Paul Kvas v. The Queen, 2016 DTC 1169

Facts: The appellants were brothers who had incorporated a company (the "Corporation") which was, in January 2008, involuntarily dissolved for failure to file corporate tax returns as required. In 2014, the minister issued an assessment under section 160 Notice of Assessment against the appellants. In issuing that assessment, the minister relied on the fact that a balance sheet prepared for the company after the dissolution date afforded a deductive dissipation of assets and that T5s were issued in 2009 describing dividends paid in 2008 to the appellants, in roughly the same amounts as the assumed dissipated assets.

The appellants appealed from the section 160 assessment and their appeals were heard on common evidence.