Wilson v. Canada
T-2521-89
Simpson J.
23/7/96
8 pp.
Appeal from reassessment of 1978 tax return on basis MNR failed to reassess with due dispatch following notice of objection-Deductibility of taxpayer's farm losses in 1976, 1977 disputed when 1978 tax return filed-As Revenue Canada restricting farm losses claimed in 1976, 1977, taxpayer calculated restricted farm loss carry-forward, resulting in nil net income from farming-Notice of assessment accepting declared federal, provincial tax figures, but showing unpaid balance for current and previous years under statement of account-Taxpayer filing notice of objection relating to matters in earlier years already subject of objections, appeals in 1979-No action taken by Revenue Canada, taxpayer-MNR under duty to respond to notice of objection "with all due dispatch" under Income Tax Act, s. 165(3)-In 1988 Federal Court holding Revenue Canada erred in treatment of farm losses; taxpayer entitled to deduct all farm losses from 1976, 1977 income-Resulting in no restricted farm losses to carry forward to 1978-MNR issuing notice of reassessment in 1989 deleting restricted farm loss carry forward, meaning taxpayer owed additional tax-Appeal allowed-Distinction between assessment, notice of assessment-Revenue Canada's response to declared federal, provincial tax was actual assessment, although notice of assessment also including statement of account reflecting total amount due, including unpaid amounts from other years-Right to object in s. 165 relating only to assessment, not to every item on notice of assessment form-Not relating to balance due from prior years-Taxpayer having nil assessment for 1978-Objection only relating to figures in statement of account section in assessment form-Objection nullity-No right of appeal under s. 169 because appeal only possible if notice of objection filed-1978 Act requiring reassessment to have been filed within four years of original assessment-Reassessment out of time, of no force and effect-No reassessments for 1978 possible four years after mailing of assessment-Income Tax Act, S.C. 1970-71-72, c. 63, ss. 152(4)(b), 165(3), 169.