INCOME TAX
PRACTICE
Appeal from Tax Court of Canada decision (2006 TCC 579) allowing taxpayer’s appeal against reassessment of income
tax liability for 1997 taxation year—T.C.C. holding reassessment invalid as made beyond five-year limitation period
prescribed by Art. XXVII(3) (Limitation Provision) of Treaty between Canada and Barbados—In August 2004, Minister
including $659,974 in income of taxpayer on basis such amount constituted previously unreported foreign accrual property
income (FAPI) of taxpayer for taxation year, within meaning of Income Tax Act, R.S.C., 1985 (5th Supp.), c. 1, s. 95(1)—
FAPI provision stipulating Canada’s ability to tax FAPI inclusions in income of Canadian residents unfettered by any
provision of Treaty—FAPI provision overriding limitation provision in respect of FAPI reassessment—Appeal allowed.
CANADA V. CANWEST MEDIAWORKS INC. (A-524-06, 2008 FCA 5, Ryer J.A., judgment dated January 9, 2008, 7 pp.)