Canada v. Wesbrook Management Ltd.
A-790-95
Hugessen J.A.
5/11/96
7 pp.
Appeal from T.C.C. decision allowing respondent's appeal and vacating assessment dated February 18, 1992 in which Minister assessed respondent under Income Tax Act, s. 159(2),(3) in respect of tax liability of 323466 B.C. Ltd. (466) for latter's taxation year ending May 7, 1988-In September 1988, respondent acquired all shares of 466-On December 28, 1988, caused it to be liquidated, assets distributed-In August 1993, 466 restored to register of companies in British Columbia upon application by appellant, deemed to have continued in existence-In computing income for taxation year ended May 7, 1988, 466 deducted $1,594,828, share of alleged loss flowing from Grand Bell Partnership-Minister allowing deduction of Grand Bell loss both in initial assessment dated March 9, 1989 and in reassessment dated July 4, 1989-Statutebarred from disallowing deduction of Grand Bell loss-466 both assessed and reassessed in respect of 1988 taxation year-There being no question of fraud or misrepresentation, no further reassessment could be issued to 466 after March 9, 1992-Assessment, once issued and unless varied by competent authority, has effect of fixing liability for tax-Once, as herein, assessment can no longer be varied, vacated on objection or appeal and no further reassessment can be issued, last assessment deemed valid, binding on taxpayer, Minister-Appeal dismissed-Income Tax Act, S.C. 1970-71-72, c. 63, s. 159(2) (as am. by S.C. 1985, c. 45, s. 90(1)), (3) (as am. idem).