The appellant appealed reassessments under subsection 160(1) of the Income Tax Act, arguing that the Minister was not entitled to assess arrears interest on the agreed amounts of liability for non-arm's length transfers.
The parties brought a Rule 58 motion to determine this question of law.
The Tax Court of Canada held that the Minister is not only entitled but required to assess arrears interest on a subsection 160(1) reassessment, as the statutory scheme incorporates the general assessment provisions and explicitly preserves liability for interest.
The appeal was dismissed without costs.
