IncoLimited v. The Queen, 2004 TCC 373, aff'd 2005 DTC 5110, 2005 FCA 44 -- summary under Subsection 152(1.2)

The taxpayer took the position that a letter of Revenue Canada indicating the amount of non-capital losses of the taxpayer for specified years, which were the amounts as filed by the taxpayer, was a determination of loss made under s. 152(1.2), with the result that such determination was binding on the Minister. Sarchuk J. found that neither s. 152(1.2) nor s. 152(4) empowered the Minister to issue a notice of loss determination. Such a notice could only be issued under s. 152(1.1) where the determination of the Minister differed from that of the taxpayer. S.152(1.1) had clearly been intended to deal with the scenario where a nil assessment had been issued so that, in the absence of s. 152(1.1), the taxpayer would have no right of appeal from a nil assessment.