Selena Sit

The Appellant, a Crown corporation operating a ferry service, appealed GST/HST reassessments for reporting periods between 2006 and 2012.

The issue was the Appellant's entitlement to input tax credits for property and services used in its commercial activities, which involved both taxable and exempt supplies.

The Tax Court found that the Appellant's space-based allocation methodology was fair and reasonable, allowing the appeals and referring the reassessments back to the Minister for reconsideration based on the Appellant's calculated percentages.

The appellant appealed a reassessment of his 2011 taxation year that disallowed a deduction for renounced Canadian Exploration Expenses.

The reassessment was issued after the normal reassessment period.

The Minister relied on subparagraph 152(4)(b)(v) of the Income Tax Act, which extends the period if the reassessment is a consequence of a reduction under subsection 66(12.73).

The Tax Court of Canada held that subsection 66(12.73) requires the corporation to file a statement, and because the corporation failed to file the demanded statement, the precondition for the extended reassessment period was not met.

The appeal was allowed and the reassessment vacated as statute-barred.

The Minister assessed the appellant for $700,000 under subsection 224(4) of the Income Tax Act for failing to comply with a requirement to pay regarding a tax debtor, Paragon.

The appellant argued it did not owe any debt to Paragon at the time the requirement to pay was issued.

The Tax Court of Canada allowed the appeal, finding that a prior settlement agreement and the state of the joint venture accounts demonstrated that the debt had been extinguished before the requirement to pay was issued.