John Loukidelis

The appellant sold her shares in a family paving business to a holding company owned by her cousin.

The Minister reassessed the appellant under section 84.1 of the Income Tax Act, treating her capital gain as a deemed dividend on the basis that she and the holding company did not deal at arm's length.

The Tax Court of Canada allowed the appeal and vacated the reassessments, finding that the appellant and the holding company engaged in hard bargaining and did not act in concert without separate interests.

The court concluded they dealt at arm's length.

The appellant was assessed under subsection 159(3) of the Income Tax Act for the tax debt of his deceased father's estate after he and his brother, acting as executors, distributed estate property without obtaining a clearance certificate.

The appellant argued he had renounced his executorship shortly after his father's death and that the Minister was out of time to assess the 2006 tax debt.

The Tax Court of Canada found that the appellant had not renounced his executorship, as he signed land transfer documents as an executor years later.

The Court also held that the assessment was issued within the applicable limitation period.

The appeal was dismissed.