince, a class action was commenced in Ontario against Air Canada for improperly collecting US travel taxes on ticket purchases in Canada and on air travel in Canada. Effectively, the plaintiffs alleged that Air Canada was giving extra-territorial effect to US tax laws. The plaintiffs claim raised issues about the taxes imposed by the US government, the methods used to collect those taxes, the immunity conferred on intermediaries who collect the taxes, the procedures established for the recovery of those taxes and the interpretation of the taxing statute…
Click on the link below to read the rest of the Dentons briefing.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from The Lawyer
Analysis from The Lawyer
Life in Canada is getting harder for firms as commodities prices fall and work volumes slow
Which firms are cutting it in this era of slimline rosters, and who are the GC new brooms making clean sweeps? The Lawyer can reveal all