The taxpayer and his siblings received a real estate property from a testamentary trust on a rollover basis under s. 107(2) and sold the property. The Minister assessed capital gains arising on this sale apparently on the basis that the the property's adjusted cost base to the taxpayer was based on its 1971 V-Day value - notwithstanding that there had been a deemed disposition and reacquisition of the property by the trust at fair market value in 1999 under the 21-year deemed disposition rule (whose application had been deferred to 1999 by virtue of an election made under s. 104(5.3)(a)(i)), although the 1999 deemed disposition was not reported by the trust.
Favreau J dismissed the self-represented taxpayer's appeal from this assessment, but coupled with a comment (at para. 15) that capital gains had been accruing in the trust since 1999 (perhaps implying that the taxpayer's capital gain should be computed based on the property's 1999 rather than 1971 value).