Canada v. Kayelle Management ( Yukon ) Inc.
A-1000-91
Décary J.A.
17/11/93
6 pp.
Application for judicial review of TCC decision -- Respondent's fiscal year ending February 1, 1990 -- TCC holding respondent not liable to pay interest from May 2, 1990 to June 1, 1990 -- At issue interpretation of phrase "the end of the third month following the end of the year" in Income Tax Act, s. 157(1)(b)(i) -- Respondent's interpretation not meeting "words-in-total-context approach" formulated by F.C.A. in Lor-Wes Contracting Ltd. v. The Queen, [1986] 1 F.C. 346 "with a view to determining the object and spirit of the taxing provisions"-"The end of the year" meaning end of fiscal year, not end of calendar year -- Fiscal year ending at moment determined by corporation -- "The end of the third month" not meaning end of third calendar month -- "Following" pivotal word -- Period "following" end of fiscal year starting as soon as February 2-Interpretation given by TCC ignoring existence and meaning of word "following" -- Interpretation Act, ss. 28, 35(1) not applicable to s. 157(1)(b)(i) where intention of Parliament not to use calendar month -- Application allowed -- Income Tax Act, S.C. 1970-71-72, c. 63, s. 157(1)(b)(i) (as am. by S.C. 1985, c. 45. s. 88(2))[cad 211]Interpretation Act, R.S.C., 1985, c. I-21, ss. 28, 35.