CRA acknowledges that where a contested notice of assessment is subject to a stay, it generally must apply to the bankruptcy court for lifting the stay
The Girardi decision (2014 QCCA 1922) stated, in connection with the Bankruptcy and Insolvency Act ("B.I.A."):
[I]f the CRA files a claim with the trustee, it may follow it up with a notice of assessment. However, since this notice of assessment constitutes a procedure for the collection of a provable claim, it will not have the legal effects conferred on it by the ITA, unless the CRA obtains the authorization of the court. In other words, if the CRA wishes the ITA's procedure for contesting a notice of assessment to apply, particularly as regards the time limit for contesting it, it must apply to the court and obtain the court's consent, in accordance with section 69.4 of the BIA.
CRA indicated that Girard does not call into question the validity under the ITA of an assessment, and instead deals with the procedures to be followed under the BIA when the CRA's proof of claim is contested by the trustee in bankruptcy. Accordingly, CRA will not seek court authorization where the trustee does not contest its proof of claim - or where the debtor (in a proposal) or the trustee (in a bankruptcy) does not intend to object to the assessment. Conversely:
In the event that a trustee contests the CRA's proof of claim, the legal effects of the notice of assessment, including the procedure for contesting the assessment and the time limits associated with it, are suspended until the CRA obtains the lifting of the suspension of proceedings under section 69.4 B.I.A., pursuant to the Girard decision.