After finding against the taxpayer on other grounds, MacTavish J. went on to state (at 6447):
"LJP's submission that it should be allowed to argue that, based upon the principles of res judicata or issue estoppel, the decision of the Tax Court in relation to the 1995, 1996 and 1997 taxation years should be applied to the 1998 and 1999 tax years is similarly bereft of any chance of success. The Federal Court of Appeal was categorical in Sherway that res judicata does not arise in relation to the assessment of different taxation years.