Maurice
Boisvert:—These
are
appeals
by
members
of
the
Hutterian
Brethren
Church
from
assessments
made
against
them
in
respect
of
income
for
the
taxation
years
1961
to
1966,
inclusive.
The
hearing
took
place
in
Edmonton
in
September
1971
and
was
conducted
under
the
Income
Tax
Act
(RSC
1952,
c
148
as
amended)
and
before
the
undersigned,
then
members
of
the
Tax
Appeal
Board.
Since
there
were
hundreds
of
appeals,
at
the
outset
of
the
hearing
all
of
them
were
called
but
it
was
agreed
(a)
that
the
Board
would
proceed
with
the
five
appellants
mentioned
above;
(b)
that
the
above
appeals
would
be
heard
together
on
common
evidence
with
one
argument
applying
to
each
of
them;
and
(c)
that
all
the
appellants
whose
appeals
were
called
at
the
outset
of
the
hearing
would
be
bound
by
the
judgment
to
be
rendered
in
the
appeals
heard.
it
is
the
appellants’
contention
that
members
of
the
Hutterian
Brethren
Church
are
not
taxable
under
the
Income
Tax
Act
for
the
following
reasons
expounded
in
one
of
the
Notices
of
Objection
to
the
assessments,
which
are
all
alike,
and
which
read
as
follows:
It
has
been
clearly
understood
that
the
Hutterian
Brethren
and
their
Religious
Foundation,
pledge
to
be
no
burden
on
the
Federal
Government
or
any
Provincial
Government
where
applicable,
by
way
of
provisions
for
Old
Age
Security
Pension,
Family
Allowance,
Widows
Allowance
and
Social
Welfare
assistance.
It
is
today,
and
always
has
been,
the
practice
of
the
Hutterian
Brethren
Religion
to
provide
for
their
aged,
weak,
sick,
poor
and
the
younger
generations
within
the
Hutterian
Brethren
Religion.
Therefore,
they
require
no
assistance
from
either
level
of
Government,
whether
it
be
Federal
or
Provincial.
1.
The
objects
and
powers
for
which
the
said
Church
is
formed
are:
to
obtain
for
its
members
and
their
dependent
minors,
as
also
for
the
novices,
helpers,
children
and
persons
in
need
under
its
care,
without
distinction
of
race,
class,
social
standing,
nationality,
religion,
age
or
sex,
spiritual,
cultural,
educational
and
economic
assistance
based
upon
the
life
and
mission
of
Jesus
Christ
and
the
Apostles,
in
the
spirit
and
way
of
the
first
Christian
community
in
Jerusalem
and
of
the
community
re-established
by
Jacob
Hutter
in
1533
at
the
time
of
the
origin
of
the
“Baptisers’
movement”'
in
such
a
way
that
the
members
achieve
one
entire
spiritual
unit
in
complete
community
of
goods
(whether
production
or
consumption)
in
perfect
purity
in
mutual
relationships,
absolute
truthfulness
and
a
real
attitude
of
peace,,
confessing
and
testifying
by
word
and
deed
that
Love,
Justice,
Truth
and
Peace
is
God’s
will
for
all
men
on
earth.
All
the
members
and
especially
the
Elders,
are
responsible
for
carrying
out
the
objects
of
the
Church
by
following
exactly
the
spontaneous
direction
of
the
Holy
Spirit
and
by
mutual
Stimulation
and
education.
2.
Complete
dedication
in
the
work
for
the
aims
and
objects
of
the
Church
is
expected
from
all
members
thereof.
The
capital
and
surplus
produce
and
surplus
funds
of
each
individual
congregation
and/or
community
of
the
Church
is
to
be
used
by
such
community
for
social
work
to
which
the
Church
is
constantly
dedicated,
helping
poor,
weak,
and
sickly
persons
who
need,
ask
for,
and
accept
this
help,
especially
children,
and
for
the
purchase
of
lands,
stock
and
equipment
for
the
use
of
such
congregation
and/or
community
in
order
that
the
members
thereof
may
maintain
themselves
and
acquire
funds
for
the
purposes
of
carrying
out
the
aims
of
the
Church.
3.
Under
Section
62;
(1),
(a);
or
under
1970,
25th
edition
of
the
Act,
Section
1709,*
they
fall
under
the
Exemption
of
Agricultural
Organizations
being
as
there
is
no
part
of
the
income
derived
from
the
Agricultural
Science
and/or
practice
is
payable
to,
nor
is
it
available
for
the
purpose
of
benefit
of
a
proprietor,
member,
or
shareholder.
Agricultural
Organizations
or
Organizations
concerned
with
the
advancement
of
Agriculture.
This
covers
the
practice
or
the
science
of
cultivating
the
ground,
but
it
is
not
confined
to
this
and
includes
all
activities
coming
within
the
ordinary
meaning
of
Agriculture
such
as
raising
livestock.
4.
Under
the
Constitutional
Rights
and
the
Human
Rights
Act
since
their
inception,
section
1709;
and
quotations
under
Section
1710;t
which
are
pointed
out
in
the
preceding
paragraph,
not
only
fall
in
line
with
the
Constitution
of
the
Hutterian
Brethren
and
the
Human
Rights
Act,
but
are
a
recognized
fact
in
accordance
with
the
accepted
Charter
of
the
Hutterian
Brethren
Religious
Order.
5.
We
therefore
suggest
that
the
Assessment
borne
on
the
Hutterian
Brethren,
of
Wilson
Siding
of
Hutterian
Brethren,
on
the
Assessment
Notices
dated
August
4th,
1970,
attached
hereto,
is
an
unjustifiable
Act
and
a
discrimination
against
their
Charter,
their
Constitution
of
which
their
Charter
is
based
on
and
accepted
and
the
Human
Rights
Act
in.
our
democratic
society.
6.
We
therefore
ask
that
the
Notice
of
Assessments
be
repealed
and
the
file
closed;
For
Reasons
as
follows:
(a)
They
are
an
accepted
Religious
Order.
(b)
They
are
no
burden
on
any
level
of
Government.
(c)
They
pledge
to
live
in
perpetual
poverty.
(d)
No
individual
has
any
personal
gain,
and
derives
no
monetary
benefit
or
any
benefit
whatsoever.
(e)
All
the
capital
surplus
of
the
Church
is
donated
to
the
congregation
for
the
support
of
widows,
orphans,
sick,
weak,
poor,
aged
and
preparation
for
accomodation
for
the
younger
generation.
(f)
They
also
come
under
Section
1709
and
1710
of
the
Act
[sic].
The
ministerial
stand
with
respect
to
the
assessments
is
expressed
in
a
notification
under
section
58
of
the
Act
which
states
as
follows:
WHEREAS
the
taxpayer
has
represented
to
the
Honourable
the
Minister
of
National
Revenue
that
he
is
a
member
of
the
Hutterian
Brethren
Church
and
as
such
adheres
to
the
practices
and
teachings
of
the
said
Church,
which
practices
and
teachings
include
the
holding
and
ownership
of
property
by
way
of
community
of
property,
as
set
forth
by
one
Peter
Rideman
in
a
book
or
work
entitled
“Account
and
Confession
of
Our
Religion,
Doctrine
and
Faith”,
AND
WHEREAS
the
taxpayer
has
also
represented
that
the
Constitution
of
the
Hutterian
Brethren
Church,
in
part
provides
that:
“All
property,
real
and
personal,
of
a
congregation
or
community,
from
whomsoever,
whensoever,
and
howsoever
it
may
have
been
obtained,
shall
forever
be
owned,
used,
occupied,
controlled
and
possessed
by
the
congregation
or
community
for
the
common
use,
interest
and
benefit
of
each
and
all
members
thereof,
for
the
purposes
of
said
congregation
or
community.”
and
“All
the
property,
both
real
and
personal,
that
each
and
every
member
of
a
congregation
or
community
has,
or
may
have,
own,
possess
or
may
be
entitled
to
at
the
time
that
he
or
she
joins
such
congregation
or
community,
or
becomes
a
member
thereof,
and
all
the
property,
both
real
and
personal
that
each
and
every
member
of
a
congregation
or
community
may
have,
obtain,
inherit,
possess
or
be
entitled
to,
after
he
or
she
becomes
a
member
of
a
congregation
or
community,
shall
be
and
become
the
property
of
the
congregation
or
community
to
be
owned,
used,
occupied
and
possessed
by
the
congregation
or
community
for
the
common
use,
interest
and
benefit
of
each
and
ail
of
the
members
thereof.”
and
“Each
and
every
member
of
a
congregation
or
community
shall
give
and
devote
all
his.
or
her
time,
labor
services,
earnings
and
energies
to
that
congregation
of
community
and
the
purposes
for
which
it
is
formed,
freely,
voluntarily
and
without
compensation
or
reward
of
any
kind
whatsoever
other
than
herein
expressed.”
and
“No
congregation
or
community
shall
be
dissolved
without
the
consent
of
all
of
its
members.”
and
“The
act
of
becoming
a
member
of
a
congregation
or
community
shall
be
considered
as
a
Grant,
Release,
Transfer,
Assignment;
and
Conveyance
to
that
congregation
or
community
of
ail
property,
whether
real
or
personal,
owned
by
any
person
at
the
time
of
his
or
her
becoming
a
member
of
the
congregation
or
community,
or
acquired
or
inherited
at
any
time
subsequent
thereto;
such
property
to
be
owned,
occupied,
possessed
and
used
by
the
congregation
or
community
for
the
common
use
of
ail
its
members.”
AND
WHEREAS
the
taxpayer
has
also
represented
that
he
is
a
member
of
congregation
or
community,
otherwise
also
known
as
a
colony,
known
as
the
Hutterian
Brethren
of
Wilson
colony,
and
of
a
company
known
as
The
Hutterian
Brethren
of
Wilson,
all
of
the
members
of
which
colony
and
company
are
members
of
the
Hutterian
Brethren
Church;
AND
WHEREAS
the
taxpayer
has
also
represented
that
the
Articles
of
Association
of
the
said
company,
in
part
provide
that:
“Each
and
every
member
of
said
Company
upon
becoming
a
member
thereof,
and
at
any
time
thereafter,
when
it
may
be
necessary,
or
whenever
required,
shall
sign,
execute,
acknowledge
and
deliver
to
said
Company
any
and
all
deeds,
mortgages,
assignments,
releases,
transfers
and
other
instruments
and
writings
that
may
be
necessary
to
give,
grant,
assign,
transfer
and
convey
ail
of
the
property
that
he
or
she
may
own,
have,
possess
or
be
entitled
to
at
any
time
that
he
or
she
joins
such
Company
or
becomes
a
member
thereof,
and
all
the
property,
both
real
and
personal,
that
he
or
she
may
have,
obtain,
inherit,
or
possess
after
he
or
she
becomes
a
member
of
said
Company,
and
all
such
property
shall
be
and
become
the
property
of
said
Company,
to
be
used,
occupied
and
possessed
by
it
for
the
common
use,
interest
and
benefit
of
each
and
all
the
members
thereof.”
AND
WHEREAS
the
taxpayer
has
also
represented
that
the
Memorandum
of
Association
of
the
said
company,
in
part
provides:
“That
all
the
property,
real
and
personal,
of
said
Company
howsoever
it
may
have
been
obtained,
shall
forever
be
owned,
used,
occupied
and
possessed
by
said
Company
for
the
common
use,
interest
and
benefit
of
each
and
all
the
members
thereof,
for
the
purposes
of
said
Company
during
the
time,
and
so
long
as
they
remain
members
thereof.”
“That
all
the
property,
both
real
and
personal,
that
each
and
every
member
of
said
Company
have,
or
may
have,
own,
possess
or
be
entitled
to
at
the
time
that
they
join
such
Company,
or
become
members
thereof,
and
all
the
property,
both
real
and
personal,
that
each
and
every
member
of
said
Company
may
have,
obtain,
inherit,
possess
or
be
entitled
to
after
they
become
members
of
said
Company,
to
be
owned,
used,
occupied
and
possessed
by
said
Company
for
the
common
use,
interest
and
benefit
of
each
and
all
of
the
members
thereof
as
aforesaid.”
“That
the
said
Company
shall
not
be
dissolved
without
the
consent
of
a
two-thirds
vote
of
all
its
members.”
AND
WHEREAS
in
the
1951
to
1966
taxation
year(s)
the
taxpayer,
in
common
with
the
other
members
of
the
colony
carried
on
the
business
of
farming
and
related
activities
for
the
common
use,
interest
and
benefit
of
each
and
all
of
the
members
of
the
said
colony;
AND
WHEREAS
the
taxpayer
was
assessed
for
income
tax
by
Notice(s)
of
Assessment
in
respect
of
the
taxation
year(s)
ended
December
31,
1961
to
1966
whereby
the
taxpayer’s
share
of
the
profits
from
the
activities
which
the
taxpayer
and
all
the
other
members
of
the
said
colony
performed
and
carried
on
for
their
common
use,
interest
and
benefit
as
income
for
that
(those)
year(s);
AND
WHEREAS
by
Notice(s)
of
Objection
the
taxpayer
has
objected
to
the
assessed
tax
for
the
reasons
therein
set
forth;
The
Honourable
the
Minister
of
National
Revenue
having
considered
the
assessment(s)
and
having
considered
the
facts
and
reasons
set
forth
in
the
Notice(s)
of
Objection
and
having
carefully
considered
the
representations
hereinbefore
recited
hereby
confirms
the
said
assessment(s)
as
having
been
made
in
accordance
with
the
provisions
of
the
Act
and
in
particular
on
the
ground
that
he
has
properly
taken
the
taxpayer’s
share
of
the
income
of
the
said
activities
which
the
taxpayer
and
ali
the
other
members
of
the
said
colony
performed
and
carried
out
for
their
common
use,
interest
and
benefit
into
account
in
computing
the
taxpayer’s
income
for
the
1961
to
1966
taxation
year(s)
(respectively)
in
accordance
with
the
provisions
of
sections
2,
3
and
4
and
paragraph
(c)
of
subsection
1
of
section
6
of
the
Act;
that
under
the
provisions
of
subsection
(4)
of
section
21
of
the
Act
the
Minister
has
deemed
the
income
of
the
spouse
of
the
taxpayer
derived
from
the
said
activities
to
belong
to
the
taxpayer.
The
question
to
be
determined
is
whether
the
members
of
the
above
Church
are
liable
to
pay
tax
on
income
because
they
consider
themselves
members
of
a
religious
order.
My
answer
is
that
they
are
under
their
creeds.
In
Exhibit
A-1,
which
is
the
Credo
of
the
Order,
the
following
question
and
answer
are
to
be
found:
Section
5:
Do
you
desire
thus
to
consecrate,
give
and
sacrifice,
yourself
with
soul
and
body
and
all
your
possessions
to
the
Lord
in
heaven
and
to
be
obedient
unto
Christ
and
his
Church?
A.
Yes.
The
Hutterian
Brethren
are
organized
in
colonies
and
villages.
In
Manitoba
there
are
30
of
them,
in
Alberta
about
60
and
in
Saskat-
chewan
six.
They
believe
in
and
practice
common
ownership
of
property.
Today,
their
organization
is
one
if
not
the
biggest
farming
business
in
Canada.
The
Brethren
were
expanding
so
much
that
the
Government
of
Alberta
passed
an
Act
to
limit
the
number
of
acres
to
be
held
as
communal
property.
The
Act
is
called
The
Communal
Property
Act
(RSA
1970,
c
59).
Reference
is
had
to
the
following
sections
of
the
above-mentioned
Act
(taken
from
the
transcript
of
evidence
at
pp.
269-270):
(2)
Includes
a
number
of
persons
who
propose
to
acquire
land
to
be
held
in
such
manner;
(2)(b)
Colony
means
a
number
of
persons
who
hold
land
or
common
interest
therein
as
communal
property
whether
as
owners,
lessees,
or
otherwise,
and
whether
in
the
name
of
trustees
or
as
congregation
or
organization;
(c)
Communal
property
means
land
held
by
a
colony
in
such
manner
that
no
member
of
the
colony
has
any
individual
or
personal
ownership
or
right
of
ownership
in
the
land,
and
that
each
member
shares
in
the
distribution
of
profits
or
benefits
according
to
his
needs
or
in
equal
measure
with
his
fellow
members.
(3)
Includes
Hutterites,
Hutterian
Brethren
and
Doukhobours.
Victor
Peters,
in
The
Hutterians
—
History
and
Communal
Organization
of
a
Rural
Group
in
Manitoba,
wrote
at
page
14:
The
economic
basis
for
the
colony
is
provided
by
a
highly
diversified
form
of
agriculture.
The
Hutterian
belief
makes
it
practically
mandatory
for
its
members
to
be
farmers.
When
the
colony
population
grows
beyond
a
certain
number,
a
branch
colony
is
set
up
on
newly-purchased
land.
A
division
takes
place,
and
half
the
community
moves
to
the
new
location.
Both
colonies,
after
that,
function
as
fuily-independent
units.
The
assets
of
a
colony,
depending
on
the
land,
the
machinery,
the
buildings,
etc.,
may
represent
the
cash
equivalent
of
from
one-half
to
one
million
dollars.
A
colony
will
generally
have
pigs,
cattle,
chickens,
ducks,
geese,
turkeys,
and
may
raise
diversified
crops
ranging
from
canary
seeds
to
feed
grains.
The
colony’s
own
economy
supplies
the
major
needs
of
the
community,
whose
greatest
problem
is
to
feed,
clothe
and
shelter
a
population
that
doubles
within
every
sixteen
to
twenty
years.
Spiritually,
the
colony
provides
a
sanctuary,
a
“Noah’s
Ark”,
where
the
members
of
the
brotherhood
find
safety
from
what
they
consider
the
sins
and
temptations
of
the
outside
world.
Economically,
the
colony
provides
its
members
with
complete
security
from
the
cradle
to
the
grave.
“These
people,”
says
the
Scientific
American,
“live
a
simple,
rural
life,
have
a
harmonious
social
order
and
provide
every
member
with
a
high
level
of
economic
security
from
the
womb
to
the
tomb.
They
are
a
homogenous
group,
free
from
many
of
the
tensions
of
the
American
melting-pot
culture.”
In
The
Church
and
the
World,
by
Claus
Felbinger
(Exhibit
A-3)
the
author
says
at
page
147:
Further
they
have
asked
us:
“As
governmental
authority
is
ordained
by
God
and
has
its
power
from
Him,
therefore
all
should
fear
and
honor
it
—
now
why
do
you
not
do
so?”
Mark
the
answer!
The
government
is
not
given
for
the
just
to
fear,
but
only
for
the
evil,
for
the
government
should
be
a
shield
to
the
just.
For
this
reason
the
Lord
has
placed
a
sword
in
its
hand,
and
its
annual
income
in
taxes,
interest,
duties,
etc.,
that
it
may
be
able
to
execute
its
office
and
protect
the
just.
If
it
does
not
do
so,
God
will
punish
it
the
harder.
There-
11
W
Eaton
and
Robert
J
Weil,
“The
Mental
Health
of
the
Hutterites’’,
in
Scientific
American,
Vol
189,
No
6,
(December
1953).
fore
we
are
gladly
and
willingly
subject
to
the
government
for
the
Lord’s
sake,
and
in
all
just
matters
we
will
in
no
way
oppose
it.
When,
however,
the
government
requires
of
us
what
is
contrary
to
our
faith
and
conscience
—
as
swearing
oaths
and
paying
hangman’s
dues
or
taxes
for
war
—
then
we
do
not
obey
its
command.
This
we
do
not
do
out
of
obstinacy
or
pride,
but
only
out
of
pure
fear
of
God.
For
it
is
our
duty
to
obey
God
rather
than
men
(Acts
5:29).
In
a
petition
addressed
to
the
Honourable
Woodrow
Wilson,
then
President
of
the
United
States
(Exhibit
A-4)
it
is
stated:
We
are
free
from
political
ambitions
and
recognize
civil
government
as
ordained
of
God.
We
honor
our
civil
authorities
and
in
our
daily
evening
prayer
meetings,
which
are
regularly
attended
by
all
our
members,
as
well
as
in
our
Sunday
services,
we
pray
for
our
government.
We
have
always
willingly
paid
taxes
on
our
real
estate
and
personal
property,
although
we
were
told
that
our
property
being
held
by
a
religious
corporation,
is
not
taxable
according
to
the
law.
It
need
not
be
said
that
we
do
not
permit
our
widows
and
orphans,
invalids
and
feeble-minded
to
become
a
burden
to
the
county
or
state.
For
proof
that
our
attitude
on
the
points
in
question
is
one
of
conviction,
and
not
of
arbitrariness,
we
would
respectfully
refer
you
to
our
Confession
mentioned
above,
as
well
as
to
our
life
and
history.
We
desire
to
serve
our
country
and
be
respectful
and
submissive
in
every
way
not
interfering
and
serving
our
God
consistently.
We
are
sincerely
thankful
for
having
been
granted
shelter
and
protection
by
our
government
and
for
having
enjoyed
full
religious
freedom
up
to
the
present
time,
and
we
are
quite
willing
to
do
something
for
the
good
of
our
country,
provided
thai
it
is
not
against
our
conscientious
convictions.
In
Confession
of
Faith,
by
Rideman,
the
following
excerpt
is
to
be
found:
Since
governmental
authority
is
ordained
by
God
and
hath
its
office
from
him,
the
payment
of
taxes
for
this
purpose
is
likewise
ordained
and
commanded,
as
Paul
saith,
“Thus
ye
must
also
pay
tribute.”
For
this
reason
we,
likewise,
willingly
pay
taxes,
tribute
or
whatever
men
may
term
it,
and
in
no
way
oppose
it,
for
we
have
learned
this
from
our
master,
Christ,
who
not
only
paid
it
himself,
but
also
commanded
others
to
do
so,
saying,
“Render
unto
Caesar
what
is
Caesar’s,
and
to
God
what
is
God’s.”
Therefore
we,
as
his
disciples,
desire
with
all
diligence
to
follow
and
perform
his
command,
and
not
to
oppose
the
government
in
this.
But
where
taxes
are
demanded
for
the
special
purpose
of
going
to
war,
massacring
and
shedding
blood,
we
give
nothing.
This
we
do
neither
out
of
malice
nor
obstinacy
but
in
the
fear
of
God,
that
we
make
not
ourselves
partakers
of
other
men’s
sins.
If
one
should
say,
“But
ye
ought
to
pay
tribute
to
whom
tribute
is
due,
therefore
ye
do
wrong
to
refuse
it,”
we
answer:
We
do
not
at
all
refuse
to
render
tribute
to
whom
it
is
due,
and
in
the
way
in
which
it
is
due.
For
God,
as
is
said
above,
hath
ordained
that
rulers
receive
taxes,
which
they
have
to
collect
and
raise
yearly.
Therefore
we
do
not
refuse
to
pay
the
same.
But
that
it
followeth
from
the
words
of
Paul
that
one
should
submit
to
every
whim
of
the
ruler
is
not
the
case.
That
this
is
true
is
shown
by
the
words
of
Paul
in
the
same
passage,
when
he
saith,
“Render
therefore
to
all
their
dues:
tribute
to
whom
tribute
is
due”.
He
doth
not
say,
“Render
whatsoever
and
however
much
they
want,”
but,
“Render
their
dues.”
That
is
the
yearly
taxes
which
are
ordained
by
God.
But
what
God
hath
not
ordained,
what
is
not
regular
taxation
—
that
is
given,
not
as
a
duty
and
as
the
ruler’s
due,
but
is
given
because
one
doth
so
willingly
and
because
one
agreeth
thereto
or,
in
most
cases,
because
one
is
pressed
and
coerced
to
do
so.
That
is
enough
to
conclude
from
the
above
texts
that
paying
taxes
is
not
against
their
religious
beliefs
and
practice
and
neither
against
the
teachings
of
their
philosophers
and
theologians.
Income
tax
is
a
necessity
to
make
sure
that
the
citizens
of
Canada
will
benefit
from
it.
It
is
a
necessity
to
make
Canada
a
better
country
for
all
Canadians
including
the
Hutterian
Brethren
Church’s
members.
To
be
tax
exempt
takes
more
than
being
a
religious
order.
The
appellants
relied
upon
subsection
62(1)
of
the
Act
which
says:
62.
(1)
No
tax
is
payable
under
this
Part
upon
the
taxable
income
of
a
person
for
a
period
when
that
person
was
(d)
an
agricultural
organization,
a
board
of
trade
or
a
chamber
of
commerce,
no
part
of
the
income
of
which
was
payable
to,
or
was
otherwise
available
for
the
personal
benefit
of,
any
proprietor,
member
or
shareholder
thereof;
(e)
a
Charitable
organization,
whether
or
not
incorporated,
all
the
resources
of
which
were
devoted
to
charitable
activities
carried
on
by
the
organization
itself
and
no
part
of
the
income
of
which
was
payable
to,
or
was
otherwise
available
for
the
personal
benefit
of,
any
proprietor,
member
or
shareholder
thereof;
(f)
a
corporation
that
was
constituted
exclusively
for
charitable
purposes,
no
part
of
whose
income
was
payable
to,
or
was
otherwise
available
for
the
personal
benefit
of,
any
proprietor,
member
or
shareholder
thereof,
that
has
not,
since
June
1,
1950,
acquired
control
of
any
other
corporation
and
that,
during
the
period,
(i)
did
not
carry
on
any
business,
(g)
a
trust
all
of
the
property
of
which
is
held
absolutely
in
trust
exclusively
for
charitable
purposes,
that
has
not,
since
June
1,
1950,
acquired
control
of
any
corporation
and
that
during
the
period,
(i)
did
not
carry
on
any
business,
From
the
evidence
the
appellants
do
not
fall
under
paragraph
(d)
of
the
above
subsection
because
they
were
farming
for
their
personal
benefit
as
well
as
to
assure
the
social
security
of
their
members.
Nor
do
they
fall
under
paragraph
(e)
for
the
same
reason
that
their
doing
so
is
to
derive
a
benefit
and
a
living.
And
they
do
not
fall
under
(f)
because
the
appellants
were
members
of
a
corporation
that
was
not
constituted
exclusively
for
charitable
purposes,
no
part
of
whose
income
was
payable
to,
or
was
otherwise
available
for
the
personal
benefit
of,
any
proprietor,
member
or
shareholder
thereof.
Were
the
appellants
members
of
a
corporation,
groups
of
persons,
which
did
carry
on
a
business?
Let’s
now
deal
with
this
question.
Under
section
2
of
the
Act
every
person
resident
in
Canada
must
pay
tax
on
income.
Under
the
Interpretation
Act,
(RSC
1952,
c
158)
it
is
said
that
“words
in
the
singular
include
the
plural
and
words
in
the
plural
include
the
singular’.
The
appellants
admitted
that
they
were
persons
residing
in
Canada
during
the
taxation
years
under
review.
In
paragraph
139(1
)(ac),
“person”
is
defined
as
follows:
(ac)
“person”
or
any
word
or
expression
descriptive
of
a
person
includes
any
body
corporate
and
politic,
and
the
heirs,
executors,
administrators
or
other
legal
representative
of
such
person,
according
to
the
law
of
that
part
of
Canada
to
which
the
context
extends.
As
persons
the
appellants
were
members
of
the
Hutterian
Brethren
Church
which
was
incorporated.
in
1951
by
an
Act
of
the
Canadian
Parliament
(15
Geo
VI,
c
77}.
Some
of
the
appellants
were
amongst
the
incorporators.
The
main
objects
of
the
corporation
are
to
be
found
in
section
4,
subsection
7(1),
section
8,
subsection
9(1),
sections
13,
14
and
15
of
the
above-mentioned
Act
of
Parliament
which
read
as
follows:
4.
The
objects
of
the
Corporation
shall
be
to
engage
in
and
carry
on
the
Christian
Religion,
Christian
worship
and
religious
education
and
teaching
and
to
worship
God
according
to
the
religious
belief
of
the
members
of
the
Corporation.
7.
(1)
The
Corporation
may
purchase,
take,
have,
hold,
receive,
possess,
retain
and
enjoy
property,
real
or
personal,
corporeal
or
incorporeal,
and
any
or
every
estate
or
interest
whatsoever
given,
granted,
devised
or
bequeathed
to
it,
or
appropriated,
purchased
or
acquired
by
it
in
any
manner
or
way
whatsoever,
to,
for,
or
in
favour
of
the
uses
and
purposes
of
the
Corporation
or
to,
for,
or
in
favour
of
any
religious,
educational,
eleemosynary
or
other
institution
established
or
intended
to
be
established
by,
under
the
management
of,
or
in
connection
with,
the
uses
or
purposes
of
the
Corporation.
8.
Subject
always
to
the
terms
of
any
trust
relating
thereto,
the
Corporation
may
also
sell,
convey,
exchange,
alienate,
mortgage,
lease
or
demise
any
real
property
held
by
the
Corporation
whether
by
way
of
investment
for
the
uses
and
purposes
of
the
Corporation
or
not,
and
may
also
from
time
to
time,
invest
all
or
any
of
its
funds
or
moneys
and
all
or
any
funds
or
moneys
vested
in
or
acquired
by
it
for
the
uses
and
purposes
aforesaid,
in
and
upon
any
security
by
way
of
mortgage,
hypothec
or
charge
upon
real
property,
and
for
the
purposes
of
such
investment
may
take,
receive
and
accept
mortgages
or
assignments
thereof,
whether
made
and
executed
directly
to
the
Corporation
or
to
any
corporation,
body,
company
or
person
in
trust
for
it;
and
may
sell,
grant,
assign
and
transfer
such
mortgages
or
assignments
either
wholly
or
partly.
9.
(1)
No
parcel
of
land
or
interest
therein
at
any
time
acquired
by
the
Corporation
and
not
required
for
its
actual
use
and
occupation,
and
not
held
by
way
of
security,
shall
be
held
by
the
Corporation,
or
by
any
trustee
on
its
behalf,
for
a
longer
period
than
ten
years
after
the
acquisition
thereof,
but
shall,
at
or
before
the
expiration
of
such
period,
be
absolutely
sold
or
disposed
of,
so
that
the
Corporation
shall
no
longer
retain
any
interest
or
estate
therein
except
by
way
of
security.
43.
The
Corporation
may
make
a
gift
of
or
lend
any
of
its
property,
whether
real
or
personal
for
or
to
assist
in
the
erection
or
maintenance
of
any
building
or
buildings
deemed
necessary
for
any
church,
college,
manse,
school
or
hospital
or
for
any
other
religious,
charitable,
educational,congregational
or
social
purpose
upon
such
terms
and
conditions
as
it
‘May
deem
expedient.
14.
(1)
The
Corporation
may,
from
time
to
time,
for
the
purposes
of
the
Corporation,
(a)
borrow
money
upon
the
credit
of
the
Corporation;
(b)
limit
or
increase
the
amount
to
be
borrowed;
(c)
make,
draw,
accept,
endorse,
or
become
party
to
promissory
notes
and
bills
of
exchange,
and
every
such
note
or
bill
made,
drawn,
accepted
or
endorsed
by
the
party
thereto
authorized
by
the
by-laws
of
the
Corporation
and
countersigned
by
the
proper
party
thereto
authorized
by
the
by-laws
of
the
Corporation,
shall
be
binding
upon
the
Corporation
and
shall
be
presumed
to
have
been
made,
drawn,
accepted
or
endorsed
with
proper
authority
until
the
contrary
is
shown
and
it
shall
not
be
necessary
in
any
case
to
have
the
seal
of
the
Corporation
affixed
to
any
such
note
or
bill;
(d)
mortgage,
hypothecate,
or
pledge
any
property
of
the
Corporation,
real
or
personal,
to
secure
the
repayment
of
any
money
borrowed
for
the
purposes
of
the
Corporation.
(2)
Nothing
in
this
section
shall
be
construed
to
authorize
the
Corporation
to
issue
any
note
or
bill
payable
to
bearer
thereof,
or
any
promissory
note
intended
to
be
circulated
as
money
or
as
the
note
or
bill
of
a
bank,
or
to
engage
in
the
business
of
banking
or
insurance.
15.
The
Corporation
may
also
invest
and
reinvest
any
of
its
funds
(a)
in
any
bonds
or
debentures
of
any
municipality;
or
‘public
school
corporation
or
district
in
Canada,
or
in
securities
of
or
guaranteed
by
the
Government
of
Canada
or
of
any
province
thereof;
or
(b)
in
first
mortgages
on
freehold
property
in
Canada
and
for
the
purposes
of
the
same
may
take
mortgages
or
assignments
thereof
whether
such
mortgage
or
assignments
be
made
directly
to
the
Corporation
in
its
own
corporate
name
or
to
some
company
or
person
in
trust
for
it,
and
may
sell
and
assign
the
same.
Prior
to
the
above
incorporation
on
August
1,
1950
the
congregations
or
communities
of
the
Hutterian
Brethren
signed
a
Constitution
oi
the
Hutterian
Brethren
Church
and
Rules
as
to
Community
of
Property.
In
the
recitals
of
said
Constitution
reference
is
had
to
communities
in
the
Provinces
of
Alberta
and
Manitoba.
Said
constitution
contained
Articles
of
Association,
section
2
of
which
reads
as
follows:
2.
The
objects
and
powers
for
which
the
said
Church
is
formed
are:
(a)
to
obtain
for
its
members
and
their
dependent
minors,
as
also
for
the
novices,
helpers,
children
and
persons
in
need
under
its
care,
without
distinction
of
race,
class,
social
standing,
nationality,
religion,
age
or
sex,
Spiritual,
cultural,
educational
and
economic
assistance
based
upon
the
life
and
mission
of
Jesus
Christ
and
the
Apostles,
in
the
spirit
and
way
of
the
first
Christian
community
in
Jerusalem
and
of
the
community
reestablished
by
Jacob
Hutter
in
1533
at
the
time
of
the
origin
of
the
“Baptisers’
movement”
in
such
a
way
that
the
members
achieve
one
entire
Spiritual
unit
in
complete
community
of
goods
(whether
production
or
consumption)
in
perfect
purity
in
mutual
relationships,
absolute
truthfulness
and
a
real
attitude
of
peace,
confessing
and
testifying
by
word
and
deed
that
Love,
Justice,
Truth
and
Peace
is
God’s
will
for
all
men
on
earth.
All
the
members
and
especially
the
Elders,
are
responsible
for.
carrying
out
the
objects
of
the
Church
by
following
exactly
the
spontaneous
direction
of
the
Holy
Spirit
and
by
mutual!
stimulation
and
education.
(b)
Complete
dedication
in
the
work
for
the
aims
and
objects
of
the
Church
is
expected
from
all
members
thereof.
The
capital
and
surplus
produce
and
surplus
funds
of
each
individual
congregation
or
community
of
the
Church
is
to
be
used
by
such
community
for
social.
work
to
which
the
Church
is
constantly
dedicated,
helping
poor,
weak
and
sickly
persons
who
need,
ask
for
and
accept
this
help,
especially
children,
and
for
the
purchase
of
lands,
stock
and
equipment
for
the
use
of
such
congregation
or
community
in
order
that
the
members
thereof
may
maintain
themselves
and
acquire
funds
for
the
purposes
of
carrying
out
the
aims
of
the
Church.
(c)
Each
congregation
or
community
of
the
said
Church
is
empowered:
i.
To
engage
in,
and
carry
on
farming,
stock-raising,
milling,
and
all
branches
of
these
industries;
and
to
manufacture
and
deal
with
the
products
and
by-products
of
these
industries.
ii.
To
Carry
on
any
other
business
(whether
manufacturing
or
otherwise)
which
may
seem
to
said
congregation
or
community
of
the
said
Church
capable
of
being
conveniently
carried
on
in
connection
with
its
business
or
calculated
directly
or
indirectly
to
enhance
the
property
or
rights
of
the
congregation
or
community;
iii.
To
acquire
or
undertake
the
whole
or
any
part
of
the
business,
property
and
liabilities
of
any
person
or
company
carrying
on
any
business
which
said
congregation
or
community
of
said
Church
is
authorized
to
carry
on,
or
possessed
of
property
suitable
for
the
purposes
of
the
congregation
or
community
of
said
Church;
iv.
To
apply
for,
purchase
or
otherwise
acquire
any
patents,
licenses,
concessions
and
the
like,
conferring
any
exclusive
or
non-exclusive
or
limited
right
to
use,
or
any
secret
or
other
information
as
to
any
invention
which
may
seem
capable
of
being
used
for
any
of
the
purposes
of
the
congregation
or
community
of
the
said
Church,
or
the
acquisition
of
which
may
seem
calculated
directly
or
indirectly
to
benefit
the
congregation
or
community
of
the
said
Church,
and
to
use,
exercise,
develop
or
grant
licenses
in
respect
of,
or
otherwise
turn
to
account
the
property,
rights
or
information
so
acquired;
v.
To
do
all
or
any
of
the
above
things
as
principal,
agents,
contractors,
or
otherwise
and
either
alone
or
in
conjunction
with
others;
vi.
To
do
such
other
things
as
are
incidental
to
or
conducive
to
the
attainment
of
the
above
objects.”
In
section
37
of
the
above
Articles,
it
was
agreed
by
the
members
of
all
the
communities
of
the
Church
that:
37.
All
property
real
and
personal,
of
a
congregation
or
community
from
whomsoever,
whensoever,
and
howsoever
it
may
have
been
obtained,
shall
forever
be
owned,
used,
occupied,
controlled
and
possessed
by
the
congregation
or
community
for
the
common
use,
interest,
and
benefit
of
each
and
all
members
thereof,
for
the
purposes
of
said
congregation
or
community.
The
incorporation
was
made
for
the
purposes
of
pursuing
the
powers
and
objects
referred
to
above.
Following
a
long-established
tradition,
the
Corporation
did
organize
communities
called
colonies
for
the
purpose
of
farming
large
areas
of
arable
land.
In
The
Hutterite
Way
(supra),
Paul
S
Gross
says
at
pages
8
and
9:
In
the
early
16th
Century
in
Austria
and
Moravia
some
Hutterian
households
had
more
than
1000
inhabitants,
and
nearly
all
of
them
had
over
500
inhabitants.
Toward
the
end
of
the
century
there
were
possibly
as
many
as
70,000
members
scattered
over
some
90
Bruderhofs,
although
no
complete
census
was
ever
taken,
as
each
colony
was
relatively
independent
of
the
others.
They
developed
a
highly
organized
industry
and
agriculture,
the
efficiency
of
which
earned
them
the
protection
of
the
great
landlords,
who
for
some
years
resisted
the
demands
of
the
imperial
government
to
eject
these
valued
tenants.
Farming
always
played
a
great
part
in
the
economic
structure
of
the
communities,
supplying
not
only
the
daily
needs
of
the
members,
but
also
the
raw
materials
for
a
variety
of
crafts.
Among
the
crafts
practiced
by
the
Hutterites
at
that
time
were
milling,
tanning,
spinning,
weaving,
baking,
saddlery,
boo-t-making,
blacksmithing,
carpentry,
building,
pottery,
cutlery;
while
some
members
were
barbers
and
others
were
doctors.
Our
medical
books
of
the
16th
century
are
a
significant
study
in
themselves
and
we
cannot
even
touch
upon
them
here,
except
to
say
that
they
were
hundreds
of
years
in
advance
of
the
times.
Altogether
it
is
no
wonder
that
they
succeeded
in
finding
the
sympathy
of
the
manorial
lords
who
quickly
recognized
their
value
as
craftsmen.
and
good
tillers
of
the
soil.
For
each
handicraft
guild
the
brotherhood
drew
up
rules
which
were
amended
by
time
and
experience.
Everyone
in
the
community
did
what
was
expected
of
him,
adding
what
extra
things
his
qualities
and
his
position
enabled
him
to
add.
Education,
which
in
those
days
touched
only
a
few
privileged
people,
was
so
highly
developed
among
the
Hutterian
brethren
that
illiteracy
was
unknown
among
them
at
a
time
when
rural
Europe
was
almost
completely
illiterate.
In
Canada
as
in
other
countries,
the
Hutterian
Brethren
pursued
the
business
of
farming
successfully.
in
their
case,
the
common
saying
is
true:
A
good
farmer
makes
a
good
farm.”
To
keep
in
line
with
the
objects
of
their
organization,
in
1926
the
colony
of
Wilson
was
incorporated
under
The
Companies
Act
of
Alberta;
in
1951
the
Scotford
colony
followed
and
in
1968
the
Miburn
colony
was
also
incorporated.
The
members
who
signed
the
petition
for
the
incorporation
of
the
colonies
described
themselves
as
“farmers”.
The
objects
of
the
incorporation
were
the
same
as
those
enumerated
above
in
the
Articles
of
Association
of
the
Constitution.
Reference
must
be
had
to
the
following
paragraphs
of
the
Articles
of
Association
for
the
incorporation
of
one
of
the
colonies
mentioned
above,
said
Articles
being
the
same
for
the
three
colonies:
7.
All
the
powers,
privileges,
business
and
property
of
said
Company
shall
be
exercised,
transacted,
conducted
and
controlled
by
the
Trustees
(one
of
whom
shall
be
designated
as
Kirche
Altester;
and
one
of.
whom
shall
be
designated
as
Kirche
Gehulfe
Altester;
and
one
of
whom
shall
be
designated
as
Householder).
22.
The
Householder
of
said
Company
shall
keep
the
books
and
accounts,
and
have
the
custody
of
the
books,
papers,
accounts,
instruments,
and
writings
of
said
Company,
and
shall
keep
the
minutes
and
entries
of
all
the
transactions
of
all
the
meetings
of
the
members
and
board
of
Trustees
of
said
Company,
and
to
attest
any
and
all
deeds,
mortgages,
liens,
bonds,
leases,
releases,
satisfactions,
agreements,
instruments,
transfers,
conveyances,
bills
of
sale,
obligations,
guarantees,
instruments,
evidences
of
debt
and
writings
of
said
Company,
and
do
each
and
every
act
and
thing
necessary,
and
that
may
be
required
by
the
said
Company
and
Board
of
Trustees
thereof.
24.
The
Householder
of
said
Company,
subject
to
the
directions
and
instructions
of
the
Kirche
Altester,
shall
receive
and
disburse
all
the
money
of
said
Company
and
keep
book
accounts
of
all
the
notes,
bonds,
mortgages,
debts
and
obligations
thereof,
and
of
all
financial
transactions
of
said
Company,
and
render
an
account
thereof
whenever
required
by
said
Company
or
Trustees,
and
do
each
and
every
other
thing
that
may
be
required
of
them
to
do
from
time
to
time
by
said
Company
or
Trustees,
provided
however
that
no
cheque
or
other
voucher
shall
be
issued
without
the
signature
of
the
Kirche
Altester
or
Kirche
Gehulfe
Altester
in
addition
to
the
Householder’s
signature,
or
whenever
necessary,
the
signature
of
the
Kirche
Altester
and
Kirche
Gehulfe
Altester
shall
be
sufficient.
30.
The
Trustees
of
said
Company
shall
have
the
power
and
authority
to
contract
for
and
buy,
sell,
assign,
transfer,
encumber,
mortgage
and
dispose
of
any
and
all
the
personal
property
of
said
Company,
and
contract
for
and
make
and
incur
any
and
all
contracts,
debts,
obligations,
notes,
mortgages,
liens,
guarantees,
leases
and
liabilities
that
they
may
deem
necessary
and
proper
for
said
Company
in
the
ordinary
exercise,
transaction,
conduct
and
control
of
power,
privilege
and
property
of
said
Company
and
to
do
and
perform
any
and
all
acts
and
things
necessary
and
proper;
to
engage
in
and
carry
on
the
Christian
religion,
religious:
teachings
of
said
Company;
and
to
engage
in
and
carry
on
and
conduct
farming,
agriculture,
milling,
manufacturing
of
flour
and
other
articles
from
agricultural
products;
and
mechanics
and
mechanical
arts
necessary
thereto;
and
to
buy
and
sell.
and
deal
in
said
agricultural
products
and
products
made
and
manufactured
therefrom;
and
other
articles,
materials,
machinery,
implements
and
things
belonging
to
or
necessary
to
engage
in,
carry
on
and
conduct
said
business,
act
and
things;
and
to
make
contracts
and
negotiate
for,
and
make,
execute
and
deliver
any
and
all
necessary
or
proper
transfers,
conveyances,
bills
of
sale,
contracts,
agreements,
obligations,
notes,
instruments,
mortgages,
liens,
guarantees,
satisfactions,
leases,
releases,
transfers,
evidences
of
debt
and
other
papers
and
instruments
necessary
or
proper
therefor
or
thereto,
and
to
do
and
perform
said
acts
and
things
hereby
authorized
and
empowered
to
do
and
perform;
provided
however
that
transfers,
mortgages,
assignments,
conveyances,
hypothecations,
pledges
or
other
instruments
relating
to
or
affecting
land
or
real
property
shall
not
be
executed,
signed,
sealed
or
delivered
without
the
written
consent
of
a
majority
of
the
male
members
of
the
Company
first
had
and
obtained.
31.
Every
member
of
said
Company
upon
becoming
a
member
thereof,
and
at
any
time
thereafter,
when
it
may
be
necessary,
or
whenever
required,
shall
sign,
execute,
acknowledge
and
deliver
to
said
Company
any
and
all
deeds,
mortgages,
assignments,
releases,
transfers
and
other
instruments
and
writings
that
may
be
necessary
to
give,
grant,
assign,
transfer
and
convey
all
of
the
property
that
he
or
she
may
own,
have,
possess
or
be
entitled
to
at
any
time
that
he
or
she
joins
such
Company
or
becomes
a
member
thereof,
and
of
all
the
property,
both
real
and
personal
that
he
or
she
may
have,
obtain,
inherit,
or
possess
after
he
or
she
becomes
a
member
of
said
Company,
and
all
such
property
shall
be
and
become
the
property
of
said
Company,
to
be
used,
occupied
and
possessed
by
it
for
the
common
use,
interest
and
benefit
of
each
and
all
the
members
thereof.
33.
The
Trustees
of
said
Company
shall
have
no
power
or
authority
to
contract
for,
sell,
grant,
convey,
transfer,
lease,
mortgage
or
encumber
any
of
the
lands
or
real
property
of
said
Company
without
being
duly
authorized
so
to
do
by
the
said
Company;
and
the
Trustees
may.
be
authorized
and
empowered
to
contract
for,
sell,
grant,
convey,
transfer,
lease,
mortgage
and
encumber
any
and
all
of
the
lands
and
real
property
of
said
Company,
and
to
do
and
perform
any
other
act
relating
thereto
at
any
annual,
general
or
special
meeting,
thereof,
subject
always
to
the
provisos,
restrictions,
and
limitations
herein
contained.
34.
The
Trustees
shall
have
no
power
or
authority
to
buy,
purchase
or
negotiate
for,
or
enter
into
any
contracts,
agreement,
writings
or
obligations
to
buy,
purchase
or
obtain
any
land
or
real
property
for
said
Company
unless
they
have
been
authorized
or
empowered
so
to
do;
and
said
Trustees
may
be
so
authorized
and
empowered
to
buy,
purchase,
negotiate
for
and
enter
into
any
contract,
agreement,
writing
and
any
obligation
to
buy,
purchase
and
obtain
any
lands
and
real
property
for
said
Company,
and
do
and
perform
any
act
or
thing
relating
thereto,
at
any
annual,
general
or
special
meeting
thereof.
37.
Each
male
member
shall
have
one
vote
and
no
more,
and
only
male
members
shall
have
the
right
to
vote.
There
cannot
be
any
doubt
that
the
Church
was
engaged
in
the
business
of
farming
and
part
of
its
income
was
divided
between
the
members
in
nature
or
otherwise.
What
is
taxable?
Paragraph
6(1
)(j)
gives
the
answer:
6.
(1)
Without
restricting
the
generality
of
section
3,
there
shall
be
included
in
computing
the
income
of
a
taxpayer
for
a
taxation
year
(j)
amounts
received
by
the
taxpayer
in
the
year
that
were
dependent
upon
use
of
or
production
from
property.
.
.
“Amount”
is
defined
in
subsection
139(1)
of
the
Act
as
follows:
139.
(1)
In
this
Act,
(a)
“amount”
means
money,
rights
or
things
expressed
in
terms
of
the
amount
of
money
or
the
value
in
terms
of
money
of
the
right
or
thing;
In
Simon's
Taxes,
3rd
edition,
Part
E6,
page
1062,
we
find
the
following
comment:
E6.521
Income
of
Roman
Catholic
Communities
As
regards
the
income
of
Roman
Catholic
religious
communities
or
of
their
members,
the
precise
legal
position
as
respects
the
title
to
such
income.
which
is
in
fact
treated
by
the
community
as
belonging
to
the
common
fund,
is
often
difficult
to
ascertain.
In
practice,
in
the
case
of
certain
Orders
(such
as
those
engaged
in
charitable
work
among
the
poor)
charitable
relief
is
given;
in
the
case
of
the
Contemplative
Orders
and
other
Orders
which
are
not
in
law
capable
of
being
regarded
as
charities,
a
proportion
of
the
aggregate
income
not
exceeding
£150
per
monk
or
nun
(as
representing
the
amount
applied
for
the
maintenance
of
each
individual)
is
regarded
as
his
or
her
income
for
the
purposes
of
relief
from
tax.
The
above
comment
is
an
answer
to
the
argument
offered
by
Mr
Stagg,
who
acted
on
behalf
of
the
appellants.
He
tried
to
assimilate
the
Brethren
to
the
Roman
Catholic
Orders
established
throughout
Canada.
in
some
of
the
financial
statements
produced
as
exhibits,
it
is
shown
that
the
income
attributed
to
members
was
classed
as
salaries,
as
is
the
case
for
the
Miburn
colony.
in
the
case
of
the
Wilson
colony,
for
each
year
from
1961
to
1968,
each
member
was
allocated
an
income
designated
as
“income
share”
less
personal
exemption
establishing
the
taxable
income
for
each
member
for
each
taxation
year
involved.
In
the
case
of
the
Scotford
colony,
there
is
a
statement
of
income
taxes
payable
for
the
taxation
years
1961
to
1967.
The
amount
set
is
$5,117.50.
The
Wilson
colony
filed
income
tax
returns
for
the
fiscal
period
ended
December
31,
1961
and
reported
no
taxable
income.
The
nature
of
the
business
is
indicated
as
“Religious
Organization”.
A
similar
return
was
filed
for
the
taxation
year
ended
December
31,
1963.
For
the
taxation
year
1970
the
designation
of
the
nature
of
the
business
is
“Agriculture
and
Religious
Order”.
The
balance
sheet
as
at
December
31,
1970
shows
assets
in
the
amount
of
$1,235,855.53,
liabilities
in
the
amount
of
$1,060.48,
leaving
a
“Church
Bursary”
of
$1,234,795.05.
The
net
profit
for
the
year
was
established
at
$107,697.74.
In
view
of
the
foregoing,
I
have
reached
the
conclusion
that
the
appellants
were
farmers
in
the
full
sense
of
the
word.
“Farming”
is
defined
as
follows
in
paragraph
139(1)(p)
of
the
Act:
139.
(1)
In
this
Act,
(p)
“farming”
includes
tillage
of
the
soil,
livestock
raising
or
exhibiting,
maintaining
of
horses
for
racing,
raising
of
poultry,
fur
farming,
dairy
farming,
fruit
growing
and
the
keeping
of
bees,
but
does
not
include
an
office
or
employment
under
a
person
engaged
in
the
business
of
farming;
It
is
manifest
from
the
financial
statements
produced
as
exhibits
that
all
the
colonies
were
engaged
in
poultry
raising
and
eggs,
garden
products,
hogs,
cattle,
horses,
cream,
geese,
ducks
and
feathers,
lamb
and
wool,
grain,
etc.
With
the
decision
of
the
Supreme
Court
of
Canada
in
Benjamin
Hofer,
John
Hofer,
Joseph
Hofer
and
David
Hofer
v
Zacharias
Hofer,
Jacob
Hofer
and
Jacob
S
Hofer,
Trustees
and
Representatives
of
the
Interlake
Colony
of
Hutterian
Brethren,
[1970]
SCR
958,
I
cannot
arrive
at
any
other
conclusion
than
that
the
appellants,
as
members
of
colonies
of
the
Hutterian
Brethren
Church,
are
not
excluded
by
the
creeds
and
faith
from
being
farmers,
holding
in
common
large
farms
from
which
they
draw
profits,
gains
and
benefits,
to
live
in
peace
and
security.
In
the
decision
of
the
Supreme
Court
in
the
above
case,
Pigeon,
J
said
at
pages
981
and
982:
If
the
evidence
respecting
the
operations
of
the
Colony
is
considered
on
the
basis
that
the
legal
nature
of
that
association
is
to
be
determined
by
reference
to
generally
accepted
principles
and
not
by
reference
to
the
tenets
of
the
Hutterians,
it
becomes
evident
that
it
is
a
commercial
under
taking,
not
a
Church.
The
land
is
used
essentially
for
growing
crops
and
raising
livestock
and
while
some
part
of
the
production
is
consumed
by
the
members
of
the
Colony
and
their
families,
the
major
part
is
sold
in
the
Same
manner
as
the
product
of
any
similar
undertaking
whether
owned
by
an
individual,
a
joint
stock
company
or
a
co-operative
association.
Of
course,
some
small
part
of
the
land
is
used
for
a
place
of
worship
but
it
is
clear
that
looking
at
the
matter
according
to
ordinary
principles,
this
is
only
an
extremely
minor
part.
For
legal
purposes,
it
can
no
more
be
controlling
than
the
use
of
two
small
rooms:
one
for
the
chaplain’s
office,
the
other
for
board
meetings,
in
a
large
building
otherwise
occupied
for
commercial
purposes
could
be
considered
as
putting
a
property
in
the
class
of
“properties
occupied
by
a
youth
association”
in
U
Association
catholique
de
la
Jeunesse
canadienne-française
v
la
Cité
de
Chicoutimi,
({1940]
SCR
510).
It
must
also
be
noted
that
if
the
Articles
of
Association
rather
than
the
teachings
and
theories
of
the
Hutterian
Church
are
examined,
it
becomes
apparent
that
two
distinct
purposes
are
enumerated
in
art.
2:
religion
and
industry,
the
industrial
purpose
being
described
in
the
following
way:
to
engage
in
and
carry
on
farming,
stock-raising,
milling,
and
al!
branches
of
these
industries,
and
to
manufacture
and
deal
in
such
products
and
byproducts
as
may
be
considered
by
the
Directors
to
be
in
the
best
interest
of
the
Colony.
It
is
therefore
contrary
to
the
Articles
of
Association
to
say
that
the
Colony
was
set
up
as
a
Church.
The
Articles
of
Association
as
well
as
the
facts
properly
considered
show
that
the
Colony
was
set
up
both
for
a
religious
purpose
and
the
object
of
operating
a
communal
farm.
In
respect
of
the
agricultural
operations,
the
Colony
cannot
be
considered
otherwise
than
as
a
secular
undertaking,
it
is
not
a
charitable
undertaking.
Because
it
has
among
its
purposes
an
object
that
cannot
be
classified
as
charitable,
it
follows
that
it
must
in
law
be
treated
as
a
commercial
undertaking.
I
have
nothing
against
the
way
of
living
of
the
Brethren
or
with
respect
to
their
religious
beliefs.
On
the
contrary,
I
consider
them
to
be
an
asset
for
the
country’s
agriculture
at
a
time
when
so
many
individual
farmers
are
deserting
the
tillable
lands
for
the
streets
of
the
cities
where
life
is
far
from
being
peaceful,
where
jobs
are
few,
where
crime
is
on
the
rampage.
i
adopt
as
mine
the
following
comment
of
John
W
Bennett,
in
his
essay
Hutterian
Brethren
—
The
Agricultural
Economy
and
Social
Organization
of
a
Communal
People:
In
contrast
to
the
Ukrainian,
the
Hutterian
way
of
life
constitutes
an
almost
ideal
blueprint
for
success
in
this
region.
The
purchase
of
large
amounts
of
property,
including
both
grassland
and
land
suitable
for
crops,
and
the
willingness
to
practice
almost
every
available
form
of
agriculture,
have
served
to
protect
the
Brethren
against
such
hazards
as
economic
fluctuation
and
drought.
Operating
costs
have
always
been
kept
to
a
minimum
by
the
colony’s
ability
to
concentrate
a
large
labor
force
on
essential
tasks.
The
Brethren
buy
machinery
in
sufficient
quantities
to
permit
large
savings,
and
keep
it
constantly
in
repair
in
their
well-equipped
shops.
Many
farm
and
home
necessities
are
manufactured
by
the
men
of
the
colony,
and
most
food
items
are
produced,
not
bought.
The
practice
of
voluntary
austerity
in
personal
consumption
is
a
basic
means
of
effecting
savings.
This
having
been
said,
I
accept
the
view
of
the
Hutterian
Brethren
Church
that
if
a
human
being
owes
his
life
spiritually
to
God,
materially
he
owes
his
wisdom,
his
activity,
his
work,
his
revenue,
not
only
to
himself
or
to
a
group,
but
to
the
Canadian
society
as
a
whole.
The
income
tax
is
one
way
and
maybe
the
best
way
to
partake
of
the
wealth
of
each
for
the
good
of
all.
The
learned
counsel
for
the
respondent,
Mr
Ainsley,
cited
the
following
cases:
MNR
v
Dworkin
Furs
(Pembroke)
Limited
et
al,
[1967]
SCR
223;
[1967]
CTC
50;
Eugene
Lagacé
and
Georges
Lagacé
v
MNR,
[1968]
2
Ex
CR
98;
[1968]
CTC
98;
Frank
Sura
v
MNR,
[1962]
SCR
65;
[1962]
CTC
1;
Barickman
Hutterian
Mutual
Corporation
v
Samuel
A
Nault
et
al,
[1939]
SCR
223;
Commissioners
of
Inland
Revenue
v
City
of
Glasgow
Police
Athletic
Association,
[1953]
AC
380;
Brighton
College
v
Marriott,
40
TLR
763;
Ashbury
Railway
Carriage
and
Iron
Company
(Limited)
v
Riche
(1875),
LR
7
HL
653;
Keren
Kayemeth
Le
Jisroel,
Ltd
v
Commissioners
of
Inland
Revenue,
47
TLR
298.
For
the
above
reasons,
the
appeals
are
dismissed.
W
O
Davis:—I
concur
in
the
result.
A
J
Frost:—I
concur
in
the
result.
Appeals
dismissed.
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