The
Chairman
(orally:
June
19,
1975):—This
is
an
appeal
by
Irene
M
Cumming
against
a
reassessment
by
the
Minister
of
National
Revenue
for
the
1973
taxation
year.
The
point
at
issue
is
the
sum
of
$560
which
was
paid
to
the
estate
of
the
appellant’s
late
husband
pursuant
to
the
Canada
Pension
Plan
as
a
death
benefit.
The
question
is
whether
or
not
it
falls
within
the
meaning
of
a
death
benefit
in
the
wording
of
the
Income
Tax
Act.
The
two
statutes,
although
passed
by
the
same
legislative
authority,
are
different
in
their
application,
because
one
is
an
Act
providing
for
the
giving
of
benefits
and
the
other
is
an
Act
providing
for
the
extraction
of
rightful
sums
from
taxpayers
for
the
operation
of
the
country.
However,
one
cannot
just
ignore
the
purpose
for
which
the
appropriate
provision
of
the
Canada
Pension
Plan
was
passed
and
it
was,
clearly,
to
provide
a
benefit
to
a
widow,
as
in
this
case.
To
interpret
the
Income
Tax
Act
in
a
very
narrow
way,
so
as
to
make
the
reading
of
the
two
Acts
result
in
an
absurdity,
would
not,
in
my
view,
be
interpreting
the
Acts
in
the
manner
or
spirit
in
which
they
were
both
conceived.
I
cannot
come
to
any
other
conclusion
in
my
mind
but
that
the
government
did
not
intend
to
give
with
one
hand
and
take
with
the
other.
A
death
benefit
under
the
Canada
Pension
Plan
can
be
construed
by
giving
the
phrase
a
liberal
interpretation
in
section
56
or
subsection
248(1)
of
the
Income
Tax
Act
and,
in
my
view,
that
liberal
interpretation
should
be
the
one
to
be
applied
in
such
cases
as
this.
I
therefore
do
find
it
to
be
a
death
benefit
within
the
meaning
of
the
Income
Tax
Act
as
well
as
under
the
Canada
Pension
Plan
and
the
taxpayer’s
appeal
should
be
allowed.
Appeal
is
allowed.
Appeal
allowed.
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