INCOME TAX
Practice
Appeals from (1) interlocutory order of Tax Court of Canada (T.C.C.) disallowing some substantive amendments sought by Crown in reply to respondent’s notice of appeal; (2) amended order issued by T.C.C.—Cross-appeal by respondent challenging amendments allowed by T.C.C.—Underlying issue in appeals, cross-appeal turning on legal effect of waiver of normal reassessment period, extent to which MNR restricted in defending reassessment issued pursuant to waiver by matter specified therein—Waiver when given by taxpayer, accepted by Minister giving rise to bargain of sorts—T.C.C.’s conclusion proposed inclusion of foreign accrual property income in respondent’s income not matter that reasonably relates to matter specified in waiver open to it, correct—As amendments in question purport to provide complete picture of transactions which reassessments seek to recharacterize pursuant to General Anti-Avoidance Rule, open to T.C.C. to hold they reasonably relate to matter set out in waivers—Appeals, cross-appeal dismissed.
Canada v. Honeywell Ltd. (A-291-06, A-406-06, 2007 FCA 22, Noël J.A., judgment dated 16/1/07, 15 pp.)