Hutterian Brethren Church of Wilson v. Minister of National Revenue, (1979) 31 N.R. 426 (FCA)

• Judge: Pratte, Heald and Ryan, JJ.
• Court: Federal Court of Appeal (Canada)
• Case Date: December 03, 1979
• Jurisdiction: Canada (Federal)
• Citations: (1979), 31 N.R. 426 (FCA)

Hutterian Brethren v. MNR (1979), 31 N.R. 426 (FCA)

MLB headnote and full text

Hutterian Brethren Church of Wilson v. Minister of National Revenue

(No. A-3-79)

Indexed As: Hutterian Brethren Church of Wilson v. Minister of National Revenue

Federal Court of Appeal

Pratte, Heald and Ryan, JJ.

December 3, 1979.

Summary:

This headnote contains no summary.

Income Tax - Topic 7533

Exemptions - Charitable organizations - Income Tax Act, s. 149(1)(f) - The Federal Court of Appeal held that the Hutterian Brethren Church of Wilson was not a charitable organization for purposes of s. 149(1)(f) of the Income Tax Act because the main activity of the church was commercial farming - The Court of Appeal stated that a commercial activity does not become a charitable activity because the activity is carried on by a charitable person for a charitable purpose (see paragraph 3).

Income Tax - Topic 3046

Computation of income - Inadequate considerations - Acquisition of property - Members of the Hutterian Brethren Church of Wilson agreed to provide personal services to the church in return for the support and education of the members and their families - The Federal Court of Appeal held that the provision of such services to the church did not constitute the acquisition of property by the church for purposes of s. 69(1)(c) of the Income Tax Act (see paragraph 4).

Cases Noticed:

Hofer et al. v. Hofer et al., [1970] S.C.R. 958, refd to. [paras. 3 and 19].

Wipf v. The Queen, 54 D.L.R.(3d) 118; 7 N.R. 72, refd to. [para. 9].

Statutes Noticed:

Income Tax Act, S.C. 1970-71-72, c. 63, sect. 69(1)(c) [para. 4]; sect. 149(1)(f) [see footnote 1].

Counsel:

J.A. Matheson, for the appellants;

P. Ketchum and B. Suanders, for the respondents.

This appeal was heard by PRATTE, HEALD and RYAN, JJ. of the Federal Court of Appeal at Edmonton, Alberta on November 6, 7 and 8, 1979.

The judgment of the Federal Court of Appeal was delivered at Ottawa, Ontario on December 3, 1979 and the following opinions were filed:

PRATTE, J. - see paragraphs 1 to 6.

HEALD, J. - see paragraphs 7 to 16.

RYAN, J. - see paragraphs 17 to 22.