Proposed s. 231.8 may deter taxpayers from challenging s. 231.2 requirements
Proposed s. 231.8 will extend the normal reassessment period by the period of time during which an s. 231.2 requirement or an s. 231.7 compliance order is being contested. The stop-the-clock period begins (1) re a requirement, when the taxpayer applies for judicial review; and (2) re a compliance order, when the taxpayer opposes the application. The period ends on the day the relevant application is “finally disposed of.”
[T]he stop-the-clock suspension operates in respect of all audit issues, not just those to which the requirement or compliance application relates. In effect, proposed section 231.8 may deter taxpayers from challenging a requirement through the judicial review process because the challenge would result in extending the life of all issues to which the reassessment period relates.
Neal Armstrong. Summary of Nick Pantaleo and Marisa Wyse, “Power to Lengthen Assessment Period,” Canadian Tax Highlights, Vol. 26, No. 5, May 2018, p. 1 under s. 231.8.