ANGLIN,
C.J.C.:—In
our
opinion
this
appeal
must
be
allowed.
The
Income
War
Tax
Act
provides
expressly
for
the
taxation
of
accumulating
income
held
in
trust
for
the
benefit
of
unascertained
persons,
or
of
persons
having
contingent
interests.
The
income
is
made
"‘taxable
in
the
hands
of
the
trustees
or
other
like
persons
acting
in
a
fiduciary
capacity,
as
if
such
income
were
the
income
of
an
unmarried
person.’’
(Subsec.
6
of
sec.
3
of
the
Income
War
Tax
Act,
1917,
as
enacted
by
sec.
4
of
ec.
49
of
the
Statutes
of
1929;
see
also
sec.
10
of
the
Act
of
1920):
Whether
the
word
‘‘trust’’
means
a
person
or
body
holding
the
property,
or
distributing
the
trust
estate,
or
means
the
property
itself,
or
means
the
trust
upon
which
such
property
is
held,
is
quite
immaterial
in
view
of
what
is
said
above.
Those
who
are
at
the
present
time
probable
beneficiaries
of
the
trust,
or
some
of
them,
it
is
true,
reside
in
the
United
States.
sut
that
fact
does
not
prevent
this
case
coming
within
subsec.
6
of
sec.
3
above
referred
to,
nor
render
exempt
from
taxation
in
the
hands
of
trustees
income
accumulated
on
a
trust
for
unascertained
beneficiaries
or
beneficiaries
having
contingent
interests.
On
the
contrary,
in
our
opinion,
such
income
accumulating
in
trust
is
distinctly
a
subject
of
taxation
under
the
subsection
referred
to,
regardless
of
the
residence,
if
ascertainable,
of
probable
beneficiaries,
whose
interest
is
contingent
during
the
taxation
period.
This
view
accords
with,
that
which
‘prevailed
in
the
case
of
McLeod
v.
Minister
of
Customs
and
Excise
[1926]
S.C.R.
457,
C.T.C.
(1926).
It
may
be
that
the
decision
is
not
binding
upon
this
Court
because
there
the
judgment
below
was
affirmed
on
'an
even
division
of
opinion
amongst
the
judges
who
constituted
the
Supreme
Court.
(See
Stanstead
Election
ease,
Rider
v.
Snow
(1891)
20
S.C.R.
12).
It
is;
nevertheless,
entitled
to
great
respect.
We
are,
accordingly,
of
the
opinion
that
this
appeal
should
be
allowed
and
that
judgment
should
be
entered
for
the
appellant,
with
costs
here
and
in
the
Exchequer
Court,
upholding
the
income
tax
assessment
in
question.
Appeal
allowed.
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