CRA summarizes its policy for one-time acceptance of a late-filed s. 216 return

CRA indicated that it has a policy allowing non-residents a one-time opportunity to late-file their s. 216 returns and have them treated as though they were filed on time (so as to be taxed on a net basis). A late-filed s. 216 return will not be accepted under this policy where CRA: has already advised the taxpayer of its responsibilities under Part XIII regarding the Canadian rental income; has already initiated action because of the failure to comply with Part XIII; or has approved Form NR6.

Where a taxpayer is not eligible for relief under this policy, it may be possible to get an extension, regarding a s. 216 return, where the taxpayer can sufficiently demonstrate that circumstances of an extraordinary manner existed.

Neal Armstrong. Summary of 20 June 2023 STEP Roundtable, Q.11 under s. 216(1).