Principal Issues: Whether the normal reassessment period with respect to a trust begins for Ontario provincial tax purposes with the sending of the federal notice of assessment or notification of no tax payable in a situation where the taxpayer reported nil income for the province of on Ontario.
Position: Yes.
Reasons: The provincial tax Acts for the provinces and territories with an agreement with the CRA to administer provincial tax have adopted certain provisions of the federal Income Tax Act, including the provisions of subsection 152(4) and 152(3.1) with respect to the normal reassessment period. If no permanent establishment and/or no income is reported in a particular province, the federal assessment constitutes a notification that there is no tax payable in all provincial or territorial jurisdictions administered by the CRA. In that regard, the normal reassessment period begins with the sending of the federal assessment for the Ontario provincial tax purposes. Where provincial income is nil, a notification of no tax payable of provincial tax is considered as part of the federal assessment.
