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 PRINCIPLES............12
common law jurisdictions or in Quebec. These  principles  have been reviewed and confirmed 36
backdrop is the Civil Code of Québec and civil law  principles  of general application.142
coexistence of the courts of law and the courts of equity where equitable  principles  were 178
interpreting an enactment it is necessary to refer to a provinces rules,  principles  or concepts 486
 principles  and concepts in force in the province at the time the enactment is being applied.488
The  principles  that are found in this provision were the object of many judicial debates in the 496
tax policy  principles  of equity or of neutrality in taxation. That tax legislation must provide for an 624
Given the codification of the  principles  of equality of common law and civil law and of 628
 principles , rules and concepts should apply in interpreting federal tax legislation unless other 630
legal  principles  that must be taken into consideration in interpreting federal tax legislation. The 652
Bruce Ziff,  Principles  of Property Law, rd ed. (Scarborough, ON: Carswell, ), .750
and uniqueness of the concepts and  principles  of each legal system. The fact that provincial 982
 
 PRINTED...............1
always spoken in one form with respect to language. One official language version is not  printed  406
 
 PRIOR.................1
French civil law as it existed  prior  to with its subsequent alterations in Quebec in regard to 40
 
 PRIVATE...............73
The purpose of this article is to give a general overview of the Harmonization Program and its progress as of October . Before exploring some of the differences in the provincial  private  law and their potential impact on federal tax legislation, it would be useful to give background information on the duality of our legal system and on the particular interaction between federal law and provincial private law in Canada. Next we will give a broad overview of the most important differences between the common law tradition and the civil law tradition in order to illustrate the challenge at hand in applying federal tax legislation fairly and efficiently. Also we will briefly explain the Harmonization Program, its objectives and techniques, and report on the harmonization work done thus far.4
The purpose of this article is to give a general overview of the Harmonization Program and its progress as of October . Before exploring some of the differences in the provincial private law and their potential impact on federal tax legislation, it would be useful to give background information on the duality of our legal system and on the particular interaction between federal law and provincial  private  law in Canada. Next we will give a broad overview of the most important differences between the common law tradition and the civil law tradition in order to illustrate the challenge at hand in applying federal tax legislation fairly and efficiently. Also we will briefly explain the Harmonization Program, its objectives and techniques, and report on the harmonization work done thus far.4
This article is followed by four in depth articles studying problems in the application of the Income Tax Act arising from differences in provincial  private  law. For example, the 4
institution of trust and the concept of ownership vary considerably as between the common law provinces  private  law and Quebecs civil law regime. Moreover, even between common 6
law provincial jurisdictions, significant differences may arise as a result of variations in provincial statutes dealing with such matters as what might constitute a charitable activity in the province or who might be viewed as residing in the province. Such diversity in provincial  private  law is, as will be seen in the articles that follow, susceptible of producing significant differences in the application of federal legislation tax and other from one province to the other. 6
legislation must be compatible with the two legal systems of  private  law. 12
, which recognized that in matters of property and civil rights ( private  law), the civil law 16
Parliament may have jurisdiction over certain  private  law matters and may set out its own 24
 private  law rules, the bulk of Canadian private law is in provincial law. 26
private law rules, the bulk of Canadian  private  law is in provincial law. 26
The distinction between  private  law matters and public law matters is critical as bijuralism only 26
extends to  private  law matters. In federal tax legislation, concepts or rules that are borrowed 28
from provincial  private  law include such matters as the concepts of ownership, partnership, 28
liability or any other  private  law matter that involves the relations between persons. This means 30
belongs to public law as opposed to  private  law, such concept or rule should have the same 34
Fourthly, the federal  private  law in Quebec is composed of the private law defined in a 48
Fourthly, the federal private law in Quebec is composed of the  private  law defined in a 48
source in order to apply a federal statute. The Parliament of Canada may enact  private  law 50
source, the civil law, or it may enact  private  law legislation which, because it is incomplete, will 52
Having evolved differently one from the other, our two  private  law systems involve divergent, 58
differences that result from our different  private  law systems. How does the drafter of tax 64
relationships between federal and provincial  private  law. As such, federal legislation does not 122
often stand alone and depends on provincial  private  law for meaning. 124
Most of Canadas  private  law is provincial. Therefore, where federal legislation refers to 132
 private  law terms and concepts such as mortgage, property, trust and leases, without defining 134
such terms and concepts, they take the meaning that applies in the  private  law of the province in 134
complementarity. Provincial  private  law, in this relationship, can be viewed as the backdrop or 138
legal infrastructure of the federal legislation. Provincial  private  law provides the suppletive law 138
own  private  law rules and to derogate from the relationship of complementarity. This is done 144
provincial  private  law infrastructure than to reinvent it in every federal statute. Thus, even where 150
provincial  private  law rules and concepts. The interpretation of federal legislation requires an 152
awareness of the differences in our legal traditions and of the diversity in our provincial  private  154
The important differences that exist in our legal traditions and in the  private  law of the provinces 156
legislation and provincial  private  law. It should be emphasized that the harmonization of tax 316
civil law when they refer to provincial  private  law rules and concepts. This revision is similar in 324
provincial  private  law. 380
common law terminology? Would it be appropriate to create a lexicon of  private  law 402
federal tax legislation to the legal concepts and rules of Quebecs  private  law. 470
codifies the principle of complementarity of provincial  private  law. We emphasize that the 490
to all provincial  private  law, including general common law and provincial statutory law. In 492
to provincial  private  law terms used in federal legislation. 494
one argued for the recognition of the complementary nature of provincial  private  law in matters 502
A new debate ensued from this recognition: does provincial  private  law complete only federal 504
 private  legislation or does it apply in all cases regardless of the qualification of an act as private 506
private legislation or does it apply in all cases regardless of the qualification of an act as  private  506
o St-Hilaire:  Private  Law vs Public Law 508
provincial  private  law where the former is silent on the meaning of a concept.522
Justice Décary rejected the argument that provincial  private  law is to complete only federal 524
 private  legislation as opposed to public legislation: 524
What, in my view, should determine whether or not it is necessary to resort to the  private  526
law (in Quebec, the civil law) is not the public or  private  nature of the federal enactment at issue 526
and their civil rights are in dispute and have not been defined by Parliament, it is the  private  law 532
He concluded that the concept of succession is a  private  law concept and consequently that it 534
must be interpreted in light of the  private  law of the province in which the provision is to be 536
example of the danger in concluding that a federal statute is either public law or  private  law and 540
that once it is public law any reference to a  private  law concept must be interpreted in light of 540
 private  law concept such as succession without defining it, should be interpreted in Quebec in 544
 private  law rule, principle or concept. Then, one will have to determine whether the federal 548
legislation contains its own  private  law rule. If federal legislation is silent (as in the St-Hilaire 548
case) or relies upon provincial  private  law to complete it, then reference is to be made to 550
provincial  private  law. 550
complementarity of provincial  private  law with federal legislation, provincial private law 628
complementarity of provincial private law with federal legislation, provincial  private  law 628
It should be emphasized further that the requirement of compatibility with provincial  private  law 636
extends not only to Quebec civil law but also to the  private  law of the other provinces and 636
territories. If there are material differences in the provincial  private  law of common law 638
provincial  private  law will be that the tax treatment will differ depending on the province of 644
of provincial  private  law and the equality of the civil law and the common law are also important 652
legislator may always derogate from provincial  private  law and specifically set out its own rules, 654
where the application of provincial  private  law leads to differences in tax treatment. The issue is 654
provincial  private  law will complete it. 658
 private  law. These rules not only apply to the traditional interpreters like the courts but also to 660
coexistence of Canadas two  private  law systems: civil law and common law. The purpose of 974

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