Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
Principal Issues: Is the normal reassessment period 3 years from the first assessment issued for that year or from the most recent assessment for that year
Position: Original Assessment is the first assessment issued for the year
Reasons: The normal reassessment period begins to run from the time that is the earlier of the day of mailing of an original assessment and the day of mailing of a notification that no tax is payable.
XXXXXXXXXX 2000- 000014
C. Tremblay
Attention: XXXXXXXXXX
March 13, 2000
Dear Sir:
Re: Normal Reassessment Period
This is in reply to your letter of January 3, 2000, wherein you requested us to clarify whether or not the "normal reassessment period" as defined in subsection 152(3.1) of the Income Tax Act (the "Act') is calculated from the first Notice of Assessment or the Notice of Reassessment in the following situation.
Assuming that none of the exceptions in subsections 152(4) and (6) of the Act apply
1. An individual files a 1999 income tax return on March 31, 2000 and the Canada Customs and Revenue Agency (the "Agency") issues a Notice of Assessment on April 20, 2000.
2. In May of 2000, the taxpayer determines that relevant information was not provided for the return and provides this information.
3. The Agency utilizes this information and issues a Notice of Reassessment on August 1, 2000.
You ask whether the "normal reassessment period" for the 1999 return ends on April 20, 2003 or August 1, 2003?
Under subsection 152(4) of the Act, the Minister may not ordinarily reassess after the "normal reassessment period" as defined in subsection 152(3.1) of the Act. For most taxpayers, that period is three years beginning after the earlier of the day of mailing of
a notice of an original assessment for the year and the mailing of an original notification that no tax is payable for the year unless the taxpayer has made misrepresentations, committed a fraud or filed a waiver. Where a Notice of Reassessment is issued at a later date, the first assessment notice is still viewed as the original assessment for the purposes of determining the "normal reassessment period" under subsection 152(3.1) of the Act. Accordingly, in the situation described above, the normal reassessment period for the individual's 1999 taxation year ends on April 20, 2003.
We trust that these comments will be of assistance.
Yours truly,
Jim Wilson
for Director
Business and Publications Division
Income Tax Rulings Directorate
Policy and Legislation Branch
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