CRA finds that s. 143.2(15) authorized it to open-up a statute-barred year to deny the carryback of a loss which it will deny under s. 143.2

An individual's 2019 taxation year will be reassessed under s. 143.2 to deny a loss, which he had carried back to his 2016 year, on the basis that it resulted from abusive tax planning representing a tax shelter investment.

S. 143.2(15) provides that, notwithstanding ss. 152(4) to (5), “such assessments … may be made as are necessary to give effect to this section.” In finding that, by virtue of s. 143.2(15), the individual’s 2016 taxation year could be reassessed beyond the normal reassessment period to deny the carried-back loss, the Directorate stated that “such carryback is closely linked to an adjustment in connection with a tax shelter investment and is necessary and required for the purposes of section 143.2.”

Neal Armstrong. Summary of 18 June 2024 Internal T.I. 2024-1006551I7 F under s. 143.2(15).