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.
Principal Issues: Whether the extension to file 2013 T1 Returns that was granted following the Heartbleed event would change the deadline to file a notice of objection in relation to a 2013 T1 return?
Position: No.
Reasons: The phrase "filing-due date" is specifically defined in subsection 248(1) of the Act as the day on or before which the taxpayer's return of income under Part I for the year is required to be filed or would be required to be filed if tax under that Part were payable by the taxpayer for the year.
Subsection 220(3) gives the Minister the discretion to extend the time for making a return under the Act. Such an extension could enable a person to avoid or reduce an assessment of interest and penalties. However, subsection 220(3) does not change the original "filing-due date", and as such, the time to serve a notice of objection remains the later of (i) the day that is one year after the taxpayer's filing-due date for the year and (ii) the day that is 90 days after the day of sending the notice of assessment.
June 18, 2014
Yves Thivierge, HEADQUARTERS
Field Support Section, Income Tax Rulings
Telephone Programs Division, Directorate
Taxpayer Services and Debt Management Branch Andrew Deak
2014-053159
Heartbleed Event deadline for filing a notice of objection for a 2013 T1 return
We are replying to your email of May 14, 2014, in which you asked for our views on whether the extension to file 2013 T1 returns that was granted following the Heartbleed event would change the deadline to file a notice of objection in relation to a 2013 T1 return.
As described on the CRA website, the Heartbleed bug is a security vulnerability that has been found in the software that many sites around the world use, such as social media sites, company websites and commerce sites, to encrypt your user name, password and/or financial information when you log into "secure" websites. This software is called OpenSSL. This bug has the potential to expose private data. The CRA uses OpenSSL to authenticate users of its e-services.
As a precautionary measure, the CRA temporarily shut down all electronic systems, including My Account, My Business Account, Represent a Client, EFILE and NETFILE until its systems could be brought back online safely and securely.
Recognizing that the service interruption lasted five days, the Minister of National Revenue announced that interest and penalties will not be applied to individual taxpayers filing their 2013 tax returns after April 30, 2014 for a period equal to the length of this service interruption. This means individual tax returns for 2013 filed on or before May 5, 2014 will not incur interest or penalties.
Subparagraph 150(1)(d)(i) provides that most individuals must file a return with the Minister on or before the following April 30. Paragraph 165(1)(a) provides that a taxpayer who objects to an assessment under Part I may serve on the Minister a Notice of Objection on or before the later of (i) the day that is one year after the taxpayer's filing-due date for the year and (ii) the day that is 90 days after the day of sending the notice of assessment. The phrase "filing-due date" is specifically defined in subsection 248(1) of the Act as the day on or before which the taxpayer's return of income under Part I for the year is required to be filed or would be required to be filed if tax under that Part were payable by the taxpayer for the year.
Subsection 220(3) gives the Minister the discretion to extend the time for making a return under the Act. Such an extension could enable a person to avoid or reduce an assessment of interest and penalties. However, subsection 220(3) does not change the original "filing-due date", and as such, the time to serve a notice of objection remains the later of (i) the day that is one year after the taxpayer's filing-due date for the year and (ii) the day that is 90 days after the day of sending the notice of assessment. Therefore, for most individuals, the deadline for filing a notice of objection for their 2013 T1 return is the later of April 30, 2015, and 90 days after the date of sending the Notice of Assessment.
We have confirmed that the above interpretation is shared by the Appeals Branch.
We trust that this information is helpful. If you have any questions regarding the above, please do not hesitate to contact us.
Terry Young, CPA, CA
Manager, Administrative Law Section
International Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch
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