CRA finds that the Part I limitation period rules apply to foreign information reporting penalties

Although foreign asset reporting occurs under information returns required under a separate Part of the Act (Part XV), CRA considers that the statute-barring rules in s. 152(4) for Part I of the Act apply to penalties applicable to delinquent filings of these returns - presumably because these penalties are imposed under a Part I section (s. 162).  An implication is that, provided the taxpayer has filed a Part I return and been assessed so that the applicable limitation period (as potentially extended under draft s. 152(4)(b.2)) starts running, the imposition of a penalty respecting, for example, a T1135 information return ultimately can become statute-barred even if the information return is not filed at all.  This contrasts, for example, with a Part VI.1 tax reporting obligation, which will never become statute-barred if a Part VI.1 tax return is never filed (see s. 191.4(2)).

Neal Armstrong.  Summaries of 12 December 2013 Memo 2013-0497231I7 under s. 152(4)(a), s. 162(7), s. 162(10) and s. 162(10.1).