In finding that, in the presence of a provision (s. 104(19)) - which deemed the taxpayer to have received a dividend some time in its taxation year which straddled the taxation year end of the trust that made the s. 104(19) designation (to deem a dividend received by it to have been received by the taxpayer , its beneficiary) but which did not specify the particular time within the taxpayer’s taxation year in which this deemed receipt occurred - that such dividend should be considered to have been received by the taxpayer at the time at which it actually was received by the trust, D’Arcy J stated (at para. 55):
Once it is determined that a deeming provision applies, one must then look at the actual wording of the deeming provision to determine what legal fiction is created. Specifically, one must determine to what extent the created legal fiction changes what, as a question of fact, actually occurred. In making this determination, one must remember that the scope of a deeming provision is limited to what is clearly expressed in the provision [citing Moules, at praras. 82-84)].