In Inwest Investments Ltd. v. The Queen, 2015 BCSC 1375 (copy attached), a holding company sold shares for a large capital gain.  The company adopted the position that no British Columbia income tax was payable on the gain because the company had no “permanent establishment” in British Columbia.  The CRA later reassessed a successor of the holding company (by amalgamation) more than five years after the normal reassessment limitation period had expired – on the basis of a “negligent misrepresentation” in the holding company’s tax return.  The Supreme Court of British Columbia disagreed with the CRA.  First, there was no “misrepresentation”; the position taken in the return was “arguable” based on the case law and facts (see paragraph 141).  Second, the position was not “negligent” in any event; the holding company had a bona fide belief that the position was correct, which belief was supported by professional advice received at the time (see paragraphs 148, 177 and 178).