The Minister reassessed the appellant's 2005 taxation year beyond the normal reassessment period to include a shareholder benefit and a shareholder loan after a corporation transferred four properties to him for no consideration.
The Tax Court found that the appellant was a shareholder of the corporation and that the transfer constituted a shareholder benefit under subsection 15(1) of the Income Tax Act, but found no shareholder loan.
The Court determined the fair market value of the properties was $2,436,900, lower than the Minister's assumption.
The Court also held that the Minister was entitled to reassess beyond the normal period because the appellant's failure to report the benefit was a misrepresentation attributable to neglect or carelessness.
The appeal was allowed to refer the reassessment back to the Minister to adjust the benefit amount.
