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The trust deed is a document of some 19 pages, but only Article VIII thereof shall be reproduced: ARTICLE VIII: PAYMENT OF INCOME AND CAPITAL The Trustee shall invest and keep invested the Trust Estate until the first day of December, 1991 (hereinafter referred to as the “distribution date”) and may, from time to time, pay none, some or all of the net income derived therefrom or none, some or all of the capital thereof to or for the benefit of one, some or all of the children of the Settlor as the Trustee shall, in his absolute and uncontrolled discretion, determine; any income not so paid or applied in any calendar year to be added to form part of the Trust Estate; on the distribution date the Trust Estate shall be divided into as many equal shares as there shall be children of the Settlor then alive; and any child of the Settlor who shall not be then alive, but who shall have children him or her surviving, shall be considered alive for the purposes of such distribution; the Trustee shall keep the share from each such child invested and shall pay income and capital to such child upon such terms and in such manner as hereinbefore provided until such child shall attain the age of twenty-five (25) years, whereupon A of his or her share shall be paid to him or her for his or her own use absolutely; the remainder of such share shall be kept invested as aforesaid and the income and capital shall be paid as aforesaid until such child shall attain the age of 30 years whereupon the amount of such share remaining shall be paid to him or her for his or her own use absolutely; provided, however, that in the event that any such child shall die prior to the distribution date or, surviving the distribution date shall die prior to attaining the age of 25 years or, having attained the age of 25 years, shall die prior to attaining the age of 30 yars, leaving children him or her surviving, then the interest of such child in his or her share shall be subject to the defeasance and the share of such child or the amount thereof remaining shall be held in trust for the children of such deceased child alive at the date of such deceased child’s death in equal shares per stirpes, upon such terms and in such manner as herein provided; in the further event that such deceased child shall die in such manner as aforesaid, leaving no children him or her surviving, then the share of such deceased child or the amount thereof remaining shall be subject to defeasance and shall be held in trust for the brothers and sisters of such deceased child alive at the date of the death of such deceased child in such manner as herein provided; in the further event that there shall be no children of the Settlor alive at the distribution date or all of them shall die prior to attaining the age of 25 years or, if one of them shall have attained the age of 25 years but shall die prior to attaining the age of 30 years leaving no children them Surviving, to pay over the Trust Estate to or for the benefit of MERIDA PHYLLIS SACHS for her own use absolutely. ...

The situation here, as I see it, is analogous to that considered by Jackett, P, (as he then was) in Associated Investors of Canada Limited v MNR, [1967] CTC 138; 67 DTC 5096. ...

Evidence Both the appellant and the respondent adduced evidence but the only additional point considered significant by the Board was that some of the payments involved had been made to incorporated businesses providing the serivce to the appellant, and some of the payments had been made to unincorporated businesses, such as partnerships, etc. ...

In light of that, the section should be considered as saying on the facts of this case: For the purpose of computing the taxable income for the 1976 taxation year of the appellant, there may be deducted from his income for that year, the amount by which (a) the amount his spouse may claim as a deduction under section 110.1 exceeds (b) the amount, if any, by which his spouse’s income for 1976 exceeds the amount allowable as a deduction under paragraph 109(1)(c). ...

Act, Case Law and Comments 4.1 The main sections to be considered in the case at Bar are 2, 3, 5, 115 and 250(1)(d) of the new Act. ...

As the appellant pointed out, if we interpret the word “assumed” to mean “deemed”, which latter word according to many decisions of the Tax Review Board means “conclusively considered”, then several words of the subsection are redundant. ...

Another point to be considered is that if the decree had not provided specifically that the taxes payable by the wife would be reimbursed by the appellant, his wife would nonetheless have had to pay them out of the sum of $1,800 received monthly. ...

This was not a test case or lead case, and this factor should not be considered. ...

Mr Doyle has been considered a non-resident of Canada for taxation purposes since 1955 and he has been a permanent resident of the Republic of Panama since 1972. ...

Furthermore, as stated in the case cited and following a careful examination of subsections 110(1) and (5), once a non-resident has chosen to pay tax under subsection 110(1), he is considered to be a Canadian resident. ...