The taxpayer filed his 2007 and 2008 returns on 29 July 2009. He had $289,707,38 of taxable capital gains for 2007, which was reduced to $198,153.78 through the carry-forward of a net capital loss of $73,331.18 from 2000, and $133,637.29 of "net capital losses" in 2008. His 2008 return included a T1A form requesting a carryback of the 2008 net capital losses to 2007. He sent a T1A form by fax to CRA on 14 January 2010 requesting the same carryback. The Minister reduced the taxpayer's tax payable for 2007 on the basis that the the 2008 carry-back amounts were deemed to have been paid on 13 February 2010, 30 days after the faxing of the T1A. (Further carryback requests, apparently of non-capital losses made pursuant to a notice of objection were not in issue.)
Favreau J. found that, pursuant to s. 161(7)(b)(iii), the carry-back amounts should be deemed to have been paid on 28 August 2009, 30 days after the first claiming of the net capital loss carryback in the 2008 return. The taxpayer's appeal was granted to reduce his interest payable accordingly.