Private parties cannot expect page 125 of the Constitution Act of 1867 to be immune from paying taxes on the investment management services they receive from a Crown corporation. The interpretation of question 125 should not go beyond the objectives of federalism and democracy. It is clear that Parliament can require private purchasers of provincial services to pay as soon as possible for these services, without having page 125 despised. Moreover, S. 125 is not intended to immunize the crown against the contractual consequences or other negative economic effects it may have as a result of the imposition of a part of the private sector. The economic and contractual interests of the Crown cannot be favoured to the detriment of the interests of private parties. In this case, the property does not belong to the crown and is therefore not immunized under section 125. Section 125 does not immunize property that private parties have placed in the crown to their sole advantage of a tax on the services they have received from the crown with respect to this property. Ownership on the merits does not belong to the Crown, but to private parties, and the Crown`s legal title as an agent does not trigger immunity. An extension of immunity would exceed the objectives of page 125, extending immunity to the interests of private parties, making the Crown adverse contractual consequences for the renewal of immunity, and making Crown assets more commercially attractive, making it a tax haven for private parties. Justice Karakatsanis wrote (in Parators 1, 6, 32, 94-95, 109-110): « This appeal and the cross-sectional vocation take into account when the activities of a provincial crown corporation may be imposed by the federal government.
It requires the Court to assess the scope of the intergovernmental tax exemption provided at p. 125 of the Constitution Act of 1867 and to consider whether agreements reached by two levels of government to pay « taxes » can be binding on other crown units. In this case, there is no doubt that the federal GST is in the sense of « taxation. »