27 November 2002 External T.I. 2002-0170185 - Reassessment of Corporation

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.

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CCRA.

Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ADRC.

Principal Issues: Request for reassessment of a corporate taxpayer after the expiry of the relevant normal reassessment period.

Position: Such a request should be directed to the relevant Tax Services Office. However, reassessment of a corporate taxpayer after the expiry of the relevant normal reassessment period can only be made under the circumstances specified in section 152 of the Act.

Reasons: Nature of the enquiry and a review of the relevant provisions of the Act. In particular, an application under subsection 152(4.2) of the Act is not available in the case of a taxpayer that is a corporation.

2002-017018
XXXXXXXXXX A.A. Cameron
(613) 347-1361
November 27, 2002

Dear XXXXXXXXXX:

Re: XXXXXXXXXX

We are writing further to your letter of October 17, 2002 wherein you requested that the Canada Customs and Revenue Agency (the "CCRA") accept a request from the above corporation that its "1997 corporate T2 be adjusted to permit a logging tax credit" in circumstances where the request was made "after the federal T2 was statute barred".

Requests regarding the reassessment of a return of income should be directed to the Tax Services Office that provides service to the taxpayer in question. However, we can provide the following general comments.

The rules relating to the assessment or reassessment of a taxpayer's return of income for a taxation year are contained in section 152 of the Income Tax Act (the "Act"). Pursuant to section 152 of the Act, the CCRA may only reassess after a taxpayer's "normal reassessment period" (as defined in subsection 152(3.1) of the Act) in respect of a particular taxation year in certain situations specified in that section. For example, where certain misrepresentation or fraud is present; the taxpayer has filed a waiver in prescribed form with the CCRA within the relevant normal reassessment period; or before the day that is 3 years after the end of the relevant normal reassessment period in certain situations specified in paragraph 152(4)(b) of the Act.

In addition, a reassessment may be made by the CCRA after the normal reassessment period for a taxpayer who is an individual (other than a trust) or a testamentary trust where application has been made by such taxpayer under subsection 152(4.2) of the Act.

A taxpayer which is a corporation is unable to make application under subsection 152(4.2) of the Act and would have to fall within one of the situations specifically otherwise provided for in section 152 of the Act in order for the CCRA to be permitted to reassess after the corporation's normal reassessment period in respect of a particular taxation year. Since none of these exceptions appear to apply to your client, there is no provision in the Act that would allow the CCRA to reassess.

Please contact the writer if you have further questions regarding this matter.

Yours truly,

for Director
Reorganizations and Resources Division
Income Tax Rulings Directorate
Policy and Legislation Branch
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