Appeal concerning Nova Scotia succession duties assessed against resident grandchildren following an estate-planning scheme using Alberta parent and subsidiary corporations to receive the residue of a Nova Scotia estate.
The majority held that the non-resident parent corporation was "beneficially entitled" to the estate property within the meaning of s. 2(5), because it had complete control over the named subsidiary beneficiary and could compel transfer of the residue.
The majority further held that the combined effect of ss. 2(5) and 8(2) imposed a valid in personam tax on resident successors and was intra vires the provincial legislature under s. 92(2).
The dissent would have allowed the appeal, holding that "beneficially entitled" carried its established equitable meaning and did not extend through the corporate structure.
