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It is agreed that a statement of the facts be prepared and approved by the parties hereto, and that written arguments on behalf of the plaintiff and defendant be prepared and submitted to the Judge of the First Division Court of the county of Peel. Dated this 4th day of November, A.D. 1912.” together with a request that the terms of the said consent be assented to, and enclosing an undertaking that the Consent would at once be forwarded to the clerk of the First Division Court of the county of Peel, and a statement of the facts of the case would be submitted to the said defendant corporation for approval before being submitted to the Judge of the said First Division Court of the county of Peel. 8. On or about the 20th day of November, 1913, a copy of the argument for the said plaintiff was submitted to the said defendant corporation for approval, a copy having previously been forwarded to the said Judge of the First Divi. sion Court of the county of Peel.
The defendant corporation, under and by virtue of the Ontario Assessment Act, R. S. O. (1897), ch. 224, as amended by the new Assessment Act, 4 Edw. VII. (1904), ch. 23, and amending Acts, imposed an income tax upon the income of the said plaintiff. It is contended, on behalf of the said defendant corporation, that “income * as designated under the interpretation clause, being sec. 2, sub-sec. 8, as follows: “8. ‘Income ' shall mean the annual profit or gain or gratuity (whether ascertained and capable of computation as being wages, salary or other fixed amount, or unascertained as being fees or emoluments, or as being profits from a trade or commercial or financial or other business or calling) directly or indirectly received by a person from any office or employment, or from any profession or calling, or from any trade, manufacture or business, as the case may be; and shall include the interest, dividends, or profits directly or indirectly received from money at interest upon any security or without security, or from stocks, or from any other investment, and also profit or gain from any other source whatever.” includes all sums of money receivable as income within the meaning and intention of the section, as ascertained or defined by reasonable and proper application of the rules provided for the construction of statutes, and such section must be accepted as the expressed intention of the Legislature, except in so far as specific exemptions of income are otherwise provided. Section 5 of the Act provides that all income derived in. any manner by any “person,” resident within or without the province, shall be liable to taxation, except as expressly exempted by the said sec. 5, and under the exemptions enumerated attention is referred to sub-secs. 13, 14 and 15, which alone, by specific designation, indicate persons, officials and officers intended to be exempted by this section. The section and sub-sections are as follows: “5 All real property in this province and all income derived either within or out of this province by any persons resident therein, or received in this province by or on behalf of any person resident out of the same shall be liable to taxation, subject to the following exemptions, that is to say:—
“13. The official income of the Governor-General of the Dominion of Canada, and the official income of the Lieutenant-Governor of this province.
14. The full or half-pay of any officer, non-commissioned officer or private of His Majesty’s regular Army or Navy; and any pension, salary, gratuity or stipend derived by any person from His Majesty's Imperial Treasury, and the income of any person in such Naval or Military services, on full pay, or otherwise in actual service,
15. The income of a farmer derived from his farm.”
The only further exemption of income provided by this section is found under sub-sec. 19, since repealed, and a new section substituted therefor, under 3 Geo. V., ch, 46, sec. 4, providing for a partial exemption from personal earnings assessable directly in respect of income under this Act to the amount of $1,500, where such person is resident in a city or town, or to the amount of $1,200, where such person is resident in any other municipality, if such person is a householder in the municipality and assessed as such, or, being the head of a family, occupies with his family any portion of a dwelling-house, although not assessed therefor; and the annual income derived from personal earnings or from any pension, gratuity or retiring allowance in respect of personal services, of any person not being such householder or head of a family, to the amount of $600, where he is resident in a city or town, and to the amount of $400, where he is resident in any other municipality. It is submitted that the intention of the Legislature is clear in the meaning expressed by the terms “income,” and that the specific designation under sub-secs. 13, 14 and 15 of the Governor-General, Lieutenant-Governor of this province, officers, non-commissioned officers or privates of His Majesty's regular army or navy, and the income of a farmer derived from his farm, indicate that the Legislature's intention as expressed must be taken to imply that consideration was given to all positions and walks of life, and that all classes of persons, officials and officers of the Crown were included for the purpose of taxation as to income as evidenced by direct designation within the Act. Further provision is made under sec. 7, to bring all persons or officers of the Crown within the scope of taxation on income by abolishing exemptions previously enjoyed in so far as subsequent appointments were concerned, as follows:– “7. The exemption to which certain officers connected with the Superior Courts were, at the time of their appointment, and on the 5th day of March, 1880, entitled by statute, in respect of their salaries, is abolished as respects all persons appointed by the Lieutenant-Governor to such offices after the said 5th day of March, 1880, and shall continue in respect of such officers only as were appointed before that date. 4 Edw. VII., ch. 23, sec. 7.” The officers referred to in sec. 7, are the Master in Ordinary, the Registrar, the Referee, the Clerk of the Master's office, and the Clerk of the Registrar, and are provided for by “An Act respecting the Court of Chancery,” R. S. 0. (1877), vol. I., ch. 40, sec 15. Under sub-sec. 2, of sec. 15 it is provided that the salaries of the officers specified and all officers of the said Court, shall be paid free from all taxes and deductions. It is submitted that the exemption of these officers of the Court was such an expression of implicit designation of the intention of the Legislature, at the passing of this statute, that it must be accepted as an exemption extending only to those officers named, and no expression direct or indirect within the Act included in such exemption the members of any branch of the Judiciary of Ontario. Section 10 of the Act makes provision for taxation irrespective of any assessment of land under this Act of every person occupying or using land in the municipality for the purpose of any business mentioned or described in the section for an assessment of a sum to be called “business assessment” to be computed by reference to the assessed value of the land so occupied or used, as therein provided by the various sections and sub-sections. The sections referred to embrace all manner of business capable of being carried on, including, under the term “business,” the practice of professional men. The imposing of a “business assessment” is a further indication of the intention and purpose of the Act, in that the creation of a “business assessment ’’ was a distinction of a class of assessment as contrasted with “income assessment,” and the use of the words “person’’ or “business” in this section relates to the individuals engaged in, and the trade, calling or profession indicated. This section does not infer that the classes mentioned include all manner of means of livelihood, nor can it be argued with any degree of certainty that all sources of income are included in its provisions. Further provision for assessment of income appears in sec.
11, as follows: “11. (1) Subject to the exemptions provided for in Sections 5 and 10 of this Act, the following persons shall be assessed and taxed in respect of income:– (a) Every person not liable to business assessment under section 10, and
(b) Every person although liable to business assessment under section 10, shall also be liable in respect of any income not derived from the business in respect of which he is assessable under that section.
(c) Every person liable to business assessment under clause (f) of sub-section 1, of section 10 in respect of the income derived by him from his business profession or calling, to the extent to which such income exceeds the amount of such business assessment. - - -
(2) Where such income is not a salary or other fixed amount capable of being estimated for the current year, the income of such person for the purposes of assessment shall be taken to be not less than the amount of his income during the year ending on the 31st December then last past. 4 Edw. VII., ch. 23, sec. 11.”
This section provides the concluding expressed intention
of the Legislature in completing the series of assessment of income by sub-sec. (a), which includes every individual not included in any other section of the Act and not directly exempted from income tax by its own provisions. Under sec. 12, sub-sec. 1, authority is given a municipality to assess every person, in respect of income, who resides in the municipality, or has his office or place of business therein. “12.—(1). Subject to the provisions of subsec. 3 of sec. 36 of this Act, every person assessable in respect of income under sec. 11 shall be so assessed in the municipality in which he resides, but may be so assessed in such municipality, either at his place of residence, or at his office or place of business: 4 Edw. VII. ch. 23, sec. 12, (1); 7 Edw. VII. ch. 41, sec. 2.” It is respectfully submitted that the sections herein recited did and do include the station, rank, office and dignity bestowed upon the members of the Judiciary as officers or officials of the Crown, and that the intention of the Legislature at all times, as expressed by the provisions of the statutes, was the inclusion of the individual within its sections, and that its exemption of any body of men was always specific and not by inference. Had the Legislature so chosen, the mere mention of a Judge or Judges as being exempt from taxation for income would have definitely released them from the burden otherwise imposed, as was done by sec. 5, subsecs. 13, 14 and 15, by enumerating as the Legislature did enumerate the Governor-General, Lieutenant-Governor, and other officers and officials and classes of men. It may be argued that a “Judge’ or “Judges” are not “persons” within the meaning of the Act, yet, the interpretation clause discloses no attempt upon the part of the Legislature to limit or construe the meaning, definition or significance generally given and accepted by all authorities as to the proper and reasonable use of the term. Income is peculiar to individuals, and assessments made against persons for such purpose must be construed in the individual sense, unless reasonable precaution has been made to restrict its construction. What distinction then can be drawn between the use of the word “officers ” in paragraph 7 previously cited, and that of “Judge’ or “Judges” as officers of the Courts for the purpose of this Act? This seems the remaining distinction, if any such distinction can be assumed to exist, in further interpretation of the word “person,” and respectfully submitted as interchangeable with and synonymous of the word “individual.” Judges preside as the highest officers and