In Suncor Energy Inc. v. Canada (Fed CA, 2026) the Federal Court of Appeal allowed an income tax appeal, this brought against a Tax Court ruling respecting ITA s.13(31) ['Recaptured depreciation - Transfers of property'] and arm's-length transfers.
Here the court considers the statutory interpretation principle of 'necessary implication':
[42] This is consistent with the principle of necessary implication as set out by Professor Ruth Sullivan in Sullivan on the Construction of Statutes, 5th ed. (Toronto: LexisNexis Canada Inc., 2008) at page 183:
Reliance on necessary implication: Legislative silence with respect to a matter does not necessarily amount to a gap in the legislative scheme. A gap is a ‘true’ gap only if the legislature’s intention with respect to the matter cannot be established by necessary implication. An intention is necessarily implied if (1) it can be established using ordinary interpretation techniques and (2) the implication is essential to make sense of the legislation or to implement its scheme.
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