Taylor,
TCJ:—This
is
an
appeal
heard
in
Toronto,
Ontario
on
December
6,
1984,
against
an
income
tax
assessment
for
the
year
1979,
in
which
the
Minister
of
National
Revenue,
in
1981,
assessed
tax
and
interest
totalling
$1,176.36
against
the
estate.
The
essential
facts
of
the
matter
are
detailed
in
the
Minister’s
reply
to
notice
of
appeal:
—
Ruth
Couse
died
on
September
9,
1979
and
Ralph
S
Mills
was
the
executor
of
the
Estate
of
Ruth
Couse;
—
the
deceased
had
owned
an
annuity
contract
of
Great
West
Life
Assurance
Company,
purchased
in
part
from
the
proceeds
of
a
registered
retirement
savings
plan;
—
the
executor,
Ralph
S
Mills,
was
informed
by
Great
West
Life
by
letter
therefrom
dated
November
19,
1979
that
the
registered
portion
at
date
of
death
was
valued
at
$3,074.35,
which
registered
portion
was
“reportable”,
and
also
subject
to
possible
adjustment
upon
past
due
payments
and
any
interest
thereon
being
added;
—
A
T-l
return
for
1979
was
filed
for
the
Estate
of
Ruth
Couse
by
the
executor
on
or
about
March
10,
1980;
—
annuity
payments
from
Great
West
Life
were
reported
in
the
1979
return
in
the
amount
of
$283.44;
—
the
executor
informed
the
Toronto
District
Office
by
letter
dated
April
15,
1980
that
additional
interest
should
be
taken
into
account
in
assessing
the
filed
return;
—
the
executor
was
informed
by
telephone
by
a
representative
of
the
District
Office
that
the
additional
interest
had
been
reviewed
and
associated
with
the
return
and
no
adjustment
to
taxable
income
on
account
of
it
would
result;
—
an
assessment
notice
dated
April
21,
1980
was
issued;
—
a
notice
of
reassessment
dated
December
7,
1981
was
issued
showing
tax
assessed
of
$876.70,
adjustment
to
provincial
credit
of
$107.80,
and
interest
of
$182.86;
—
on
or
about
May
30,
1980
Great
West
Life
apparently
had
released
to
Mrs
Doyle
in
trust
for
David
Doyle
a
lump
sum
amount
representing
the
commuted
value
of
the
aforesaid
annuity
contract,
which
included
$4,856.03
on
account
of
the
registered
portion,
but
with
$443.36
on
account
thereof
withheld
for
federal
income
tax;
—
Great
West
Life
subsequently
released
the
$443.36
to
Mrs
Doyle
in
trust;
The
Minister
relied
inter
alia,
on
subsection
146(8)
and
subsection
146(8.8),
and
subsection
161(1)
of
the
Income
Tax
Act,
RSC
1952,
chapter
148,
as
amended.
Mr
Mills
testified
that
when
he
had
completed
and
signed
the
Great
West
Life
“Claimant’s
Statement’’
on
January
16,
1980,
directing
that
payments
should
be
made
to
Mrs
Judy
Doyle,
in
trust
for
David
Michael
Doyle,
he
was
satisfied
by
virtue
of
a
letter
from
Great
West
Life,
dated
November
19,
1979,
that
appropriate
income
tax
deductions
would
be
withheld.
It
would
appear
from
the
record
that
this
was
done,
but
when
a
refund
of
the
remittance
of
income
tax
deduction,
was
made
by
Revenue
Canada
(due
to
a
change
in
procedure)
the
amount
withheld
was
sent
on
to
Mrs
Doyle
by
Great
West
Life.
It
was
the
contention
of
Mr
Mills
that
he
(as
trustee)
was
relieved
of
the
obligation
against
the
estate
for
at
least
the
$443.36
noted
above,
because
the
estate’s
obligation
had
been
extinguished
when
the
remittance
was
offered;
and
that
he
should
not
be
liable
for
the
interest
charged
during
the
period
from
1979
to
1981
since
he
was
totally
unaware
any
funds
were
allegedly
owing.
I
am
certainly
sympathetic
to
the
dilemma
in
which
Mr
Mills
finds
himself,
and
I
can
understand
the
chagrin
he
feels
since
none
of
the
funds
at
issue
actually
passed
through
his
hands;
and
he
neither
has
any
of
the
estates
funds
under
his
control
now,
nor
does
he
know
of
the
whereabouts
of
Mrs
Doyle.
However,
the
facts
are
that,
as
executor,
(a)
he
was
responsible
for
including
in
the
final
1979
income
tax
return
of
the
deceased,
the
estimated
value
of
the
registered
retirement
savings
plan;
and
(b)
the
direction
he
gave
to
Great
West
(valid
above)
on
January
16,
1980
included
the
following
certificate:
I
hereby
declare
that
the
foregoing
answers
are
true
and
full;
that,
to
the
best
of
my
knowledge
and
belief,
I
have
withheld
no
material
facts
from
the
Company
and
that
the
foregoing
answers
and
statements
are
made
with
the
object
of
securing
payment
to
me
of
the
proceeds
of
the
above
policy
or
policies.
[Emphasis
mine]
The
payments
to
which
the
Minister
is
attaching
tax
represent
amounts
distributed
under
the
direction
of
Mr
Mills
to
a
beneficiary
of
the
estate
from
which
tax
was
exigible.
The
appeal
is
dismissed.
Appeal
dismissed.
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