Personal corporation status under income tax law requires control by a qualifying individual, not executors acting for estate beneficiaries.

For purposes of section 68 of the Income Tax Act, a personal corporation required control throughout the taxation year by a natural living individual resident in Canada, or by that individual and family members resident in Canada, or by another person acting on their behalf. Executors administering an estate did not satisfy that requirement because they controlled the shares for multiple beneficiaries rather than for a single qualifying individual or that individual's family. The broader definitions of "individual" and "person" did not alter the contextual meaning of the provision, and the trust-and-estate rule could not expand the scope of the personal corporation definition. The appellant was therefore not a personal corporation for the relevant taxation years, and the reassessments were upheld.

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Issues: Whether the appellant was a personal corporation under section 68 of the Income Tax Act where its shares were held and controlled by executors of an estate during the taxation years in question.

Analysis: The statutory definition of a personal corporation required control during the whole taxation year by an individual resident in Canada, by such an individual with family members resident in Canada, or by another person on their behalf. The Court held that executors administering an estate do not fit the contemplated meaning of the controlling "individual" in that provision. The executors controlled the company on behalf of multiple beneficiaries, not on behalf of a single individual or that individual and his family. The general definitions of "individual" and "person" did not alter the contextual meaning of section 68, and section 63 dealing with trusts and estates could not be used to expand the scope of the personal corporation definition.

Conclusion: The appellant was not a personal corporation for the 1955 and 1956 taxation years and the reassessments were upheld.

Ratio Decidendi: For the purposes of section 68 of the Income Tax Act, the controlling "individual" must be a natural living person exercising control on his own behalf, and executors controlling shares on behalf of estate beneficiaries do not satisfy that requirement.

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