Minister of National Revenue v. Trans-Canada Investment Corporation Ltd., 55 DTC 1191, [1955] CTC 275, [1956] SCR 49 -- summary under Subsection 248(28)

By services, 28 November, 2015

In his dissenting reasons, Rand J., in finding that the intercorporate dividend deduction in s. 27(1) of the 1948 Act was not available to the taxpayer, stated (p. 1194):

"The deduction claimed is not permitted and it results in what may be called triple taxation. That is a consideration which inclines a court to a rigorous scrutiny of the enactment before it, but it does not permit an interpretation that supplies what Parliament must be taken to have deliberately omitted."

In concurring with the majority, Cartwright J indicated that he was inclined against "introducing the anomaly that the interposition of a trustee between a dividend-paying taxable corporation and the beneficial owner of its shares should leave unaffected in the case of an individual beneficial owner but destroy in the case of a corporate beneficial owner that protection against multiple taxation which it was the clear intention of Parliament to afford to all recipients of dividends from taxable corporations."

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double (or triple) taxation may be intended
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