TITLE:

The Federal Income Tax Act and Private Law in Canada: Complementarity, Dissociation, and Canadian Bijuralism

AUTHOR(S): 

Duff, David G.

EDITOR:

This research report inspired an article that was published in:

• Duff, David G., “The Federal Income Tax Act and Private Law in Canada:  Complementarity, Dissociation and Canadian Bijuralism”, Canadian Tax Journal, Canadian Tax Foundation, Toronto, 2003, Vol. 51, No. 1, pp. 1-63 .

PAGE(S):

SERIE(S):

Canadian Tax Journal – Special Edition on Canadian Bijuralism and Harmonization

SUBJECT(S):

Canadian Bijuralism
Tax law

ABSTRACT:

The abstract is taken, in part, from the one found in the Canadian Tax Journal, 2003, Vol. 51, No. 1.

This paper examines the relationship between the I.T.A. and provincial private law, evaluating judicial decisions and statutory provisions in light of the goals of Canadian bijuralism, expressed in the Policy on Legislative Bijuralism adopted by the Department of Justice in June 1995, the Preamble to the first Federal Law – Civil Law Harmonization Act, and recent amendments to the federal Interpretation Act. The first part of the paper reviews cases in which Canadian courts have recognized a relationship of complementarity between the I.T.A. and provincial private law, relying on the latter to determine the application of the former. The second part of the paper examines cases in which Canadian courts have dissociated the I.T.A. from provincial private law, assessing tax consequences with little or no regard to the private law of the applicable province. The final part of the paper evaluates these decisions and relevant statutory provisions by reference to the goals of Canadian Bijuralism, and recommends specific statutory amendments to better realize these goals.