Douglas H. Mathew

The appellants sought return of withholding amounts remitted on capital gains from share dispositions, arguing the trusts were resident in Barbados under the Canada-Barbados treaty.

The respondent maintained the trusts were resident in Canada because central management and control was exercised in Canada by the principal beneficiaries.

The Court held trust residence is determined by where the trust's real business is carried on, applying the central management and control approach used for corporations.

On the factual findings, the trustee's role was largely administrative and effective control occurred in Canada.

The appeals were dismissed with costs.

The appellant purchased the assets of the Nova Scotia Power Corporation (NSPC) upon its privatization and sought to deduct capital cost allowances.

The Minister of National Revenue denied the deductions on the basis that NSPC, as a Crown agent, was immune from income tax legislation.

The Supreme Court of Canada held that NSPC was an agent of the Crown acting within its purposes, as expressly provided by the provincial Power Corporation Act, and was therefore entitled to Crown immunity under the federal Interpretation Act.