When the taxpayer was reassessed for its 1981 taxation year on the basis that it had realized a taxable capital gain, it choose to eliminate the resulting taxable income by carrying back a net capital loss for its 1982 taxation year, rather than utilizing undeclared scientific researched expenditures or investment tax credits for its 1981 taxation year. In finding that this choice by the taxpayer resulted in interest payable because of s. 161(7), Reed J. stated (p. 6699):
"I interpret the term 'tax payable', upon which interest is to be paid, pursuant to that subsection, as referring to the tax payable on the basis of the particular way the taxpayer chooses to compute its taxable income, when there is an option available, in this regard. I do not interpret that subsection as referring to the tax which might have been payable had another option been chosen."
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