The object of this, I am advised, is that a local government, for example, could import an article free of duty, but in the case of a manufacturer or producer producing the same article he would be subject to tax. In that case when he sells to the local government he could get a refund so he would be put on even terms with the importer.
I think in cases under the Income Tax Act as to questions of priorities and the like we had the general right of taxing fairly well settled. As to the liquor case in British Columbia my recollection is that the Privy Council decided that we had the right.
That is one of the interesting constitutional questions that arise in Canada. We are advised that in all probability we have not the right to impose the tax on provincial governments unless they have the goods for resale.