FOOi Inc. – Tax Court of Canada declines to treat a letter to CRA enclosing an SR&ED claim that CRA had lost as a de facto request for an extended period to object, and as an objection

The taxpayer, a CCPC, was found by MacPhee J to have filed its SR&ED claim for its taxation year ending on June 30, 2018 on a timely basis on December 20, 2019. However, CRA lost this filing and, on January 21, 2021, somewhat over a year from the date of initial assessment of the 2018 return, the taxpayer’s accountants wrote to the CRA SR&ED division, explained that no response had been received to the December 2019 SR&ED claim filing and provided a duplicate copy of the 2018 return along with the SR&ED claim. On March 8, 2021, CRA informed the taxpayer that the SR&ED expenditures claim was denied as it had been filed more than 12 months after the 2018 return was due.

The taxpayer submitted that the letter dated January 21, 2021 should be regarded as both an application for an extension of time with the Minister (as the 90-day period to file a notice of objection had elapsed) and a Notice of Objection. MacPhee J rejected these submissions as the letter was not sent to the Chief of Appeals, and it did not clearly indicate that it was intended as an application to extend time, or even as a notice of objection.

Neal Armstrong. Summary of FOOi Inc. v. The King, 2023 TCC 176 under s. 166.1(2).