Guy
Tremblay
[TRANSLATION]:—This
application
for
an
extension
of
time
was
heard
at
Quebec
City,
Quebec
on
October
12,
1982.
1.
Point
at
Issue
The
question
is
whether
the
application
for
an
extension
of
time
to
file
appellant’s
notice
of
objection
is
valid.
2.
Facts
The
facts
are
not
in
dispute.
2.01
Based
on
information
provided
by
the
Quebec
Department
of
Revenue
in
March
1980,
the
federal
Department
of
National
Revenue
issued
notices
of
reassessment
on
April
8,
1980
regarding
the
1976
and
1977
taxation
years.
Only
half
the
expenses
claimed
by
appellant
in
computing
income
for
those
years
was
allowed,
that
is
some
$22,091
in
1976
and
$42,500
in
1977.
2.02
In
the
meantime
appellant
changed
its
accountant.
The
preceding
accountant
had
not
thought
it
necessary
to
answer
the
Department’s
requests
for
information.
2.03
Appellant,
represented
by
its
new
accountant,
had
an
interview
with
an
employee
of
the
Quebec
Department
of
Revenue.
The
latter
issued
new
notices
of
assessment
allowing
all
the
expenses
claimed.
The
employee
of
the
Quebec
Department
of
Revenue
then
told
appellant
that
the
new
information
would
be
sent
to
the
Department
of
National
Revenue
and
that
the
latter
should
also
revise
its
position.
2.04
In
February
1982,
appellant
learned
that
the
Department
of
National
Revenue
had
not
yet
received
the
documents
from
the
Quebec
Department
of
Revenue.
It
then
sent
respondent’s
employee
the
provincial
C-5
forms.
2.05
On
June
17,
1982
this
employee
informed
counsel
for
the
appellant
that
the
latter
was
entitled
to
deduct
all
the
expenses
claimed,
but
that
the
time
limits
had
expired
and
it
would
be
necessary
to
apply
to
the
Tax
Review
Board
for
an
extension
of
time
in
which
to
file
notices
of
objection.
If
the
application
was
allowed
then
the
expenses
would
be
approved.
2.06
The
application
for
an
extension
of
time
was
filed
on
June
18,
1982.
1.
Act
—
Analysis
3.01
Act
The
principal
provisions
of
the
Income
Tax
Act,
SC
1970-71-72,
c
63,
as
amended,
involved
in
the
case
at
bar
are
167(1)
and
167(5).
They
read
as
follows:
Sec
167
Application
to
Review
Board
for
time
extention
(1)
Where
no
objection
to
an
assessment
under
section
165
or
appeal
to
the
Tax
Review
Board
under
section
169,
has
been
made
or
instituted
within
the
time
limited
by
section
165
or
169,
as
the
case
may
be,
for
doing
so,
an
application
may
be
made
to
the
Tax
Review
Board
for
an
order
extending
the
time
within
which
a
notice
of
objection
may
be
served
or
an
appeal
instituted
and
the
Board
may,
if
in
its
opinion
the
circumstances
of
the
case
are
such
that
it
would
be
just
and
equitable
to
do
so,
make
an
order
extending
the
time
for
objecting
or
appealing
and
may
impose
such
terms
as
it
deems
just.
(5)
When
order
to
be
made.
No
order
shall
be
made
under
subsection
(1
)
or
(4)
(a)
unless
the
application
to
extend
the
time
for
objecting
or
appealing
is
made
within
one
year
after
the
expiration
of
the
time
otherwise
limited
by
this
Act
for
objecting
to
or
appealing
from
the
assessment
in
respect
of
which
the
application
is
made;
(b)
if
the
Board
or
Court
has
previously
made
an
order
extending
the
time
for
objecting
to
or
appealing
from
the
assessment;
(c)
unless
the
Board
or
Court
is
satisfied
that,
(i)
but
for
the
circumstances
mentioned
in
subsection
(1)
or
(4),
as
the
case
may
be,
an
objection
or
appeal
would
have
been
made
or
taken
within
the
time
otherwise
limited
by
this
Act
for
so
doing,
(ii)
the
application
was
brought
as
soon
as
circumstances
permitted
it
to
be
brought,
and
(iii)
there
are
reasonable
grounds
for
objecting
to
or
appealing
from
the
assessment.
3.02
Analysis
The
original
assessment
was
made
on
April
8,
1980.
The
time
limit
for
filing
a
notice
of
objection
expired
on
July
7,
1980.
Because
of
paragraph
167(5)(a)
of
the
Act,
cited
above,
the
Board
can
only
have
jurisdiction
to
allow
the
application
if
the
said
application
was
filed
by
July
7,
1981
at
the
latest.
It
was
not
filed
until
June
16
[sic],
1982.
4.
Conclusion
As
the
Board
has
no
jurisdiction,
it
therefore
cannot
allow
the
application
for
a
time
extension.
However,
as
it
appears
that
the
objection
to
the
assessment
would
be
a
valid
one
if
it
had
been
filed
within
the
legal
time
limit,
the
Board
recommends
that
respondent
reassess
on
a
part
or
on
one
point.
Once
the
new
notice
of
assessment
has
been
issued,
appellant
can
then
file
a
notice
of
objection
within
the
permissible
time
limit
and
respondent
can
reassess.
If
this
recommendation
cannot
be
followed,
the
Board
recommends
that
section
17
of
the
Administration
Act
be
applied.
Application
dismissed.
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