Bank of America – Federal Court of Appeal finds it reasonable of CRA to not extend an application deadline where the taxpayer failed to show due diligence

The Bank applied pursuant to ETA s. 141.02(19)(b)(ii) to CRA for an extension to the time for being able to apply to use a method for calculating its input tax credits (ITCs) that produced a better result than what it otherwise would have been entitled to.

In dismissing the Bank’s appeal from a finding of the Federal Court that CRA’s rejection of this request was fair and reasonable, Mactavish JA found, regarding CRA’s finding that the Bank had failed to exercise the requisite degree of care respecting its filing obligations that would be expected of a sophisticated taxpayer, that “the Bank has not shown any reversible error with respect to this factually suffused finding” and also noted that “this Court has already determined that it is reasonable for the Minister to have regard to the diligence of a taxpayer in circumstances such as this: Denso Manufacturing … 2021 FCA 236”.

Neal Armstrong. Summary of Bank of America v. Canada (Attorney General), 2025 FCA 9 under ETA s. 141.02(19)(b)(ii).