Atinco Paper Products Ltd. v. The Queen, 78 DTC 6387, [1978] CTC 566 (FCA)

Assistance in the interpretation of trust documents may be derived from the testimony of the settlor.

After finding that an income-splitting "scheme" was ineffective because two supposed trusts had not been properly established, Urie, J. stated: "it is the duty of the Court to carefully scrutinize everything that a taxpayer has done to ensure that everything which appears to have been done, in fact, has been done in accordance with applicable law."

Gifts were made by the supposed settlor of a trust to her nephews absolutely unencumbered by any limitation on them other than an expressed hope that the ultimate benefit of the gifts would accrue to the benefit of the wives and children of the nephews. The gifts accordingly did not settle a trust nor could a later trust agreement be construed as a valid declaration of trust.