Summary

Keywords

Legislation - Interpretation, Conflicting legislation, Taxation legislation - Legislation — Interpretation — Conflicting legislation — Taxation legislation — How should courts resolve a conflict between two statutory provisions, one of which relies on a regulation?.

Summary

Case summaries are prepared by the Office of the Registrar of the Supreme Court of Canada (Law Branch). Please note that summaries are not provided to the Judges of the Court. They are placed on the Court file and website for information purposes only.

Taxpayers received distributions of shares from a corporation’s employee trust and, in calculating income tax payable, they applied rules applicable to a prescribed trust. The Minister of National Revenue reassessed the taxpayers and applied rules applicable to employee benefit plans. The Minister deleted reported taxable capital gains and included in each taxpayer’s income an amount equal to the fair market value of the shares. The taxpayers filed unsuccessful notices of objection and their appeals to the Tax Court of Canada and the Federal Court of Appeal were dismissed.