Simon v. Minister of National Revenue, (1975) 9 N.R. 61 (FCA)

• Judge: Jackett, C.J., Pratte, J.
• Court: Federal Court of Appeal (Canada)
• Case Date: January 31, 1975
• Jurisdiction: Canada (Federal)
• Citations: (1975), 9 N.R. 61 (FCA)

Simon v. MNR (1975), 9 N.R. 61 (FCA)

MLB headnote and full text

Simon v. Minister of National Revenue

Indexed As: Simon v. Minister of National Revenue

Federal Court of Appeal

Jackett, C.J., Pratte, J.

and Hyde, D.J.

February 24, 1975.

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 his 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 pursuant to s. 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. The Federal Court of Appeal stated that the husband from the moment of his marriage had no rights in respect of the "community property" after his death, if his wife survived him.

Estate and Inheritance Taxes - Topic 2151

Taxable property - Property passing on death - "Community property" of marriage, 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 Federal Court of Appeal held that the interest passing on the death of the husband was nil - The Federal Court of Appeal stated that the husband from the moment of his marriage had no rights in respect of the "community property" after his death, if his wife survived him.

Words and Phrases

Property passing on death - The Federal Court of Appeal discussed the meaning of the phrase "property passing on death" as found in s. 3 of the Estate Tax Act.

Cases Noticed:

Beament v. Minister of National Revenue, [1970] S.C.R. 680, folld. [para. 16; fn. 1].

Minister of National Revenue v. National Trust, [1949] S.C.R. 127, refd to. [see appendix].

Royal Trust Company et al. v. Minister of National Revenue, [1968] S.C.R. 505, folld. [para. 26].

Sura v. Minister of National Revenue, [1962] S.C.R. 65, folld. [para. 32; fn. 2].

Earl Cowley v. Inland Revenue Commissioners, [1899] A.C. 198, refd to. [para. 37].

Pesant v. Robin, 58 S.C.R. 96, folld. [fn. 2]; refd to. [fn. 5].

Statutes Noticed:

Quebec Civil Code, art. 1406 [para. 10].

Estate Tax Act, S.C. 1958, c. 29, sect. 2, sect. 3 [para. 6].

Counsel:

A. Garon and R. Roy, for the Minister of National Revenue;

J.L. Toupin, for Dame Lucie Simon et le Trust General du Canada.

This appeal was heard by the Federal Court of Appeal at Montreal, Quebec on January 31, 1975. Judgment was delivered by the Federal Court of Appeal on February 24, 1975 and the following opinions were filed:

JACKETT, C.J. - see paragraphs 1 to 16.

PRATTE, J. - see paragraphs 17 to 29.

HYDE, D.J. - see paragraphs 30 to 47.