Bonnybrook – Federal Court of Appeal finds that CRA has the discretion to extend the three-year deadline for applying for a dividend refund

CRA has had a longstanding view (e.g., in 2013-0499421I7) that s. 220(3) does not accord it the discretion to extend the limitation in s. 129(1) prohibiting a claim for a dividend refund in a return that is filed more than three years late. Woods JA has found that this position is incorrect, stating:

The CRA’s view … is that the taxpayer relief provisions cannot affect a filing requirement which restricts the issuance of a dividend refund. The problem with this reasoning is that this is exactly what the taxpayer relief provisions are intended to do — enable the Minister to provide relief from strict filing requirements. ...

Subsection 220(3) of the Act provides the Minister with a broad discretion to extend the time to file a “return”.

Neal Armstrong. Summaries of Bonnybrook Industrial Park Development Co. Ltd. v. Canada (National Revenue), 2018 FCA 136 under s. 220(3) and s. 220(2.1).