The City of Ottawa v. Egan, [1923] S.C.R. 304 (1923)

Supreme Court of Canada

The City of Ottawa v. Egan, [1923] S.C.R. 304

Date: 1923-02-06

The City of Ottawa (Plaintiff) Appellant;

and

Sir Henry K. Egan (Defendant) Respondent.

(Four Appeals)

1922: November 7, 8; 1923: February 6.

Present: Sir Louis Davies C.J. and Idington, Duff, Anglin, Brodeur and Mignault JJ.

ON APPEAL FROM THE APPELLATE DIVISION OF THE SUPREME COURT OF ONTARIO.

Assessment and taxes-Assessment on income-Industrial company-Distribution of funds-Assessment for current year-Consideration of previous year's income-Assessment Act, R.S.O. [1914] c. 195, s. 11 (2).

Section 11 of the Ontario Assessment Act provides for taxes on income and by subsection 2 "where such income is not a salary or other fixed amount capable of being estimated for the current year the income of such person for the purposes of assessment shall be taken to be not less than the amount of his income during the year ending on the 31st day of December then last past." In 1921 the shareholders of an industrial company were assessed in respect of moneys received from the company in 1920. On appeal it was established that no similar amounts were paid them in 1921 and the Appellate Division deducted said amount from the assessable income for that year.

Held, that the income to be taxed is that of the current year; that the income of the preceding year is only a basis from which to estimate the former when subsection 2 applies; and that the income to be assessed for 1921 was properly reduced.

APPEAL from a decision of the Appellate Division of the Supreme Court of Ontario reversing the judgment of the Ontario Railway and Muni...

If you are already a vLex customer, Access Here