The treatment of a single payment under different provisions of the Act as income in the hands of two taxpayers may result from an unfortunate arrangement of the taxpayer's affairs. Le Dain JA stated:
Where the payment is received by one but has the effect of conferring a benefit on the other then it involves two distinct transfers or receipts, each of which may be subject to taxation on a separate basis. It is not being taxed twice in the hands of the same person.