Income Tax
Practice
Appeal from Tax Court of Canada (T.C.C.) decision (2006 TCC 681) dismissing appeal against reassessment of 1997 taxation year issued in 2003 — In 1997, ICON Capital Limited Partnership issuing limited partnership units to appellant for consideration including assumption by appellant of portion of indebtedness of Limited Partnership — Limited Partnership allocating loss in amount of $47,646 to appellant — Under Income Tax Act, R.S.C., 1985 (5th Supp.), c.1 , s. 143.2(6), adjusted cost base of interest in limited partnership can be reduced by amount equal to any limited-recourse amount of limited partner relating to limited partnership interest — T.C.C. correctly concluding assumed indebtedness limited-recourse amount pursuant to s. 143.2(7), (13) — Appellant not substantiating correct amount of interest paid — Failure of promoter of tax shelter to provide offshore information sufficient basis for application of Act, s. 143.2(13) to deem assumed indebtedness to be limited-recourse amount — T.C.C. correctly finding s. 143.2(15) empowers Minister to levy assessments, reassessments against appellant beyond normal reassessment period in respect of 1997 taxation year — Reassessment not time-barred — Appeal dismissed.
Tolhoek v. Canada (A-19-07, 2008 FCA 128, Ryer J.A., judgment dated 7/4/08, 30 pp.)