As Mitchell himself pointed out to the RDG on 28 October 1998, Eurig is also important as having cast doubt on the "fiscal chaos" theory propounded by 3 of 6 judges in Air Canada, ie the doctrine that there can be no recovery of taxes paid under an ultra vires statute as the effect on public finances would be too awful to contemplate. In Eurig, Major J. said for the court:

"46. In Air Canada v. British Columbia, [1989] 1 S.C.R. 1161, La Forest J. for three of the six members of the Court held that there is a general rule against recovery of taxes paid under unconstitutional statutes, with exceptions where the relationship between the state and a particular taxpayer resulting in the collection of the tax is unjust or oppressive in the circumstances.

47. *Even if* this Court were to adopt the rule articulated by La Forest J., it would not prevent recovery by the appellant in this case..."

(emphasis added)

Lionel