Failure to properly complete a T1135 could extend the normal reassessment period for unrelated matters

Draft s. 152(4)(b.2) (contained most recently in the September 13, 2013 package) extends the normal reassessment period by three years where (a) there has been a failure to file the T1135 as and when required or to provide therein the required information in respect of a specified foreign property, and (b) to report an amount, in respect of a specified foreign property, that is required to be included in the taxpayer's income.  CRA has stated that this extension occurs "for all purposes," suggesting that CRA considers that it could then reassess unrelated matters within the extended period.

Neal Armstrong.  Summary of 11 June 2013 STEP Round Table, Q. 3, 2013-0485761C6 under s. 152(4)(b.2).