INCOME TAX
Reassessment
Appeals from Tax Court of Canada orders ([2006] 3 C.T.C. 2280) allowing respondent to amend reply to notice of appeal—Whether Minister having right, in absence of fraud, to amend reply after limitation period for reassessment expired—Income Tax Act, R.S.C., 1985 (5th Supp.), c. 1, s. 152(9) analysed—Conditions applicable when Minister relying on s. 152(9): Minister cannot include transactions not forming basis of reassessment; right of Minister to present alternative argument in support of assessment subject to s. 152(9)(a), (b), speaking to prejudice to taxpayer; Minister cannot use s. 152(9) to reassess outside time limitations in s. 152(4), or to collect tax exceeding amount in assessment under appeal—Proposed amended reply meeting conditions.
Walsh v. Canada (A‑118‑06, A‑119‑06, 2007 FCA 222, Richard C.J., judgment dated 7/6/07, 6 pp.)