When the taxpayer’s husband died, she rightfully expected that her family income for the relevant pre-death period for purposes of computing her Canada child benefit (CCB) would pursuant of s. 122.62(5)(b) not include her husband’s income under the Ontario Disability Support Program (the ODSP payments). Unfortunately, s. 56(1)(u)(ii) deemed the ODSP payments to be the income of the higher-income spouse (herself) – so that on a literal reading of the combined effect of s. 122.62(5)(b) and s. 56(1)(u)(ii), her family income included not only her actual income but also the income attributed to her under s. 56(1)(u)(ii).
Before allowing the taxpayer’s appeal, Russell J found that the Explanatory Notes suggested that this result was unintended and quoted from Villa Ste-Rose in stating (at para. 34):
Analogously [to that case], in the present case there is “a literal interpretation which may produce illogical or absurd results [and so] must be set aside”.