Papiers Cascades Cabano Inc. c. La Reine, 2006 DTC 2305, 2005 TCC 396 -- summary under Investment Tax Credit

After the 1995 taxation year the taxpayer became statute-barred, the Minister determined that the taxpayer had claimed an excessive investment tax credit entitlement in respect of its 1995 year. Accordingly, the Minister took the position that the opening ITC balance of the taxpayer for its 1996 taxation year was negative $206,364 on the basis that paragraph (c) should reflect the amounts which the taxpayer should have claimed, and paragraph (f) should reflect the amounts actually deducted by the taxpayer in the preceding years. Lamarre Proulx J. indicated that this approach of the Minister amounted "to asserting that a taxpayer may have to pay back in a subsequent year an ITC that he or she claimed as a deduction from tax payable for a year and that was considered in the assessment for that year" and that, accordingly, this approach was not permitted.