Attorney-General for Canada v. Attorney-General for Quebec / Re Silver Bros. Ltd.

Parties

Procedural Posture

Appeal; Constitutional Law / Appeal to the Supreme Court of Canada From the Court of King’s Bench (quebec)

Legal Issues

1. 1 Whether s.17 of the Dominion amendment to the Special War Revenue Act (12-13 Geo. V, c.47) creates a first charge on assets that takes priority over provincial tax priority under R.S.Q. 1909 s.1357 and over protections in Bankruptcy Act s.51(6)
2. 2 Whether s.17 is intra vires Parliament under its s.91 powers (notably items 3 and 21)
3. 3 Whether Interpretation Act s.16 preserves provincial statutory rights from being affected by federal enactments

Ratio Decidendi

The majority held s.17 of the Dominion amendment is intra vires and, by its explicit 'notwithstanding' language, excludes the operation of provincial priority under R.S.Q. s.1357 and the protective saving in Bankruptcy Act s.51(6), thereby giving the Dominion excise tax claim priority as a first charge on the bankrupt's assets; Interpretation Act s.16 does not preserve the provincial statutory priority against this valid federal enactment.

Court Disposition

Appeal allowed with costs

Orders

• Appeal allowed with costs
• Judgment of Court of King’s Bench reversed and trial judge's decision reinstated giving priority to the Dominion claim under s.17 of 12-13 Geo. V c.47