Person

Table of Contents

Cases

Canada (National Revenue) v. Stanchfield, 2009 DTC 5710, 2009 FC 99

individual is a person
followed in Brown v. The Queen, 2014 FCA 301, at para. 14]

The taxpayer was unsuccessful in a submission that an s. 231.7 demand did not apply to him because he was not a "person" in his capacity of a natural person acting for his own private benefit.

R. v. Sargent, 2005 DTC 5288, 2004 ONCJ 356

individual is a person

A submission by the taxpayer that the Act only applies to corporations and not to natural persons, was rejected.

International Fruit Distributors Ltd. v. MNR, 53 DTC 1222 (Ex Ct), aff'd without reasons 55 DTC 1186 (SCC)

The taxpayer, which along with another Canadian corporation was controlled by a U.S. parent, was unsuccessful in a submission that it was related to the other Canadian corporation because the term "person" in s. 36(4)(b)(i) as it applied in 1949 would not extend to a corporation or, in any event, a foreign corporation. Thorson P. noted (at p. 1223) that the definition of "person" in the Act "clearly includes a corporation. Indeed, it includes 'any' corporation and there is no reason for holding that it does not extend to a foreign corporation ... ."

See Also

Estate of Winifred Straessle v. The Queen, 2018 TCC 144

person includes an heir of the person irrespective of also being a legal representative

The definition of a “person” indicates that such word “includes … the heirs, executors … or other legal representatives of such a person.” Lafleur J found that this definition indicated that the heir of an estate (i.e., the daughter receiving as the beneficiary of the estate of her mother), who had never been an executor or other legal representative of the estate, could object to and then appeal an assessment of the person and taxpayer in question, being the estate (which had since been wound up). She rejected the Crown’s argument that, in order to have this ability, the heir was required by the quoted wording to have been an heir who was also a legal representative, stating (at paras. 38, 44):

[T]he word “heir” found in the definition of “person”, the meaning of which is determined in accordance with the applicable private law, does not necessarily have the same meaning as the word “heir” found in the definition of “legal representative of a taxpayer” as defined under subsection 248(1): in order for an “heir” to be a “legal representative of a taxpayer” under that latter definition, the heir must administer, wind-up, control or deal in a representative or fiduciary capacity with the property of the Estate. …

Parliament cannot have intended that an assessment be immune to a judicial challenge.

Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 165 - Subsection 165(1) heir could appeal reassessment of wound-up estate 362

Quali-T-Tube ULC Inc. c. La Reine, 2005 TCC 373

The Court rejected a submission of the taxpayer (at para. 33) that "the word 'person' in this context [of the definition of "cost of labour" in Regulation 5202] cannot be interpreted so as to include a corporation because a corporation cannot perform management or administrative functions".

Seven Mile Dam Contractors v. The Queen in Right of British Columbia (1980), 116 DLR (3d) 398, 1980 CanLII 451 (BCCA)

A definition in the Interpretation Act (B.C.) of a person as including a partnership did not displace the general law of partnership that each partner has a property interest in the assets of the partnership.

Office Overload Co. Ltd. v. MNR, 65 DTC 690 (TAB)

The vendor "person" referred to in the statutory predecessor of s. 22 of the Act was interpreted as not including a non-resident who was not subject to any obligation to file a Canadian income tax return given (at p. 697) that:

"The section taken as a whole, which, in my opinion, is the way in which it must be interpreted, is intended to apply to persons who fall to be taxed or otherwise dealt with under the provisions of the Canadian Income Tax Act and who report to the Canadian Government the income arising from the operation of the business or businesses whose sale is the central concern of the said section ... ."

Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 22 - Subsection 22(1) not applicable where non-resident vendor 171

Administrative Policy

19 December 2012 Internal T.I. 2012-0472761I7 - Definition of person in respect to a province

An inquiry from the Newfoundland/Labrador TSO was generated when a provincial official questioned whether the federal government could, in the absence of an information exchange agreement, require information and/or documents from the provincial governement pursuant to s. 231.2. After citing MNR v Braithwaite, 70 DTC 6001 (Ex Ct), the Directorate stated:

a person would include Her Majesty in right of a province and a reference to Her Majesty in right of a province would be a reference to the provincial government including a ministry of that government. Accordingly, a province would be subject to section 231.2....

1 February 1999 T.I. 982371

"It is generally the Department's view that a foreign corporation is a 'person' for purposes of the Act unless the context clearly indicates otherwise." Accordingly, for purposes of applying the personal services business rules, a Canadian corporation was found to be associated with a U.S. corporation that it controlled.

26 August 1993, T.I. (Tax Window, No. 33, p. 2, ¶2637)

"Person" as used in Part II of the Regulations includes a non-resident person.

3 October 1991 T.I. (Tax Window, No. 10, p. 23, ¶24)

RC interprets the Oceanspan case as dealing only with the meaning of "taxpayer", not the meaning of "person".

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