Biles Estate – Federal Court accepts that an alleged settlement agreement had an implied condition that the subject property’s legal ownership be confirmed

Phelan J accepted a CRA submission that an alleged settlement agreement with the taxpayer was subject to an implied condition that the ownership of the property in question be confirmed to be consistent with the proposed reassessment. This was not established. Phelan J stated:

[A]bsent an agreement as to the chain of title not only were the parties not in agreement about the Proposal, but the Proposal could not be legally implemented. A reassessment cannot be made contrary to law.

Neal Armstrong. Summary of Biles Estate v. Canada (National Revenue), 2017 FC 371 under s. 152(4.2).