Scheme

"An interpretation which is on key with the statute as a whole is to be preferred. I agree with counsel in respect of this principle but I do not agree that my finding brings disharmony to the statute."

Since s. 20(1)(c) was thought to be almost a mirror image of s. 12(1)(e), case law as to the meaning of the latter was found to be relevant to the meaning of the former.

"If the [statutory] words are imprecise so as to give rise to the possibility of two constructions then they should be interpreted in the manner which will bring about the result which conforms to the apparent scheme of the legislation ... ." Here, the Parliamentary intent was that a policy reserve, which had been deducted from the previous year's income, should be included in income.

"While it may not always be easy to find harmony and consistency in the provisions of the Income Tax Act the Court must, as it seems to me, strive to give to particular provisions, even though broadly worded, an interpretation which will conform to and give consistency as far as possible to the apparent scheme of the Act." (Thurlow, C.J.)

In connection with finding that land upon which the timber had been removed should be regarded as part of a timber limit, in order to avoid the deduction by the taxpayer of depreciation in excess of the net cost to it of the land, Cartwright J. stated (p. 5120):

"The answer to the question what tax is payable in any given circumstances depends, of course, upon the words of the legislation imposing it. Where the meaning of those words is difficult to ascertain it may be of assistance to consider which of two constructions contended for brings about a result which conforms to the apparent scheme of the legislation."