Scheme

Table of Contents

Cases

Excelsior Life Insurance Co. v. The Queen, 85 DTC 5164, [1985] 1CTC 213 (FCTD)

"An interpretation which is on key with the statute as a whole is to be preferred. I agree with counsel in respect of this principle but I do not agree that my finding brings disharmony to the statute."

The Queen v. Terra Mining & Exploration Ltd. (N.P.L.), 84 DTC 6185, [1984] CTC 176 (FCTD)

Since s. 20(1)(c) was thought to be almost a mirror image of s. 12(1)(e), case law as to the meaning of the latter was found to be relevant to the meaning of the former.

Dominion of Canada General Insurance Co. v. The Queen, 84 DTC 6197, [1984] CTC 190 (FCTD), aff'd 86 DTC 6154, [1986] 1CTC (FCA)

"If the [statutory] words are imprecise so as to give rise to the possibility of two constructions then they should be interpreted in the manner which will bring about the result which conforms to the apparent scheme of the legislation ... ." Here, the Parliamentary intent was that a policy reserve, which had been deducted from the previous year's income, should be included in income.

Qualico Developments Ltd. v. The Queen, 84 DTC 6119, [1984] CTC 122 (FCA)

"While it may not always be easy to find harmony and consistency in the provisions of the Income Tax Act the Court must, as it seems to me, strive to give to particular provisions, even though broadly worded, an interpretation which will conform to and give consistency as far as possible to the apparent scheme of the Act." (Thurlow, C.J.)

Highway Sawmills Limited v. Minister of National Revenue, 66 DTC 5116, [1966] CTC 150, [1966] S.C.R. 384

In connection with finding that land upon which the timber had been removed should be regarded as part of a timber limit, in order to avoid the deduction by the taxpayer of depreciation in excess of the net cost to it of the land, Cartwright J. stated (p. 5120):

"The answer to the question what tax is payable in any given circumstances depends, of course, upon the words of the legislation imposing it. Where the meaning of those words is difficult to ascertain it may be of assistance to consider which of two constructions contended for brings about a result which conforms to the apparent scheme of the legislation."

See Also

Erb v. The Queen, 00 DTC 1401 (TCC)

Bowman TCJ. applied the dictum in Shannon Realties, Ltd. v. Ville de St. Michel, [1924] A.C. 185 (PC) that "where alternative constructions are equally open, that alternative is to be chosen which will be consistent with the smooth working of the system which the statute purports to be regulating; and that alternative is to be rejected which will introduce uncertainty, friction or confusion into the working of the system".