The individual taxpayer ("Vincent") was the sole shareholder and director of the corporate taxpayer ("9067"). Vincent's home, which was owned by 9067 and also used for business purposes, burned down. The insurance policy on the property, under which 9067 received a total of $1,170,800, stipulated that living expenses paid under the policy would not exceed $86,400 - however, Hogan J. found that none of the $1,170,800 were in fact living expenses. Therefore, by depositing $86,400 of the insurance benefits into his personal account, Vincent had received a shareholder benefit.
However, Hogan J. went on to find that Vincent could not be reassessed beyond the normal reassessment period. He stated (at para. 78):
The evidence shows that the insurance adjuster, Mr. Gingras, did not have to resort to a claim for living expenses to secure a final settlement equal to the maximum coverage of $1,170,800. However, the Respondent has not shown that the Appellant was informed of this fact. The fact that an amount of $30,000 was advanced before the final settlement could have led the Appellant to believe that the final benefits included living expenses. The Respondent has not satisfied me that the Appellant had reasons to doubt that this was so.