Taxing Times at the Supreme Court of Canada: The Contributions of Justice L'Heureux-Dubé to a Better Understanding of the Application of the Charter to the Income Tax System

This chapter discusses the important contribution that L'Heureux-Dube J. made to our understanding of the function and purpose of the Canadian tax system. Her analysis recognized that the system is much more than a mere revenue-raising instrument; it is also an important social and economic tool. Using this position as her starting point, she was able to situate the tax system in its social context when determining the application of its provisions. Such an approach leads to a fairer and more accurate interpretation of a highly complex piece of legislation.

The author argues that L'Heureux-Dube J.’s analysis of the application of section 15(1) of the Charter of Rights and Freedoms to our income tax system has laid the groundwork for future successful challenges to discriminatory provisions of the Income Tax Act by members of historically disadvantaged groups. It is contended that, drawing on her analysis, judges considering the application of section 15(1) of the Charter to tax legislation will be less deferential in their approach to the Act. They will also, by drawing on her contextual approach, be better situated to understand the complex ways in which the Act discriminates in contravention of the Charter. The author concludes by hypothesizing about how L'Heureux-Dube J.’s analysis could be used to challenge the discriminatory application of the spousal support tax rules to separated or divorced women. This article focuses on two of her tax decisions: Symes v. Canada and Thibaudeau v. Canada. In both those cases the Supreme Court of Canada split along gender lines; male justices formed the Court majority while the two women justices dissented.