Can the TCC, on Appeal, alter the Character of the Amount?

Last v The Queen, 2012 TCC 352

There were a number of issues that were mainly factual determination.  The one relevant legal issue was whether the TCC can re-chacacterize the nature of the amount from capital income to business income?

[NOTE: in this case the taxpayer admitted that the income was from busines]

The Court held that it would be improper for it to re-chacterize the nature of the income, even if it were limited so that the the total amount of tax payable does not increase, as this would have the effect of of allowing the MNR to reassess beyong the re-assessment period by changing the basis of the assessment.

ANALYSIS