Brown – Tax Court of Canada confirms that interest on an s. 160(1) reassessment accrues from the time of the original s. 160(1) assessment

In 2010, the taxpayer was assessed under s. 160(1) in respect of transfers to her by a corporation in 2005 and 2006. in 2020 she was reassessed pursuant to a consent to judgment to reduce the assessed amounts to agreed amounts, with interest on such agreed amounts running from the dates of the original s. 160(1) assessments.

Spiro J. confirmed that the arrears interest had indeed accrued from the 2010 dates of the original s. 160(1) assessments. Although the taxpayer’s counsel had correctly cited Abrahams for the proposition that once such reassessments were sent to the taxpayer in 2020, they were the only assessments in existence, this did not affect the 2010 balance due dates that had been established on the date of the original s. 160(1) assessments.

Furthermore, s. 160(1)(e) did not constitute an overarching aggregate liability limit so as to prevent the assessment of arrears interest over and above the lesser of the two amounts referred to in s. 160(1)(e). Indeed, as noted in 1455257, the effect of 2013 amendments was to confirm that interest accrued from the date of original assessment under s. 160(1).

Neal Armstrong. Summary of Brown v. The King, 2025 TCC 184 under s. 160(2).