Section 204.3

Subsection 204.3(1)

See Also

Chiang v. The Queen, 2017 TCC 165 (Informal Procedure)

inadvertent overcontributions

The taxpayer (Chiang) overcontributed to his RRSP (thereby incurring Part X.1 tax) because he “genuinely and reasonably believed” that he had deducted his contributions for two years in his returns for those years (but, in fact, did not enter the amounts in the deduction line) and that for a third year he had unused RRSP deduction room (which he did not). In finding that Chiang was not subject to penalties under s. 162(1) for not filing Part X.1 tax returns, Sommerfeldt J found that because

Mr. Chiang reasonably believed in, and was operating under, a mistaken set of facts that, if true, would have resulted in there not having been a cumulative excess amount…his failure to file tax returns (Form T1-OVP) for 2004 to 2013 resulted from a reasonable error of fact, so as to be excused by the due diligence defence.

Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 162 - Subsection 162(1) no penalty where reasonable error of fact 303

Subsection 204.3(2)

See Also

Hall v. The Queen, 2016 TCC 221 (Informal Procedure)

assessment of Pt I returns did not start Pt X.1 statute-barring period running

D’Auray J confirmed that as a T1-OVP form was a return made under a separate part of the Act (Part X.1), the assessment of timely filings of regular Part I returns of the taxpayer did not commence the running of the normal reassessment period respecting his required reporting of excess-RRSP contribution tax. Accordingly, the Minister was entitled to assess the tax in 2015 going back to the 2008 year.

Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 152 - Subsection 152(4) assessment of Part I tax returns does not engage the running of statute-barring for taxes under other Parts 145
Tax Topics - Income Tax Act - Section 204.1 - Subsection 204.1(4) waiver of tax of mentally ill taxyaer recommended 124