The Minister assessed the taxpayer for his 2004 taxation year within the normal reassessment period on the basis that the taxpayer had realized a gain on income rather than capital account on selling equipment to his corporation and that the cost of the transferred equipment was lower than reported. After the taxpayer objected, the Minister made an additional reassessment beyond the normal reassessment period to include additional income in the taxpayer's hands on the basis that the transferred equipment had a higher fair market value than the sale price.
The Minister argued that s. 165(5) validated the second reassessment as the taxpayer had previously filed a notice of objection. Hogan J found that Anchor Point establishes that s. 165(5) cannot be used to add income in a reassessment made beyond the normal reassessment period. As the Crown also did not advance any evidence of "neglect" etc. by the taxpayer, the second reassessment was statute-barred.