CRA finds that a taxpayer's failure to file returns was a “misrepresentation” entitling CRA to open up a statute-barred year

A taxpayer failed to file a tax return notwithstanding a s. 150(2) demand to do so, CRA assessed under s. 152(7) without the return and then, more than three years later, discovered some income which it had missed. In finding that it was not now statute-barred from assessing this additional income, CRA stated that by virtue of not filing the return "the taxpayer has made a misrepresentation by virtue of wilful default."

This accords with common sense, but not with the meaning of "misrepresentation:" the taxpayer quite clearly had not made any representation.

Neal Armstrong. Summary of 4 December 2014 Memo 2014-0526451I7 F under s. 152(4)(a)(i).