31 August 1989 External T.I. ACC8405 F - Indian Statute-Barred Income Tax Assessment Remission Order

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.

                                     August 31, 1989

SUBJECT: Indian Statute-Barred Income Tax  Assessment Remission Order (P.C. 1989-740)

I am writing in response to your memorandum of August 21, 1989, concerning the subject remission order.

The purpose of the order is to remit income tax, penalties, and interest where the amount assessed, the penalty and the interest have not been paid as of April 28, 1989 and the statutory limitation period in respect of the assessment expired before 1988.  The effect is to cancel unpaid balances owing at December 31, 1983.

This remission was considered appropriate because of the uncertainty in the 1970's as to the taxation of Indians and many outstanding balances related to assessments which were arbitrary or incorrect in nature.  We recognize that it relieves taxpayers of their income tax debts and that no relief is provided forthose who had paid their debts.

Proper assessments which are still actively being pursued by taxpayers through the appeal process were not the intended beneficiaries of the order, however, we recognize that the order will be applicable to such taxpayers.  We would appreciate it if you could advise us of how many appeals are involved and thedollar amount involved.

B.W. DathDirectorSmall Business and General DivisionSpecialty Rulings DirectorateLegislative and Intergovernmental  Affairs Branch