A brokerage firm has won an appeal against the city of Toronto regarding the proper tax rate it must pay.

The Friedberg Group (Friedberg & Co. Inc., AD Friedberg Inc. and Friedberg Mercantile Group) was originally assessed for business tax at the 75% rate from 1993 to 1997 on the basis it was engaged in “other financial business.” It conducts business as an investment dealer and portfolio manager.

However, it appealed that assessment, arguing it should have been assessed at the 50% rate on the basis it engages in business as an “agent”. A recent court decision involving Templeton Management Ltd. found that a financial institution operating as an agent is entitled to be taxed as an agent at the 50% rate.

The assessment was corrected for the 1993 and 1997 years, but it had not appealed its assessments for 1994, 1995 and 1996, and therefore sought a refund of the taxes for those years. The city denied the application for refund, a ruling upheld on judicial review by the Divisional Court.

However, on Wednesday the appeal court overturned that decision, allowing the appeal, quashing the decision of the city that the refund application is invalid and ordering that the city council consider the application for a partial refund of business taxes for the years 1994 to 1996.