Alworth v. Minister of Finance, (1977) 15 N.R. 405 (SCC)

• Judge: Laskin, C.J.C., Martland, Judson, Ritchie, Spence, Pigeon, Dickson and Beetz, JJ.
• Court: Supreme Court (Canada)
• Case Date: May 17, 1977
• Jurisdiction: Canada (Federal)
• Citations: (1977), 15 N.R. 405 (SCC);1977 CanLII 160 (SCC);[1977] 4 WWR 268;15 NR 405;[1978] 1 SCR 447;76 DLR (3d) 99

Alworth v. Min. of Finance (1977), 15 N.R. 405 (SCC)

MLB headnote and full text

Alworth v. Minister of Finance

Indexed As: Alworth v. Minister of Finance

Supreme Court of Canada

Laskin, C.J.C., Martland, Judson, Ritchie, Spence, Pigeon, Dickson and Beetz, JJ.

May 17, 1977.

Summary:

This case arose out of the assessment of tax on income from logging operations against the taxpayers under the Logging Tax Act, R.S.B.C. 1960, c. 255, s. 3. The taxpayers appealed on the grounds that they were not liable to tax as nonresidents or as "bare" trustees. The British Columbia Court of Appeal dismissed the appeal. The taxpayers appealed.

The Supreme Court of Canada dismissed the appeals and held that the taxpayers were liable to the tax.

Constitutional Law - Topic 6826

Enumeration in s. 92 of British North America Act - Direct taxation within the Province - British North America Act, s. 92(2) - Meaning of "within the province" - The Logging Tax Act, R.S.B.C. 1960, c. 225, s. 3, imposed a tax on income earned from logging operations in British Columbia - The taxpayers argued that, since they were not residents of British Columbia, they were not liable to tax under the Act, because the Province was restricted to taxation "within the province" under s. 92(2) of the British North America Act - The Supreme Court of Canada held that the taxpayers were liable to pay tax on income earned from logging operations in British Columbia - The Supreme Court of Canada stated that the tax was imposed with regard to certain operations within the Province and it was the operations, not the taxpayers which carried the burden of the tax - See paragraphs 1 to 7.

Income Tax - Topic 204

Persons liable - Trustees - The Logging tax act, R.S.B.C. 1960, c. 255, s. 3, imposed a tax on income from logging operations - The taxpayers argued that, since they were "bare" trustees, they were not liable to tax, notwithstanding that they owned logging properties and received income from them - One of the taxpayers argued that it was "bare" trustee, because the trust was terminated, and another because its power came through an executor who had been discharged - The Supreme Court of Canada held that the taxpayers were liable, because the Act applied to trustees and because they owned and received income from logging land - See paragraphs 8 to 16.

Cases Noticed:

Kerr v. Superintendent of Income Tax, [1942] S.C.R. 435, consd. [para. 4].

International Harvester Co. v. Provincial Tax Commission, [1949] A.C. 36, refd to. [para. 4].

Provincial Treasurer of Alberta v. Kerr, [1933] A.C. 710, dist. [para. 5].

Statutes Noticed:

British North America Act, (1867), sect. 92(2) [para. 1].

Logging Tax Act, R.S.B.C. 1960, c. 255, sect. 3 [para. 2]; sect. 7, sect. 16, sect. 17 [para. 11].

Counsel:

A.B. Ferris, Q.C. and P.J. Furlong, for the respondent;

Hugh L. Henderson, Laurence R. Fast and Scott M. Johnston, for the respondent;

William Henkel, Q.C., for the intervenant Attorney General of Alberta.

This case was heard on March 28 and 29, 1977, at Ottawa, Ontario, before LASKIN, C.J.C., MARTLAND, JUDSON, RITCHIE, SPENCE, PIGEON, DICKSON and BEETZ, JJ., of the Supreme Court of Canada.

On May 17, 1977, LASKIN, C.J.C., delivered the following judgment of the Supreme Court of Canada: