Following the serving of notices of objection by the taxpayer to 1995 reassessment and a settlement of the issues raised in notices of objection with the Minister following the filing of appeals to the Tax Court, in 1999 the Minister issued new reassessments of the relevant taxation years pursuant to s. 169(3). The taxpayer then served notices of objection against the new reassessments raising issues that had not been included in his prior appeals but were set out in the original notices of objection.
In finding that s. 165(7) did not validate the appeal of the taxpayer, Rothstein J.A. stated (at p. 5630):
"Subsection 165(7) does not apply to permit a subsequent appeal from a reassessment issued under subsection 169(3) that disposes of a prior appeal. Paragraph 165(7)(a), in its context, is concerned with a taxpayer's receiving a second reassessment in the period prior to the taxpayer filing a notice of appeal. Paragraph 165(7)(b) is concerned with the period after the taxpayer files a notice of appeal but before the appeal is dealt with ... . It does not apply after appeal proceedings have been disposed of and, in particular, after they have been disposed of under subsection 169(3)."