CAMERON,
J.:—This
is
an
appeal
by
the
Minister
of
National
Revenue
from
a
decision
of
the
Income
Tax
Appeal
Board
dated
June
11,
1951
(4
Tax
A.B.C.
287,
footnote),
which
allowed
an
appeal
by
the
respondent
company
from
an
assessment
to
income
tax
made
upon
it
on
October
7,
1949,
in
respect
of
its
taxation
year
ending
December
31,
1947.
In
computing
its
taxable
income
for
that
year,
the
respondent
claimed
as
a
deduction
the
sum
of
$125,735.25,
paid
to
the
Minister
of
Hydraulic
Resources
for
the
Province
of
Quebec
under
the
provisions
of
‘‘An
Act
to
Insure
the
Progress
of
Education’’
enacted
by
the
Legislature
of
the
Province
of
Quebec,
10
George
VI,
ce.
21.
That
deduction
was
disallowed
by
the
Minister
on
the
ground
that
it
was
a
corporation
tax
as
defined
by
the
regulations
contained
in
P.C.
5948,
passed
under
the
authority
of
Section
6(1)
(o)
of
the
Income
War
Tax
Act,
and
therefore,
under
the
provisions
of
that
subsection,
was
not
deductible.
I
am
advised
that
in
this
case,
as
in
all
the
others,
the
full
amount
now
claimed
by
the
Minister
as
payable,
has
in
fact
been
paid,
no
doubt
under
protest.
Paragraph
(o)
as
made
applicable
to
the
year
1947
was
as
follows:
“6.
In
computing
the
amount
of
the
profits
or
gains
to
be
assessed,
a
deduction
shall
not
be
allowed
in
respect
of
(o)
any
corporation
tax,
as
defined
by
regulation
made
by
the
Governor
in
Council,
paid
to
the
Government
of
a
province
or
to
a
municipality.
’
’
An
appeal
to
the
Income
Tax
Appeal
Board
was
allowed,
the
Board
being
of
the
opinion
that
the
“Act
to
Insure
the
Progress
of
Education’’
did
not
impose
a
corporation
tax,
and
that
the
Governor
in
Council
in
enacting
P.C.
5948
exceeded
the
powers
conferred
to
him
by
paragraph
(o)
of
Section
6(1)
of
the
Income
War
Tax
Act,
and
that
it
was
therefore
ultra
vires.
The
Board
also
held
that
in
any
event
a
portion
of
the
deduction
claimed
was
within
the
express
provisions
of
certain
exceptions
contained
in
P.C.
5948,
as
being
rents
or
royalties
in
respect
of
natural
resources;
and
that
the
sums
so
disbursed
were
wholly,
exclusively
and
necessarily
laid
out
for
the
purpose
of
earning
the
income,
and
therefore
deductible
under
Section
6(1)
(a)
of
the
Act.
This
appeal
was
heard
at
the
same
time
as
eight
other
appeals
in
which
the
Minister
was
the
appellant
and
eight
other
power
corporations
of
the
Province
of
Quebec
the
respondents.
It
was
agreed
at
the
hearing
of
the
appeals
that
the
evidence
given
before
the
Income
Tax
Appeal
Board,
and
a
certain
admission
of
facts
supplementary
thereto
which
was
filed
with
the
consent
of
all
parties,
would
be
the
evidence
on
these
appeals,
subject
only
to
the
question
of
the
admissibility
of
certain
evidence
tendered
to
the
Board.
This
respondent,
like
all
other
respondents,
was
engaged
in
the
business
of
generation
of
electrical
power
from
water
powers.
The
respondent
was
the
owner
of
part
of
such
water
powers
in
fee
simple,
the
remainder
being
held
under
emphyteutic
leases
from
the
Province
of
Quebec.
The
issues
raised
in
this
appeal
were
the
same
as
in
the
others
except
that
counsel
for
the
MacLaren-Quebee
Power
Co.
and
the
Ottawa
Valley
Power
Co.
did
not
join
with
the
counsel
for
this
and
the
other
respondents
in
their
submission
that
paragraph
(o)
of
Section
6(1)
of
the
Income
War
Tax
Act
was
ultra
vires
the
Parliament
of
Canada.
Judgment
has
been
delivered
today
in
the
appeal
of
the
Minister
regarding
the
assessment
of
one
of
the
respondents—
The
Shawinigan
Water
and
Power
Co.
That
appeal
was
allowed,
the
decision
of
the
Income
Tax
Appeal
Board
was
set
aside
and
the
assessment
made
upon
that
company
was
restored.
For
the
reasons
given
in
that
case,
and
which
are
to
be
considered
as
forming
part
of
this
judgment,
the
appeal
herein
will
be
allowed,
the
decision
of
the
Income
Tax
Appeal
Board
set
aside,
and
the
assessment
made
upon
the
respondent
by
the
Minister
will
be
affirmed.
The
appellant
is
entitled
to
be
paid
its
costs
after
taxation.
Judgment
accordingly.
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