In 2009 the Tax Court found that a 2004 reassessment in respect of the taxpayer's 1999 taxation year had been made outside of the limitations period and vacated it. The Minister issued a reassessment in 2009 purporting to give effect to the Tax Court's decision, and purported to make consequential reassessments for 2000 and 2005 pursuant to s. 152(4.3).
Woods J. found that the consequential assessments could not be supported by s. 152(4.3) because, among other reasons, the 2009 assessment was statute-barred. The Minister argued that it was required to make the 2009 reassessment in order to comply with the Tax Court's decision. Woods J. stated (at para. 43):
I would have thought that the authority of the Tax Court of Canada to determine tax liability is clear by the precise wording in subsection 171(1) of the Act. Under this provision, if an appeal is allowed, the Court can either vacate the assessment, vary it, or refer the assessment back to the Minister for reconsideration and reassessment. If the assessment is vacated or varied, s. 171(1) does not contemplate that a further reassessment would be made.