INCOME TAX |
Reassessment |
Clibertre Exploration Ltd. v. M.N.R.
A-56-02
2003 FCA 16, Sharlow J.A.
14/1/03
4 pp.
Judicial review of decision of Tax Court ([1999] 2 C.T.C. 2869) dismissing appeal from assessment for 1996--Minister argued Income Tax Act, s. 152(4) prohibits Minister from reassessing years 1980 to 1988 more than three years from date of first assessment for year, and thus characterization of applicant's expenses for those years could not be changed as applicant had requested--Court disagreeing with Minister's interpretation and finding Tax Court Judge erred in accepting Minister's interpretation--If, in fact, applicant reported non-capital losses for every year from 1980 to 1995, no need for Minister to reassess applicant for those years in order to characterize as Canadian exploration expenses amounts giving rise to non-capital losses initially claimed for those years-- Taxable income and thus tax payable for each of those years would be nil whether expenses claimed as deductions in computing non-capital loss, or treated as Canadian exploration expenses--Application allowed--Income Tax Act, R.S.C., 1985 (5th Supp.), c. 1, s. 152(4) (as am. by S.C. 1998, c. 19, s. 181).