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Taxable definition of French fried potato processing hashed out in Alberta court

The judge dismissed Cavendish's arguments, concluding the City of Lethbridge hadn't created a new recipe to determine such a case and its contention was baked in by previous court rulings

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Potato processor loses food fight over definition of french fry | Calgary Herald What is a french fry? Tax dispute forces Alberta court to hash over definition Copy Link Email X Reddit Pinterest LinkedIn Tumblr This advertisement has not loaded yet, but your article continues below. What is a french fry? Tax dispute forces Alberta court to hash over definition Copy Link Email X Reddit Pinterest LinkedIn Tumblr What is a french fry? Tax dispute forces Alberta court to hash over definition Cavendish said equipment used for packaging processed potatoes was part of fry-making process, rendering it non-assessable, but judge found argument half-baked Author of the article: Last updated 6 hours ago 2 minute read Join the conversation You can save this article by registering for free here. Or sign-inif you have an account. Fries are seen in this file photo. An Alberta court has frozen a french fry manufacturer’s bid to challenge the taxable definition of processed potatoes. had appealed its 2020 tax assessment by the Lethbridge Composite Assessment Review Board (CARB), arguing that the sum unfairly included packaging equipment and its automated storage and retrieval system (ASRS) as taxable structure and not machinery and equipment. Story continues below This advertisement has not loaded yet, but your article continues below. But the CARB dismissed the appeal at that time, concluding “none of the improvements at issue were (non-assessable) machinery and equipment,” states the Dec. 20 Court of King’s Bench ruling issued by Justice Johnna Kubik. Your weekday lunchtime roundup of curated links, news highlights, analysis and features. By signing up you consent to receive the above newsletter from Postmedia Network Inc. Thanks for signing up! The next issue of Noon News Roundup will soon be in your inbox. We encountered an issue signing you up. Please try again Interested in more newsletters? While that decision was upheld by judicial review, it was overturned on appeal in 2022 by the Alberta Court of Appeal, which ruled CARB had failed to provide sufficient reasons for its decision. But by then, the City of Lethbridge had assessed the plant located in the city on its 2021 taxes, on the same basis it had previously, leading to a food fight in Court of King’s Bench. The company was hoping to be granted further judicial review of the dispute but the City of Lethbridge argued the french fry case had already been salted away. “With respect to the packaging equipment and ASRS, the CARB concluded that the raw potato was transformed into a frozen french fry prior to being boxed, stored and deep frozen,” stated Kubik’s ruling in citing the city’s case. Story continues below This advertisement has not loaded yet, but your article continues below. Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Calgary Herald ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Calgary Herald ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Share your thoughts and join the conversation in the comments. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Sign In or Create an Account View more offers “The CARB determined that processing was complete at the point the frozen french fry was bagged. The CARB also determined that the ASRS was associated with storage and that any further freezing that occurred in the ASRS was related to quality, not processing … and thereby assessable.” But Cavendish Farms, noted Kubik, argued CARB had interpreted taxation regulations too narrowly, adding the packaging machinery and ASRS would be removed from the plant once it was sold, rendering it untaxable. Cavendish Farms opened the Lethbridge facility in 2019. But the judge concluded “the packaging equipment is anchored to the floor of the building by bolts and that the ASRS is a 115-foot high, 40,000-square-foot structure.” And she also said CARB’s ability to determine when the potatoes were fully processed into french fries played an important factor in hashing out what equipment was assessable by the city. “The CARB … accepted that deep freezing, while contributing to quality control prior to shipping, did not change an already frozen french fry into something different,” she wrote. “Effectively, the CARB drew a distinction between operational units which were related to processing, and those which were related to marketability.” Kubik dismissed Cavendish’s arguments, concluding the City of Lethbridge hadn’t created a new recipe to determine such a case and its contention was baked in by previous court rulings. If the two parties aren’t able to cook up an agreement on court costs within 30 days, a hearing could be scheduled, ruled Kubik. Trending 15 Christmas cartoons: The best holiday offerings from our editorial cartoonists Opinion Bell: Proposed Alberta pension plan is now on life support Southern Alberta group selects company, technology for its energy-from-waste project What is a french fry? Tax dispute forces Alberta court to hash over definition Share this article in your social network What is a french fry? Tax dispute forces Alberta court to hash over definition Copy Link Email X Reddit Pinterest LinkedIn Tumblr You must be logged in to join the discussion or read more comments. Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Visit our Community Guidelinesfor more information. Featured Local Savings This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. 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