An argument of the Crown that a taxpayer is not entitled to object to an assessment based on its own return of income or an assessment that does not result in an adverse adjustment, was rejected. Bowman A.C.J. stated (at p. 183) that:
"There must be very compelling reasons to find that a taxpayer's rights under the Income Tax Act are implicitly restricted where the rights are explicitly conferred and no restrictions are explicitly expressed."
In affirming this finding, Sharlow JA stated (at para. 5):
According to subsections 165(1) and 169(1) of the Income Tax Act, the right to object and appeal may be asserted when the Minister makes an assessment. These provisions make no distinction between an objection to an assessment that is inaccurate because of an act or omission of the taxpayer, and an objection to an assessment that is inaccurate because of an act or omission of the Minister, whether the result of an audit or not.