André Lemay

The appellant non-profit corporation operated a large low-rental residence for indigent elderly persons and sought a full municipal real estate tax exemption as a reception centre.

The Court held that tax legislation is interpreted under the ordinary rules of interpretation, with the applicable degree of strictness or liberality determined by legislative purpose, substance prevailing over form where consistent with statutory text and purpose, and only residual unresolved doubt favouring the taxpayer.

Applying that approach, the Court concluded the entire facility qualified as a reception centre under the health services legislation and was used for the statutory purposes contemplated by the municipal taxation statute.

The exemption was not conditional on holding a permit for the whole facility, and the specialized tribunal's decision restoring full exemption was reinstated.

The appellants sought to invalidate a municipal by-law authorizing the construction of a municipal building and a loan to pay for it, arguing that the municipality failed to observe the mandatory 15-day notice period before holding a poll.

The poll, which approved the by-law by a three-vote majority, was held only 10 days after notice was given.

The Supreme Court of Canada allowed the appeal, holding that the shortened delay could have affected the result of the vote given the narrow margin.

Consequently, the poll was invalidated and the by-law was declared inoperative for lacking the required voter approval.