The Minister reassessed the taxpayer in respect of several taxation years by way of a net worth assessment, on the assumption that the taxpayer had taken money out of his wholly-owned corporation to pay for personal expenses without reporting those receipts as income. However, Hogan J. disallowed the assessment for the year that was outside the normal reassessment period, given that no misrepresentation had been proven. At para. 17:
When a taxation year is statute-barred, the Minister cannot simply assume a figure for the taxpayer's living expenses and claim victory if the taxpayer does not demolish this assumption. The Minister can only do this if the reassessment has been issued within the normal reassessment period. The ITA does not require taxpayers to keep records of their personal expenditures.