Vachon – Federal Court of Appeal finds that carelessness to open up a statute-barred year must relate to the return filing

Carelessness which justifies opening up an otherwise statute-barred taxation year must be carelessness at the time of filing the return. Accordingly, Scott JA annulled a decision of Tardif J that opened up a year on the basis of the taxpayer’s failure to follow up when he received demands from CRA relating to already-filed returns (which may have been altered by his accountant without his authorization before filing).

This is consistent with the mooted proposition (see also 2005-011324) that there is no obligation to amend a return when an innocent error is subsequently discovered.

Neal Armstrong. Summary of Vachon v. The Queen, 2014 CAF 224 under s. 152(4)(a)(i).