Principales Questions: (1) How many years of outstanding forms T1134 and adjusted income tax returns must be included in a voluntary disclosure? (2) What are the time limitations for assessing a penalty with respect to outstanding forms T1134 and unreported FAPI? (3) Whether FAPLs or FACLs can be claimed in the computation of the foreign affiliate's FAPI?
Position Adoptée: (1) In the context of a voluntary disclosure, forms T1134 and adjusted income tax returns should be filed for all taxation years or reporting periods where there was previously inaccurate, incomplete or unreported information. (2) If the taxpayer is liable to a penalty under subsection 162(7), the assessment must be made within the normal reassessment period, pursuant to subsection 152(3.1), unless one of the exceptions provided for in subsection 152(4) applies. If the taxpayer is liable to a penalty under subsection 162(10) or (10.1) or 163(2.4), the penalty may be assessed at any time. A taxpayer who has unreported FAPI may be liable to a penalty under section 163, if the conditions stated herein are satisfied. Interest on late balance may also apply pursuant to section 161. (3) FAPLs and FACLs may be claimed in accordance with the provisions of subsection 95(1) (elements "F" and "F.1" of the formula in the definition of "FAPI") and sections 5903 and 5903.1 RIR.
Raisons: (1) Consistent with the VDP principles stated in IC00-1R4. (2) The penalties are assessed under Part I and are subject to the same limitations as any other assessment under that Part. (3) Application of subsection 95(1) (elements "F" and "F.1" of the formula in the definition of "FAPI") and sections 5903 and 5903.1 RIR and consistent with the technical notes related to such provisions.