The Appellant's spouse, who had a tax liability, deposited his paycheques into the Appellant's personal bank account because he was unable to open his own account due to criminal charges.
In return, the Appellant paid his credit card bills pursuant to his directions.
The Minister assessed the Appellant under section 160 of the Income Tax Act for the funds transferred.
The Tax Court of Canada allowed the appeal, finding that there was a legally enforceable contract between the spouses and that the Appellant gave valid consideration equal in value to the property transferred by paying the credit card bills.
Therefore, section 160 did not apply.
