Law360 Canada ( August 22, 2022, 9:16 AM EDT) -- Appeal by Kufsky from a decision of the Tax Court of Canada that dismissed her appeal from an income tax assessment. The appellant was the sole shareholder of her corporation, which provided interior home decorating advice. When the appellant filed her tax returns for the years in question, she did not report any dividends. In 2012, T1 adjustment requests were completed by the appellant’s accountants to reflect dividends paid to her by her corporation. The dividends were set off against the amount payable by the appellant to her corporation. The appellant was reassessed to impose tax based on the dividends. She paid the additional tax arising from the reassessments without filing any notice of objection. The Minister of National Revenue then assessed the appellant based on the $68,616 in unpaid tax debt of her corporation on the basis that the corporation had paid dividends to her that exceeded the amount of the corporation’s unpaid tax debt. The Tax Court found the amounts in question were still dividends, even if the corporation did not comply with the applicable corporate legislation, and no portion of the dividends were loan repayments....