The federal Minister assessed the settlor of the appellant trust on the basis that the trust's taxable capital gain and investment income were taxable in his hands because the trust was a sham or invalidly settled, or because s. 75(2) applied. The settlor then filed a notice of objection. The Minister, as agent for the Government of Ontario, issued alternative reassessments in respect of the trust's Ontario provincial tax liability on the basis of the alternative conclusion that the Trust, if valid, was taxable in Ontario, not Alberta. The trustee for the trust filed a notice of objection to this assessment. In dismissing an application to the Court to declare that the trust was valid, Nixon J adverted to the principle in Addison & Leyen Ltd v Canada, 2007 SCC 33 (CanLII), [2007] 2 S.C.R. 793, at para. 11 that "Judicial review should not be used to develop a new form of incidental litigation designed to circumvent the system of tax appeals established by Parliament and the jurisdiction of the Tax Court," and stated (at para. 66):
The only dispute with respect to the validity of the Trust is with the CRA in relation to the payment of tax.
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