Simon v. Minister of National Revenue, (1977) 15 N.R. 589 (SCC)

• Judge: Laskin, C.J.C., Judson, Pigeon, Beetz and de Grandpré, JJ.
• Court: Supreme Court (Canada)
• Case Date: February 08, 1977
• Jurisdiction: Canada (Federal)
• Citations: (1977), 15 N.R. 589 (SCC);1977 CanLII 155 (SCC);[1977] SCJ No 47 (QL);[1978] 1 SCR 264

Simon v. MNR (1977), 15 N.R. 589 (SCC)

MLB headnote and full text

Simon v. Minister of National Revenue

Indexed As: Simon v. Minister of National Revenue

Supreme Court of Canada

Laskin, C.J.C., Judson, Pigeon, Beetz and de Grandpré, JJ.

March 8 and June 21, 1977.

Summary:

This case arose out of the calculation of the aggregate net value of property passing on the death of a husband for purposes of the Estate Tax Act. The husband and wife married in a jurisdiction with a "community property" law similar to the provisions of the Quebec Civil Code. The husband, by virtue of a marriage contract, agreed that all "community property" would vest in his wife upon his death. In the absence of the marriage contract the "community property" would have been divided equally between the spouses on the death of either spouse. The surviving wife alleged that the "community property" did not constitute property passing on the death of her husband for purposes of attracting taxation under the Estate Tax Act. The Tax Review Board allowed the wife's appeal and declared that the "community property" that existed immediately prior to the death of the husband was not property passing to the wife within the meaning of section 3 of the Estate Tax Act.

On appeal to the Trial Division of the Federal Court of Canada the appeal was dismissed and the decision of the Tax Review Board was affirmed.

On appeal to the Federal Court of Appeal the appeal was dismissed and the judgment of the Trial Division was affirmed - see 9 N.R. 61.

On appeal to the Supreme Court of Canada the appeal was dismissed and the judgment of the Federal Court of Appeal was affirmed. The Supreme Court of Canada stated that on the death of the husband the widow became the owner of all the "community property", retroactively to the date of the marriage - see paragraphs 5 and 12.

Estate and Inheritance Taxes - Topic 2151

Taxable property - Property passing on death - "Community property" of marriage, effect of death of a spouse - Estate Tax Act, s. 3 - A husband, by a marriage contract agreed that all "community property" of the marriage would vest in his wife upon his death - Whether one-half of the "community property" passed on the death of the husband to the wife for purposes of the Estate Tax Act - The Supreme Court of Canada held that the interest passing of the death of the husband was nil - The Supreme Court of Canada stated that on the death of the husband the widow became the owner of all the "community property" retroactively to the date of the marriage - See paragraphs 5 and 12.

Words and Phrases

Property passing on death - The Supreme Court of Canada discussed the meaning of the phrase "property passing on death" as found in section 3 of the Estate Tax Act.

Cases Noticed:

Sura v. Minister of National Revenue, [1962] S.C.R. 65, folld. [paras. 5, 12].

Royal Trust Company et al. v. Minister of National Revenue, [1968] S.C.R. 505, folld. [paras. 6, 13].

Statutes Noticed:

Estate Tax Act, S.C. 1958, c. 29, sect. 3(1), sect. 58(1) [paras. 6, 13].

Quebec Civil Code, art. 1292 [paras. 6, 13.]

Authors and Works Noticed:

Mignault, Droit Civil, p. 337 [paras. 5, 12].

Troplong, Le Droit Civil Expliqué, 2d Ed., Du Contract de Marriage, Vol. 3, p. 679 [paras. 5, 12].

Counsel:

Alban Garon, Q.C. and Roger Roy, for the appellant;

J. Lambert Toupin, Q.C. and Michel Messier, for the respondents.

This appeal was heard by LASKIN, C.J.C., JUDSON, PIGEON, BEETZ and de GRANDPRE, JJ. at Ottawa, Ontario on February 8, 1977. The judgment of the Supreme Court of Canada was delivered by de GRANDPRE, J. The English language judgment of de GRANDPRE, J. was delivered on June 21, 1977 - See paragraphs 1 to 7. The French language judgment of de GRANDPRE, J. was delivered on March 8, 1977 - See paragraphs 8 to 14.