Page 17 - Test 1 Slides - 1. Introduction & Application Of Legislation

INTRODUCTION & APPLICATION OF LEGISLATION

Interpretation rules

• Most of the definitions of the words and terms used in the

Income Tax Act can be found in section 1, but sometimes other

sections contain definitions as well. Where a term is used in the
Act but is not defined in the Act, one should go to the

Interpretation Act.

• The purpose of the Interpretation Act is to facilitate the
interpretation and understanding of legislation, and to promote

uniformity in the use of language in legislation; it is also to align

the interpretation of legislation with the Constitution.

• When interpreting the wording used in the Income Tax Act:

• You should apply the literal meaning first – words should be limited to
their simplest, ordinary, most obvious meaning (“clear and
unambiguous”). If this meaning is clear then it must be applied even if

it gives rise to unfair results.

17