Munich Reinsurance Co. v. The Queen, 2002 DTC 6701 (FCA)

Interest income earned by the taxpayer on tax overpayments was not income from an investment property given that there was no evidence that the taxpayer overpaid its tax instalments for the purpose of earning interest.

S.138(9) was determined to be a complete code for determining whether interest income earned by the taxpayer on an overpayment of taxes was income from its Canadian insurance business. Sharlow J.A. noted (at p. 6705) that:

"To require a non-resident insurer to look beyond subsection 138(9) to determine the tax character of its investment income would render the scheme of subsection 138(9) largely redundant with respect to the very question it is intended to address, or it would result in the Canadian allocation of the investment income being larger or smaller than the allocation dictated by subsection 138(9). There is no reason to believe that Parliament intended such a redundancy, or such inconsistency."