INCOME TAX |
Income Calculation |
Iron Ore Co. of Canada v. Canada
A-62-00
2001 FCA 224, Létourneau J.A.
4/7/01
8 pp.
Appeal from Tax Court's decision Income Tax Act, s. 12(1)(x)(iv) applied, requiring appellant to include in 1994 income $950,000 refund for provincial sales tax paid in error--S. 12(1)(x)(iv) requiring inclusion in income for taxation year amounts received from government "as a refund, reimbursement, contribution or allowance or as assistance, whether as a grant, subsidy, forgivable loan, deduction from tax, allowance or any other form of assistance"--Appellant arguing only refund in nature or form of assistance to taxpayer required to be included in income under s. 12(1)(x)(iv)--Relying on noscitur a sociis (associated words) rule, to argue "refund" (like "reimbursement", "contribution", "allowance") qualified by requirement of government assistance to taxpayer because notions of "assistance", "any other form of assistance" appearing in provision as common feature applicable to all terms in subparagraph--Noscitur a sociis rule not applicable--(1) Use of "as" after "or" in "or as assistance" ending preceding enumeration of words, and therefore association of words--Introduces another category of amounts--No ambiguity in French either--With respect to second category, text identifies form assistance can take--(2) "Allowance", "indemnité" appearing twice in subparagraph: first time as amount akin to refund, reimbursement or contribution, and second time as form of assistance--Application of noscitur a sociis rule would render meaningless, redundant first use of words "allowance", "indemnité" since under rule allowance or indemnité would have to be in form of assistance and yet assistance in form of allowance or "indemnité" would already be covered by second use of word--(3) "Any other form of assistance" referring to amount received "as assistance" and broadens form of assistance enumerated--French text consistent with English text--(4) Notion of assistance used in other provisions of Act independently of concepts of refund or reimbursement--Thus Parliament identified three kinds of amounts under s. 12(1)(x)(iii) and (iv): those received as inducement; those received as refund, reimbursement, contribution or allowance; and those received as assistance, whether as grant, subsidy, forgivable loan, deduction from tax, allowance or any other form of assistance--Income Tax Act, R.S.C., 1985 (5th Supp.), c. 1, s. 12(1)(x)(iii) (as am. by S.C. 1998, c. 19, s. 2), (iv) (as am. idem).