Cases
Canada v. 984274 Alberta Inc., 2020 FCA 125
In finding that a nil assessment was valid for s. 164(1) purposes notwithstanding that it had been issued (in 2010) more than three years after...
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| Tax Topics - Income Tax Act - Section 160.1 - Subsection 160.1(1) | ss. 160.1(1) and (3)’s application not subject to the issuance of a prior time-constrained reassessment | 489 |
| Tax Topics - Income Tax Act - Section 164 - Subsection 164(1) | nil assessment was an “assessment” giving rise to an s. 164(3.1) overpayment | 445 |
| Tax Topics - General Concepts - Stare Decisis | prior decision of the FCA that “manifestly overlooked [the] established line of cases” was not to be followed | 76 |
9027-4218 Québec Inc. v. Canada (National Revenue), 2019 FC 785
The two affiliated plaintiffs (9027 and 3097) received $8.7 million in expropriation proceeds in their 2012 taxation years for the expropriation...
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| Tax Topics - Other Legislation/Constitution - Federal - Federal Courts Act - Subsection 18(12) | determination not to reassess was a reviewable decision that started the 30-day period | 255 |
6075240 Canada Inc. v. Canada (National Revenue), 2019 FC 642
The Minister made arbitrary assessments of the taxpayer following its failure to file returns for its 2010 to 2012 years. More than three years...
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| Tax Topics - Income Tax Act - Section 152 - Subsection 152(3.1) - Paragraph 152(3.1)(b) | s. 152(3.1), unlike its Quebec equivalent, does not give a taxpayer longer to respond to an arbitrary assessment than a normal assessment | 176 |
Mammone v. Canada, 2019 FCA 45
In June 2009, the taxpayer transferred the commuted value of his current (OMERS) pension to a new pension plan of a number company 1723586 Ontario...
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| Tax Topics - Income Tax Act - Section 152 - Subsection 152(9) | s. 152(9) did not permit CRA to change the factual basis for its reassessment beyond the normal reassessment period | 391 |
Canada v. Gray, 2008 DTC 6641, 2008 FCA 284
The Tax Court quashed a reassessment of the taxpayer made less than three years after an alleged initial assessment of the taxpayer, on the basis...
Ludmer v. The Queen, 95 DTC 5311, [1996] 3 CTC 74 (FCA)
The taxpayer pleaded that the Minister's decision to allow an interest deduction for taxation years of the taxpayer prior to 1981 constituted an...
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| Tax Topics - General Concepts - Estoppel | 134 | |
| Tax Topics - Statutory Interpretation - Interpretation Bulletins, etc. | 45 | |
| Tax Topics - Statutory Interpretation - Interpretation Bulletins, etc. | 63 |
The Queen v. Regina Shoppers Mall Ltd., 91 DTC 5101, [1991] 1 CTC 297 (FCA)
The Minister submitted that s. 152(8) prohibited the taxpayer from (indirectly) challenging the validity of a reassessment by the Minister of its...
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| Tax Topics - Income Tax Act - Section 152 - Subsection 152(8) | 124 |
Optical Recording Corp. v. The Queen, 86 DTC 6465, [1986] 2 CTC 325 (FCTD), aff'd 87 DTC 5248, [1987] 1 CTC 417
A purported assessment which merely indicated that the taxpayer was "technically liable" to pay an amount, but that Revenue Canada would not take...
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| Tax Topics - General Concepts - Estoppel | 103 | |
| Tax Topics - Income Tax Act - Section 195 - Subsection 195(2) | 31 |
Hadler Turkey Farms Inc. v. The Queen, 86 DTC 6013, [1986] 1 CTC 81 (FCTD)
The taxpayer was reassessed for its 1973 to 1975 taxation years after computing its farming income in accordance with the accrual method. The...
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| Tax Topics - Income Tax Act - Section 28 - Subsection 28(1) | can't change to cash method for particular year once accrual return filed | 51 |
Abrahams [No. 1] v. MNR, 66 DTC 5451, [1966] CTC 690 (Ex Ct)
The Minister made a further reassessment of the taxpayer after the taxpayer had objected and appealed to the Exchequer Court from a previous...
See Also
Grenon v. The Queen, 2021 TCC 30
The taxpayer’s RRSP invested in units of units trusts (the “Income Funds”) which Smith J found were not qualified investments for RRSPs,...
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| Tax Topics - Income Tax Regulations - Regulation 4801 - Paragraph 4801(a) - Subparagraph 4801(a)(i) - Clause 4801(a)(i)(A) | distribution of units that included significant purchases by minors and by adults who did not pay for their own units, was unlawful | 755 |
| Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) | purported establishment of “alter ego” MFTs through which an RRSP could invest in operating businesses was an abuse engaging GAAR | 605 |
| Tax Topics - Income Tax Act - Section 204.2 - Subsection 204.2(1.1) | alleged distribution from non-qualified investment was not an over-contribution | 277 |
| Tax Topics - General Concepts - Window Dressing | window-dressing is a deception about intention | 312 |
| Tax Topics - Income Tax Act - Section 207.1 - Subsection 207.1(1) | non-qualified investments not “included” in annuitant’s income because it was never assessed | 346 |
| Tax Topics - Income Tax Act - Section 207.2 - Subsection 207.2(3) | CRA’s assessment of Pt. XI.1 shown on the T3GR for all RRSPs of one type did not start the normal reassessment period for the taxpayer’s RRSP since no tax shown for it | 370 |
| Tax Topics - Income Tax Regulations - Regulation 4900 - Subsection 4900(1) - Paragraph 4900(1)(d.2) | distribution was not lawful because the issuer had not complied with the OM exemption, which was the exemption that it had chosen to rely on | 291 |
3295036 Canada Inc. v. Agence du revenu du Québec, 2020 QCCA 1435
In October 1996, a Quebec-taxpayer company (“329”) acquired public company shares from its parent. The parent realized no gain because federal...
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| Tax Topics - Income Tax Act - Section 248 - Subsection 248(10) | the use, in sales years later, of ACB that was stepped up in a “Quebec shuffle,” occurred as part of the same series | 240 |
Mammone v. The Queen, 2018 TCC 24, rev'd 2019 FCA 45
The taxpayer was a member of the Ontario Municipal Employees Retirement System (“OMERS”) pension plan. On January 1, 2009, 1723586 Ontario...
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| Tax Topics - Income Tax Act - Section 152 - Subsection 152(9) | subsequent retroactive deregistration of RPP also retroactively validated an assessment factually made on basis of plan’s invalidity | 216 |
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(4) - Paragraph 152(4)(a) - Subparagraph 152(4)(a)(i) | subsequent retroactive deregistration of RPP would not establish carelessness in previous return filing | 197 |
| Tax Topics - General Concepts - Effective Date | subsequent deregistration of RPP retroactively validated reassessment | 239 |
| Tax Topics - Income Tax Act - Section 147.1 - Subsection 147.1(12) | subsequent deregistration of RPP beyond normal reassessment period nonetheless retroactively validated reassessment | 95 |
| Tax Topics - Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(a) - Subparagraph 56(1)(a)(i) | valid assessment for transfer to an RPP that was retroactively deregistered | 85 |
Aubrey Dan Family Trust v. Minister of Finance, 2016 ONSC 3801, aff'd 2017 ONCA 875
In 2011, and shortly before the third anniversary of the original assessment in 2008 of the taxpayer’s 2007 federal and Alberta return, the...
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| Tax Topics - Other Legislation/Constitution - Ontario - Taxation Act 2007 - Section 158 | federal form with CRA insignia purported to be a prescribed form | 364 |
| Tax Topics - Income Tax Act - Section 244 - Subsection 244(16) | form bearing CRA insignia purported to be prescribed form | 78 |
Hall v. The Queen, 2016 TCC 221 (Informal Procedure)
The taxpayer had $12,029 of excess contributions in his RRSP since the end of 2008. He failed to file a Return for RRSP Excess Contributions...
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| Tax Topics - Income Tax Act - Section 204.1 - Subsection 204.1(4) | waiver of tax of mentally ill taxyaer recommended | 124 |
| Tax Topics - Income Tax Act - Section 204.3 - Subsection 204.3(2) | assessment of Pt I returns did not start Pt X.1 statute-barring period running | 71 |
684761 B.C. Ltd. v. The Queen, 2015 DTC 1228 [at 1507], 2015 TCC 288
The Minister reassessed the taxpayer’s 2008 year within the normal reassessment period, and then issued a “Notice of Additional Assessment”...
Klemen v. The Queen, 2014 DTC 1170 [at 3613], 2014 TCC 244
The Minister assessed the taxpayer for his 2004 taxation year within the normal reassessment period on the basis that the taxpayer had realized a...
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| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Commercial Activity | equipment licensed at no charge was held in commercial activity | 86 |
| Tax Topics - Income Tax Act - Section 165 - Subsection 165(5) | s. 165(5) cannot be used to increase an assessment | 161 |
| Tax Topics - Income Tax Act - Section 9 - Capital Gain vs. Profit - Machinery and Equipment | licensed equipment internally transferred in one-off transaction | 184 |
Fio Corporation v. The Queen, 2014 TCC 58
The taxpayer was reassessed for its 2007 and 2008 taxation years, appealed to the Tax Court and then was further reassessed based on documents...
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| Tax Topics - Income Tax Act - Section 171 - Subsection 171(1) | inherent jurisdiction to void reassessments which breach undertaking | 149 |
| Tax Topics - Income Tax Act - Section 241 | s. 241 does not override implied undertaking rule | 153 |
| Tax Topics - Other Legislation/Constitution - Federal - Tax Court of Canada Act - Section 17.2 | time of commencement of appeal | 150 |
Nottawasaga Inn Ltd. v. The Queen, 2014 DTC 1021 [at 2628], 2013 TCC 377 (Informal Procedure)
In 2011 the Minister reassessed the taxpayer's 2007 taxation year (the old reassessment) by denying the deduction of various expenses and capital...
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| Tax Topics - Income Tax Act - Section 169 | 315 |
Yazdani v. The Queen, 2012 DTC 1303 [at 3983], 2012 TCC 371 (Informal Procedure)
The taxpayer invested money with a rogue (operating a business under the name "Regions"), and ultimately recovered only $6950 of his $31,000...
Blackburn Radio Inc. v. The Queen, 2012 DTC 1213 [at 3580], 2012 TCC 255
Woods J. found that a reassessment made beyond the limitations period is void rather than voidable. Therefore, the taxpayer was under no duty to...
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| Tax Topics - Income Tax Act - Section 152 - Subsection 152(4.3) | no further reassessment permitted if order to vacate or vary | 298 |
| Tax Topics - Income Tax Act - Section 171 - Subsection 171(1) | no further reassessment permitted if order to vacate or vary | 183 |
Orlando Corp. v. The Queen, 94 DTC 1046, [1994] 1 CTC 2113 (TCC)
The taxpayer received a notice of assessment for Part IV tax which also showed no Part I tax as being payable and subsequently issued further...
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| Tax Topics - Income Tax Act - Section 10 - Subsection 10(1) | 38 |
Administrative Policy
25 January 2024 Internal T.I. 2023-0973901I7 - Loss carryback and 152(4)(b)(ii)
The initial assessment of a particular year of the taxpayer resulted in an amount of tax payable, which remained unpaid, so that interest accrued...
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| Tax Topics - Income Tax Act - Section 161 - Subsection 161(1) | accepting an amended return so as to replace an inventory gain by a capital gain and eliminate a loss carryback would eliminate the interest that had accrued on the initial assessment | 291 |
24 September 2020 Internal T.I. 2020-0841041I7 - Normal reassessment period - provincial tax
May a reassessment of Ontario provincial tax be made beyond the normal reassessment period where a trust that, in fact, was resident in Ontario...
15 September 2020 IFA Roundtable Q. 4, 2020-0853391C6 - IFA 2020 Q4: Impact Covid-19 on CRA procedures
Bill C-20 (re domestic time limits) does not apply to treaty time limits. If there is none, the usual domestic limits apply, e.g., under s. 152,...
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| Tax Topics - Treaties - Income Tax Conventions - Article 26 | COVID-19 has not changed Treaty time limitations | 155 |
1 August 2019 Internal T.I. 2018-0781951I7 - Employee benefit plan and recharge agreement
Employees of a Canadian subsidiary participated in a performance share plan (“PSP”) under which the non-resident public parent (Parentco)...
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| Tax Topics - Income Tax Act - Section 7 - Subsection 7(3) - Paragraph 7(3)(b) | no s. 7(3)(b) prohibition where at employer’s option to settle PSPs in cash or in shares | 250 |
| Tax Topics - Income Tax Act - Section 7 - Subsection 7(1) - Paragraph 7(1)(a) | s. 7 rules do not apply to shares purchased through a trust | 180 |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Employee Benefit Plan | custodial PSP arrangement was an EBP | 190 |
| Tax Topics - Income Tax Act - Section 32.1 - Subsection 32.1(1) | payments made by Canco to parent for the value of parent shares distributed by parent-funded EBP to Canco employees were not deductible under s. 32.1 | 269 |
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose | recharge payments made for employees participating in parent-administered PSP not deductible to extent they were employed by affiliates during vesting period | 241 |
5 October 2018 APFF Roundtable Q. 15, 2018-0768861C6 F - Share exchange and statute of limitation
In the 2017 taxation year, an individual effects a s. 85 share-exchange rollover transaction (with a timely election filing and reporting of the...
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| Tax Topics - General Concepts - Effective Date | retroactive ACB adjustment under PAC to statute-barred transaction may be taken into account in a current relevant transaction | 59 |
17 April 2018 Internal T.I. 2018-0739141I7 - Amending a statute barred partnership return
The partnership with three principal partners (Partners 1, 2 and 3, all corporations) filed an amended T5013, requesting an increase in capital...
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| Tax Topics - Income Tax Act - Section 152 - Subsection 152(1.4) | CRA can treat a late request for a T5013 amendment (which cannot be dealt with under s. 152(1.4)) as a request to assess the partner returns directly | 338 |
S3-F4-C1 - General Discussion of Capital Cost Allowance
UCC adjustment for 1st non-statute barred year
1.113 It may be necessary to revise the capital cost of a depreciable property acquired during a...
29 July 2015 Internal T.I. 2015-0575921I7 - Recapture arising in statute-barred years
If, as a result of the erroneous inclusion of acquired property (e.g., property which was not acquired for an income-producing purpose) in a class...
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| Tax Topics - Income Tax Act - Section 13 - Subsection 13(1) | negative UCC balance arising in statute-barred year becomes recapture in 1st open year | 460 |
| Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Undepreciated Capital Cost - E | negative UCC balance arising in statute-barred year becomes recapture in 1st open year | 251 |
15 September 2015 Internal T.I. 2015-0572771I7 - T1135 - Normal Reassessment Period
Is the normal reassessment period for a T1135 considered separately from that of the return of income to which it relates? CRA stated:
[A]n...
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| Tax Topics - Income Tax Act - Section 162 - Subsection 162(7) | unlike s. 216 returns, the assessment of s. 162(7) penalties is subject to the same normal reassessment period as for the Part I return | 97 |
18 November 2014 TEI Roundtable, 2014-0550381C6 - 2014 TEI Liaison Meeting, Q.E2 - Capital Cost Allowance (CCA) Claimed under Paragraph 20(1)(a)
Are the guidelines outlined in IC 84-1 still valid, and would CRA's practice differ if a request for revision of CCA were made respecting a...
14 April 2014 External T.I. 2014-0521341E5 - Unclaimed interest expense
When a taxpayer wishes to claim an interest deduction for a previous taxation year in respect of which a return has already been filed, the...
7 February 2014 Internal T.I. 2013-0512601I7 - Clarification of 2013-0481151I7
In "clarifying" 2013-0481151I7, CRA stated:
In that letter, we stated that an addition to income under section 110.5… is a permissive amount in...
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| Tax Topics - Income Tax Act - 101-110 - Section 110.5 | 110.5 addition not a permissible 84-1 adjustment | 125 |
11 October 2013 Internal T.I. 2013-0475761I7 - Deadline for filing a waiver of tax credit – ORDTC
A corporation filed its original 2011 T2 return somewhat after the filing due date, and then requested an adjustment to amend the return by...
12 December 2013 Internal T.I. 2013-0497231I7 - Penalties on Foreign Asset Reporting
What are the time limitations for assessing a penalty on foreign asset reporting? Before discussing particular penalties, CRA noted:
[I]f the...
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| Tax Topics - Income Tax Act - Section 162 - Subsection 162(10.1) | normal reassessment period does not apply | 58 |
| Tax Topics - Income Tax Act - Section 162 - Subsection 162(10) | normal reassessment period does not apply | 138 |
| Tax Topics - Income Tax Act - Section 162 - Subsection 162(7) | s. 152(4)(a) applies to Part XV returns | 83 |
16 July 2013 Internal T.I. 2013-0481151I7 - Application of 152(4)(b)(iv) and 110.5
Respecting whether an addition to income under s. 110.5 is considered a permissive amount for purposes of IC 84-1, so that the Minister may allow...
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| Tax Topics - Income Tax Act - 101-110 - Section 110.5 | extended s. 152(4)(b)(iv) period/IC 84-1 | 217 |
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(4) - Paragraph 152(4)(b) - Subparagraph 152(4)(b)(iv) | 217 |
25 March 2013 Internal T.I. 2013-0474111I7 - Amendment to Prior Years' CCA
The taxpayer wished to restore non-capital losses which had expired by reversing capital cost allowance claims for statute-barred years ending...
11 December 2012 Internal T.I. 2012-0459341I7 - Adjustments Beyond Normal Reassessment Period
The taxpayer had deducted non-capital losses from prior years to reduce taxable income to nil for the 2003 to 2008 taxation years. The taxpayer...
7 January 2011 Internal T.I. 2010-0387011I7 F - DPA dans une année prescrite
CRA reassessed Opco to deny an investment tax credit claimed for Year 1, which was permitted based on a misrepresentation attributable to...
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| Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(a) - Revising Claims | CCA claims could not be increased in “open” year to generate loss for carryback to year CRA had reassessed outside the normal reassessment period | 202 |
6 March 2002 Internal T.I. 2001-0108587 F - AIDE A DOMICILE DE LA SAAQ
Regarding requests for refunds based on a favourable judgment rendered to another taxpayer, the Directorate stated:
Paragraph 4(e) of Information...
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| Tax Topics - Income Tax Act - Section 3 - Paragraph 3(a) | in cases similar to Maurice, parent caregivers may be exempted on compensation received | 74 |
6 September 2001 Internal T.I. 2001-0094327 F - DEMANDE DE CONTRIBUABLE
After 65302 was decided, the Corporation revised its income and taxable income computation for a taxation year (Year 1) that was before the normal...
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| Tax Topics - Income Tax Act - Section 111 - Subsection 111(8) - Non-Capital Loss | non-capital loss could be recomputed for a prior year which had not been assessed | 373 |
| Tax Topics - Income Tax Act - 101-110 - Section 110.1 - Subsection 110.1(1.1) | donation previously claimed in a prior year but no longer needed in that year could not be re-claimed in a subsequent year | 60 |
| Tax Topics - Income Tax Act - Section 164 - Subsection 164(6.1) | s. 164(6.1) inapplicable to amendment to non-capital loss for a prior year consequent on a favourable court decision | 60 |
| Tax Topics - Income Tax Act - Section 111 - Subsection 111(3) - Paragraph 111(3)(a) | s. 111(3)(a) precluded the application of a non-capital loss that had previously been claimed for a prior year even though there no longer was taxable income in that prior year | 159 |
19 June 2001 Internal T.I. 2000-0053887 F - STATUTE-BARRED YEARS - GST CREDIT
For the 1995 to 1999 taxation years, Mr. A declared social assistance benefits as his source of income and his taxable income was nil. He now has...
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| Tax Topics - Income Tax Act - Section 122.5 - Subsection 122.5(3) | a taxpayer’s non-capital loss claimed for a statute-barred year eliminated his GSTC for that year, without repayment thereof being required | 48 |
31 October 1994 Internal T.I. 9412337 - REASSESSMENT OF STATUTE BARRED RETURN
"Where the original notice of 'nil' assessment is statute-barred, the Department is still entitled to revise the loss as long as it does not...
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| Tax Topics - Income Tax Act - Section 152 - Subsection 152(3.1) | 37 |
28 February 1991 T.I. 8621-4
"We concur that a notification that no tax is payable (also known as a nil assessment) does constitute an assessment to identify the date from...
88 C.R. - Q.77
Where a taxpayer has sustained a non-capital loss in a taxation year, that non-capital loss can be reviewed in any of the taxation years referred...
84 C.R. - Q.88
Where the taxpayer wishes to deduct an additional amount that he had omitted to claim for a particular loss year, then the additional deduction...
IC 84-1 "Revision of Capital Cost Allowance Claims and Other Permissive Deductions"
10. Where a taxpayer requests a revision of capital cost allowance claimed in a taxation year for which a notification that no tax is payable had...
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| Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(a) - Revising Claims | CCA claim can be revised where no notice of loss determination if no change in taxes payable | 160 |
79 C.R. - Q.14
Where the taxpayer has refused to provide a waiver, then RC will reassess to protect its interests, and in an amount which may be greater than...
IC75-7R3 Reassessment of a Return of Income
4. A reassessment to create a refund ordinarily will be made upon receipt of a written request by the taxpayer, even if a notice of objection has...
Finance
3 September 2019 Comfort Letter - Deductibility of Mining Taxes
The Mining Association of Canada suggested that it was inappropriate for taxpayers, who had been provincially reassessed for additional mining...
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| Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(v) | removal of statute-barring where increase in mining taxes that otherwise would be deductible under s. 20(1)(v) | 174 |
Articles
Beith, "Fairness Package", 1992 Conference Report, c.7.
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| Tax Topics - Income Tax Act - Section 220 - Subsection 220(3.1) | 0 |
Paragraph 152(4)(a)
Subparagraph 152(4)(a)(i)
Cases
TPine Leasing Capital Corporation v. Canada, 2024 FCA 83
The original Crown Reply had stated that the Minister had assessed the 2015 return of the taxpayer (TPine) to disallow a deduction for capital...
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| Tax Topics - Income Tax Act - Section 152 - Subsection 152(9) | it is unclear whether revised s. 152(9) precludes CRA from advancing a further argument based on a different transaction | 447 |
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(1) | CRA must assess “in accordance with the facts and the law” | 67 |
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(5) | new basis for assessment cannot increase tax | 32 |
Freedman v. Canada, 2023 FCA 81
On April 1, 2006, some executives of Gluskin Sheff+Associates Inc. sold a portion of their shares to family trusts at a price that was...
Peach v. Canada, 2022 FCA 163
The Tax Court found that the Minister was entitled to reassess the taxpayer beyond the normal reassessment period given that the taxpayer “had...
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| Tax Topics - Income Tax Act - Section 3 - Paragraph 3(a) - Business Source/Reasonable Expectation of Profit | rental to sons at below-FMV rent had a personal element, and did not satisfy the Stewart source test | 120 |
| Tax Topics - Income Tax Act - Section 67 | distinction between not challenging a taxpayer’s business acumen and measuring against the standard of what a reasonable business person would have done | 161 |
Canada v. Paletta, 2022 FCA 86
After finding that the taxpayer’s activity of FX straddle trading, which had the appearance of commerciality but was not engaged in for profit,...
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| Tax Topics - Income Tax Act - Section 3 - Paragraph 3(a) - Business Source/Reasonable Expectation of Profit | straddle trading, with an appearance of commerciality but not engaged in for profit, was not a business | 521 |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Business | common law concept of business informs the s. 248(1) definition | 161 |
| Tax Topics - Income Tax Act - Section 163 - Subsection 163(2) | informal consultations with tax lawyers without formal opinion did not avoid gross negligence penalties | 303 |
Deyab v. Canada, 2020 FCA 222
The taxpayer was assessed for approximately $2.4 million in shareholder benefits respecting amounts received by him over five years from his...
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| Tax Topics - Income Tax Act - Section 163 - Subsection 163(2) | although the taxpayer had been negligent, conduct verging on intentional acting not established | 338 |
| Tax Topics - General Concepts - Evidence | adverse inference drawn from failure to call bookkeeping evidence after prima facie case made out against the taxpayer | 331 |
Revera Long Term Care Inc. v. Canada (National Revenue), 2019 FC 239
The appellant (Revera LTC), was a taxable entity which operated nursing and retirement homes, and was owned by a corporation (Revera Inc.) that...
Ludmer v. Attorney General of Canada, 2018 QCCS 3381, aff'd 2020 QCCA 697
Two of the taxpayers (“Ludmer” and Steinberg”) were invested along with family, friends and acquaintances (all resident in Canada) in a BVI...
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| Tax Topics - Income Tax Act - Section 56 - Subsection 56(2) | recurring fee reduction amounts received for no work were income and taxable under s. 56(2) when directed to controlled company | 289 |
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(1) | improper advancing of “settlement” elements that were not sustainable | 45 |
| Tax Topics - Income Tax Act - Section 94.1 - Subsection 94.1(1) | equity-linked notes held in BVI company were portfolio investments held with a tax avoidance purpose, but were not subject to 7000(2)(d) interest accrual | 576 |
| Tax Topics - Income Tax Regulations - Regulation 7000 - Subsection 7000(2) - Paragraph 7000(2)(d) | mere possibility of locking in value accretion each year did not crystallize the maximum amount of interest respecting the year | 484 |
| Tax Topics - General Concepts - Negligence, Fiduciary Duty and Fault | damages awarded against CRA for inter alia making unreasonable reassessments | 260 |
| Tax Topics - Income Tax Act - Section 3 - Paragraph 3(a) - Business Source/Reasonable Expectation of Profit | recurring fee reduction amounts received for no work were income from a source | 313 |
Inwest Investments Ltd. v. The Queen, 2015 BCSC 1375
In order to avoid B.C. provincial income tax on a capital gain of $336.2 million which was realized on a sale in 2002 of a control block of a...
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| Tax Topics - General Concepts - Solicitor-Client Privilege | not necessary to provide legal opinion to rely on having consulted legal counsel | 225 |
| Tax Topics - Income Tax Regulations - Regulation 400 - Subsection 400(2) | no fixed place of “business” if no source of business income | 183 |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Business | Marconi test of "business" applied outside source-of-income context | 154 |
| Tax Topics - Statutory Interpretation - French and English Version | "misrepresentation" informed by narrower French version | 109 |
Vine Estate v. Canada, 2015 DTC 5063 [at 5880], 2015 FCA 125
The deceased had a 50% co-ownership interest in a rental property ("Victoria Park"). His terminal return should have shown $1.07 million of...
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| Tax Topics - General Concepts - Onus | onus does not shift to taxpayer to disprove neglect, carelessness, or wilful default | 172 |
Vachon v. Canada, 2014 FCA 224
The taxpayer, who was a consultant, provided signed cheques to his accountant without filling in the recipient. The accountant misappropriated...
Middlebrook v. Canada, 2013 DTC 5001 [at 5501], 2012 FCA 264
The Court affirmed the trial judge's finding of fact that a number of the taxpayers' receipts for inventory were spurious - no inventory was...
Canada v. Johnson, 2013 DTC 5004 [at 5515], 2012 FCA 253
The taxpayer realized gains of $1.3 million from periodically placing funds with a rogue ("Lech") who, it was later discovered, had not invested...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 3 - Paragraph 3(a) - Business Source/Reasonable Expectation of Profit | contractual payments derived from Ponzi scheme were income | 263 |
| Tax Topics - Income Tax Act - Section 9 - Exempt Receipts/Business | taxable gains from contract with Ponzi operator | 263 |
Lacroix v. Canada, 2008 FCA 241
The Minister determined, under a net worth assessment, that the taxpayer had $559,673 of unreported income over four years, and thus reassessed...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 163 - Subsection 163(2) | net worth assessment | 368 |
Gebhart v. Canada, 2008 DTC 6581, 2008 FCA 206
A year in which the Estate failed to include in the Estate's income the $40,953 proceeds of a collapsed RRSP were not statute-barred. Any...
Ridge Run Developments Inc. v. The Queen, 2007 DTC 734, 2007 TCC 68
The agent of the taxpayer, who signed its return, did not question why $1.7 million of forgiveness income reported in the financial statements had...
Naguib v. Canada, 2004 DTC 6082, 2004 FCA 40
The onus was not on the Minister to lead evidence establishing a misrepresentation by the taxpayer given that the taxpayer failed to raise the...
Can-Am Realty Ltd. v. R., 97 DTC 5070, [1997] 2 CTC 152 (FCTD)
In granting an application of the taxpayer for an extension of time to appeal a finding of the trial judge that the taxpayer was required at trial...
Nesbitt v. The Queen, 96 DTC 6045, [1996] 1 CTC 282 (FCTD)
In preparing the taxpayer's return, the taxpayer's accountant erroneously reported the taxpayer's share of a capital gain as $71,139.42 rather...
Can-Am Realty Ltd. v. The Queen, 94 DTC 6293, [1994] 1 CTC 336 (FCTD)
In finding that a corporation and its individual shareholder could be reassessed beyond the normal reassessment period for unreported gains or...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 163 - Subsection 163(2) | 101 |
1056 Enterprises Ltd. v. The Queen, 89 DTC 5287, [1989] 2 CTC 1 (FCTD)
After finding that two corporations were not associated given that an oral agreement between two brothers each of whom owned substantially all the...
Davis v. The Queen, 84 DTC 6518, [1984] CTC 564 (FCTD)
"The Minister is not required to prove misrepresentation before he sends out a notice of reassessment which is dated beyond the 4 year [now 3...
Patricio v. The Queen, 84 DTC 6413, [1984] CTC 360 (FCTD)
Wilful blindness to the necessity of keeping careful records of revenues was sufficient to bring the taxpayer within s. 152(4)(a)(i).
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 163 - Subsection 163(2) | 103 |
Venne v. The Queen, 84 DTC 6247, [1984] CTC 223 (FCTD)
The phrase "misrepresentation that is attributable to neglect" refers to being negligent with respect to one or more aspects of a taxpayer's tax...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 163 - Subsection 163(2) | 69 |
Reilly Estate v. The Queen, 84 DTC 6001, [1984] CTC 21 (FCTD)
There was no "neglect, carelessness or wilful default" by the taxpayer where his accountant (Mr. Tetz), after a careful reading of a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Disposition | 94 | |
| Tax Topics - Statutory Interpretation - Interpretation Bulletins, etc. | 32 |
MNR v. Bisson, 72 DTC 6374 (FCTD)
After finding that the taxpayer had received a taxable benefit from a corporation of which he was a major shareholder as a result of the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 15 - Subsection 15(1) | 224 |
MNR v. Foot, 64 DTC 5196, [1964] CTC 317 (Ex Ct), briefly aff'd 66 DTC 5072 (SCC)
The taxpayer, who underreported his income in his returns but pleaded (p. 5197) that "he honestly believed in the truth of the information...
MNR v. Taylor, 61 DTC 1139, [1961] CTC 211 (Ex Ct)
Failure of the taxpayer to include various items of income in his returns constituted misrepresentations for purposes of s. 42(4) of the 1948 Act....
See Also
Greer v. The King, 2023 TCC 100
Spiro J applied the presumption in s. 181(3) of the Business Corporations Act (NB) that an entry in a share register is, in the absence of...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 15 - Subsection 15(1) | shareholder benefit regarding a transfer to an individual shown on the register as holding one of the 1000 shares | 152 |
Morin v. Agence du revenu du Québec, 2023 QCCQ 2406
A pharmacist (“Morin”), who previously had operated six pharmacies as proprietorships, agreed with her management company (“377”) that she...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose | management fees paid to a related company that performed its functions through the agency of the fee payer were non-deductible | 296 |
Goldhar v. The King, 2023 TCC 30
In finding that CRA could not reassess beyond the normal reassessment period to include substantial amounts as alleged unreported shareholder...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 162 - Subsection 162(10.1) | taxpayer established due diligence defence in relying on his accountants | 353 |
Lauria v. The Queen, 2021 TCC 66
On April 1, 2006, the taxpayers, who were executives of Gluskin Sheff+Associates Inc. (“GS+A”) (but with less clout than the founders), sold a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Fair Market Value - Shares | shares transferred 3 weeks prior to filing the IPO preliminary valued at a 40% “marketability” discount to the IPO value | 373 |
| Tax Topics - Income Tax Act - Section 69 - Subsection 69(1) - Paragraph 69(1)(b) | gain appropriately assessed under s. 69(1)(b) where shares transferred to family trusts two months before closing an IPO at 5% of the IPO price | 327 |
Revenue and Customs v Tooth, [2021] UKSC 17
Mr Tooth, who wished to claim losses generated by a tax avoidance scheme, filed his tax return using IRIS software approved by HMRC. Due to a...
Hansen v. The Queen, 2020 TCC 102
The taxpayer had a grade 9 education, and operated first a concrete pouring business and then a foundation repair business. He and his wife sold a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 9 - Capital Gain vs. Profit - Real Estate | annual purchase, improvement and sale of homes following their occupation was on income account | 229 |
| Tax Topics - Income Tax Act - Section 163 - Subsection 163(2) | benefit of doubt should be given to taxpayer | 252 |
Gestions Cholette Inc. v. The Queen, 2020 TCC 75
For its 2010 taxation year, the taxpayer, due to what Favreau J found to be carelessness of its external accountant, failed to include in its...
Matthew Macisaac Consulting Inc. v. The Queen, 2020 TCC 44
The taxpayer was reassessed for quite a number of taxation years for which the main substantive issue was whether dispositions of shares in an...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Other Legislation/Constitution - Federal - Tax Court of Canada Rules (General Procedure) - Section 58 - Subsection 58(1) | refusal of request for Rule 58 determination that reporting gains as on capital rather than income account was not a “misrepresentation” | 388 |
Demers v. Agence du revenu du Québec, 2020 QCCA 681
The individual taxpayer (Demers) was a director of the owner of the RadioX team, which was a minor professional hockey team. The corporation had...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 227.1 - Subsection 227.1(3) | tax advice with clearly flawed factual assumptions did not meet a director’s due diligence defence | 352 |
Scotti v. Agence du revenu du Québec, 2019 QCCQ 7579, effectively overruled in part by Verrier v. ARQ, 2024 QCCA 298
An insurance broker (Mr. Chabot), whose licence subsequently was revoked, engaged in a scheme to cheat insurers, resulting in his pocketing...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(x) | broker-paid rebates of life insurance policy premiums are taxable under s. 12(1)(x) | 468 |
D’Anjou v. The Queen, 2019 TCC 208
Following his disposition in 2012 of a parcel of undeveloped land which he had acquired in 1997, the taxpayer treated the adjusted cost base of...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 54 - Adjusted Cost Base | land ACB not increased by municipal taxes or interest | 96 |
Mikhail v. The Queen, 2019 TCC 49 (Informal Procedure)
Rebates (in the form of traveller’s cheques, gift cards and prepaid credit cards) were received by an incorporated pharmacy from generic...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 15 - Subsection 15(1) | taxpayers could resile from their admission that they received funds from their corporation | 412 |
Prima Properties (92) Ltd. v. The Queen, 2019 TCC 4
CRA assessed the taxpayer on the basis that there was a change in use of its rental property from commercial activity to exempt rental activity,...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 298 - Subsection 298(4) - Paragraph 298(4)(a) | a taxpayer was not negligent in failing to ask its accountant about a change in use of its rental property | 610 |
Mammone v. The Queen, 2018 TCC 24, rev'd 2019 FCA 45
The CRA revocation of a registered pension plan (the “New Plan”) was invalid due to inadvertent failure to comply with the 30-day notice...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(4) | RPP revocation beyond the normal reassessment period retroactively validated an unsupportable reassessment under s. 56(1)(a)(i) | 414 |
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(9) | subsequent retroactive deregistration of RPP also retroactively validated an assessment factually made on basis of plan’s invalidity | 216 |
| Tax Topics - General Concepts - Effective Date | subsequent deregistration of RPP retroactively validated reassessment | 239 |
| Tax Topics - Income Tax Act - Section 147.1 - Subsection 147.1(12) | subsequent deregistration of RPP beyond normal reassessment period nonetheless retroactively validated reassessment | 95 |
| Tax Topics - Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(a) - Subparagraph 56(1)(a)(i) | valid assessment for transfer to an RPP that was retroactively deregistered | 85 |
Thompson v. The Queen, 2017 TCC 115
The taxpayer incorporated a mortgage sourcing business in the “Corporation,” and hired a chartered accountant, Mr. Halford, to assist him and...
Mont-Bruno C.C. Inc. v. The Queen, 2018 TCC 105
The taxpayer was a non-profit organization established for the purpose of operating a golf course for its members. In 2006 it disposed of a parcel...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 149 - Subsection 149(5) - Paragraph 149(5)(e) - Subparagraph 149(5)(e)(ii) | not clear negligence to not report sale of adjoining wooded lands | 175 |
Krenbrink Estate v. The Queen, 2014 DTC 1065 [at 2996], 2014 TCC 22
The taxpayer had a registered retirement income fund worth $228,164 at his time of death, which the estate's tax preparers forgot to include in...
Francis & Associates v. The Queen, 2014 DTC 1146 [at 3468], 2014 TCC 137 (Informal Procedure)
A review of a law firm's accounts in 2005 by its external accountant revealed various substantial errors for the 2002 to 2004 years. The...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(p) - Subparagraph 20(1)(p)(i) | subsequently discovered bad debts not claimable; unbilled disbursements deductible under s. 9 | 251 |
Desmarais v. The Queen, 2013 DTC 1044 [at 2804], 2013 TCC 356 (Informal Procedure)
The taxpayer was assessed a penalty for failure to file T1134 forms, which provided that filing was not required if the corporation had gross...
832866 Ontario Inc. v. The Queen, 2014 TCC 93 (Informal Procedure)
The appellant, a small custom-home builder, was held equally by a married couple (the DeMarcos). In 2006, the couple sold their home and moved...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 298 - Subsection 298(4) - Paragraph 298(4)(a) | failure to query GST treatment of self-supply | 184 |
Ross v. The Queen, 2013 DTC 1250 [at 1400], 2013 TCC 333
Bocock J found that misrepresentations made by the taxpayer on audit in 2003 respecting the appropriateness of registering a single-employee...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(4.01) | 371 | |
| Tax Topics - Income Tax Regulations - Regulation 8502 - Paragraph 8502(a) | 320 |
Bandula v. The Queen, 2013 DTC 1225 [at 1238], 2013 TCC 282
The taxpayer had limited English skills and no understanding of the Canadian tax system or appropriate record-keeping standards. Bocock J found...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 163 - Subsection 163(2) | new immigrant | 69 |
De Couto (Alco Windows Inc.) v. The Queen, 2013 DTC 1161 [at 880], 2013 TCC 198 (Informal Procedure)
Bocock J found that the taxpayer, having failed to maintain adequate records and having engaged in "inscrutable" tracking of expenses, shareholder...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 163 - Subsection 163(2) | dismal records but no deceit | 112 |
Aridi v. The Queen, 2013 DTC 1189 [at 1015], 2013 TCC 74
The taxpayer had disposed of half his interest in a rental property. His accountant informed him that a "rollover" was available for this...
Lenneville v. The Queen, 2013 DTC 1196 [at 1045], 2013 TCC 56
The taxpayers ran a commercial fishing business. Because a substantial portion of that business was operated on a cash basis, a CRA auditor used...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 163 - Subsection 163(2) | net worth assessment did not prove misrepresentation | 126 |
Roud Estate v. The Queen, 2013 DTC 1057 [at 309], 2013 TCC 36 (Informal Procedure)
The deceased ("Roud") held shares in a corporation that was converted into an income trust. With no rollover treatment available, she realized a...
Schmidt v. The Queen, 2013 DTC 1063 [at 337], 2013 TCC 11
The Minister imputed additional income to the taxpayer based on deposits into his bank account that he had not included in his return, and on that...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 163 - Subsection 163(2) | alleged family loan was credible | 111 |
Grossett v. The Queen, 2012 DTC 1185 [at 3465], 2012 TCC 179 (Informal Procedure)
The taxpayers relied on charitable receipts which showed donations amounting to approximately 25% of their annual income, and which had been...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 118.1 - Subsection 118.1(1) - Total Charitable Gifts | 53 |
Mullen v. The Queen, 2012 DTC 1154 [at 3358], 2012 TCC 139 (Informal Procedure)
The taxpayer was reassessed in respect of income from stock options exercised in 1997, 1999, and in 2001. He argued that he was not a Canadian...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 115 - Subsection 115(1) - Paragraph 115(1)(a) - Subparagraph 115(1)(a)(i) | 41 | |
| Tax Topics - Income Tax Act - Section 163 - Subsection 163(2) | superficial attempt to change residence | 199 |
| Tax Topics - Income Tax Act - Section 2 - Subsection 2(1) | 229 |
9067-9051 Québec Inc., Vincent v. The Queen, 2012 DTC 1073 [at 2842], 2011 TCC 456
The individual taxpayer ("Vincent") was the sole shareholder and director of the corporate taxpayer ("9067"). Vincent's home, which was owned by...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 163 - Subsection 163(2) | 152(4)(a)(i) is lesser threshold | 75 |
| Tax Topics - Income Tax Act - Section 9 - Capital Gain vs. Profit - Real Estate | 194 |
D'Andrea v. The Queen, 2011 DTC 1234 [at 1356], 2011 TCC 298
The taxpayer was convicted of fraud for arranging, in his capacity of manager of a company, for a sale of a property of the company at a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 56 - Subsection 56(2) | 152 |
Ha v. The Queen, 2011 TCC 271
The registrant's assessment beyond the normal period, for unreported income of $91,232, $50,125, $64,540 and $66,596 in successive years, and...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 298 - Subsection 298(4) - Paragraph 298(4)(a) | 90 |
Palardy v. The Queen, 2011 DTC 1188 [at 1050], 2011 TCC 108
The taxpayer sold a residence eight months after the point at which she had completed its construction and moved in. The Minister reassessed...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 54 - Principal Residence | 151 | |
| Tax Topics - Income Tax Act - Section 9 - Capital Gain vs. Profit - Real Estate | 122 |
Cameron v. Queen, 2011 DTC 1166 [at 914], 2011 TCC 107
The taxpayer purchased a lot and built a house on it. Over a period of less than two years, he moved in with his family, rented the property out,...
Stanislao Calandra o/a Calandra Hair Studio v. The Queen, 2011 DTC 1049 [at 142], 2011 TCC 7 (Informal Procedure)
The taxpayer reported successive business losses, arousing the Minister's suspicion as to how the taxpayer could support his family when he...
Misiak v. The Queen, 2011 DTC 1048 [at 237], 2011 TCC 1 (Informal Procedure)
The Minister reassessed the taxpayer in respect of several taxation years by way of a net worth assessment, on the assumption that the taxpayer...
Envision Credit Union v. The Queen, 2010 DTC 1399 [at 4585], 2010 TCC 576, aff'd 2012 DTC 5055 [at 6842], 2011 FCA 321, aff'd 2013 DTC 5144 [at 6275], 2013 SCC 48
The filing position of the taxpayer that tax attributes of predecessor corporations did not flow through to it on an amalgamation that did not...
Labow v. The Queen, 2010 TCC 408, 2010 DTC 1282 [at 3956], aff'd 2012 DTC 5001 [at 6501], 2011 FCA 305
The taxpayers disguised a tax deferral scheme as a health plan for their employee wives. Bowie J. found that the plans had not been entered into...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose | health plan was disguised deferral scheme | 56 |
Létourneau v. The Queen, 2010 DTC 1232 [at 3656], 2010 TCC 203
The taxpayer could be reassessed under s. 227.1 beyond the normal reassessment period in light, inter alia, of a finding that she had tampered...
Chaumont v. The Queen, 2010 DTC 1014 [at 2599], 2009 TCC 493 (Informal Procedure)
After noting that the taxpayer's submissions as to his exemption under the Canada-France Convention on interest income earned by him from a French...
Donato v. The Queen, 2009 DTC 1384 [at 2111], 2009 TCC 590
After finding that donations of cartoon drawings by the taxpayer did not qualify as dispositions of personal-use property, Woods, J. went on to...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 54 - Personal-Use Property | 52 |
Sljivar v. The Queen, 2009 DTC 1381 [at 2103], 2009 TCC 581
The taxpayer was negligent in not even making a cursory review of his tax return, which claimed expenses which he clearly was not entitled to, for...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(4) - Paragraph 152(4)(a) - Subparagraph 152(4)(a)(ii) | 58 |
Wachsmann v. The Queen, 2009 TCC 420
The Minister was able to reassess the taxpayer beyond the normal reassessment period in respect of mortgage interest expenses claimed by her in...
College Park Motor Products Ltd. v. The Queen, 2009 DTC 1469, 2009 TCC 409
The taxpayer, which made a voluntary disclosure in respect of its failure to report large corporations tax liabilities and its improper claiming...
Dalphond v. The Queen, 2009 DTC 1395, 2008 TCC 427, aff'd 2010 DTC 5016 [at 6589], 2009 FCA 121
The taxpayer, who had retired from a long career of managing pension funds (and, therefore, was considered to be sophisticated), made a...
O'Dea v. The Queen, 2009 DTC 912, 2009 TCC 295
After finding that the taxpayers did not have limited recourse amounts for promissory notes they gave as consideration for the limited partnership...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Payment & Receipt | no evidence of payment through off-settable cash | 87 |
| Tax Topics - Income Tax Act - Section 143.2 - Subsection 143.2(7) | 136 | |
| Tax Topics - Income Tax Act - Section 163 - Subsection 163(2) | 49 | |
| Tax Topics - Income Tax Act - Section 96 | 56 |
Séguin Boyer v. The Queen, 2008 DTC 4891, 2008 TCC 88
The failure of the taxpayer, who was an accounting secretary, to report taxable capital gains of approximately $168,000 realized by her in both...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 163 - Subsection 163(2) | 40 |
Savard v. The Queen, 2008 TCC 62
The failure of the taxpayer to include in his income the reimbursement by a corporation of expenses incurred by him in connection with a criminal...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) | 77 |
Abakhan & Associates Inc. v. Canada (Attorney General), 2008 DTC 6028, 2007 FC 1327
O'Reilly J. indicated that he saw nothing preventing a company from making a request for judicial review of a decision of the Minister not to...
Mensah v. The Queen, 2008 DTC 4358, 2008 TCC 378
In noting that the Minister had not discharged the onus placed on the Minister under s. 152(4)(a)(i), Bowman C.J. stated (at para. 37) that "there...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose | 30 |
McKellar v. The Queen, 2007 DTC 1007, 2007 TCC 266
The Crown did not discharge the onus on it of establishing that a misrepresentation by the taxpayer (relating to claiming losses from the...
Peek v. The Queen, 2007 DTC 602, 2007 TCC 152
Profits realized by the taxpayer from a fraudulent cheque-kiting operation were not statute-barred given the materiality of the amounts involved.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 9 - Exempt Receipts/Business | cheque kiting operation | 29 |
| Tax Topics - Income Tax Act - Section 9 - Expense Reimbursement | 29 |
Petric v. The Queen, 2006 DTC 3082, 2006 TCC 306
In finding that the Minister was statute-barred in assessing a corporation and its shareholder on the basis that property had been transferred...
S.E.R. Contracting Ltd. v. The Queen, 2006 DTC 2212, 2006 TCC 6 (Informal Procedure)
After indicating that where the Minister assessed under s. 152(4)(a)(i) the burden of proof was on him to establish that the taxpayer had made a...
Succession de Feu Cléophas Saint-Aubin c. La Reine, 2005 DTC 912, 2003 TCC 608
The trustee of an estate (who was a lawyer) made a misrepresentation in completing a return of the trust for the year in which the 21-year rule...
Riordan v. The Queen, 2005 DTC 397, 2005 TCC 150
The Minister had the right to reassess the taxpayer after the normal reassessment notwithstanding that the taxpayer had not been issued any T4...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 163 - Subsection 163(2) | 114 |
Central Interior Incorporated v. The Queen, 2005 DTC 144, 2004 TCC 725
Errors of the taxpayer were attributable to the state of mess of its records. The keeping of records in this fashion was negligent, with the...
Hyndman v. The Queen, 2004 TCC 641
CRA was justified in assessing the taxpayer, a managerial employee of Pfizer, for failure to report stock option benefits realized by him in 1994,...
Jencik v. The Queen, 2004 TCC 295 (Informal Procedure)
The Minister, who sought to reassess the taxpayer beyond the normal reassessment period in respect of alleged unreported income from businesses,...
Sidhu v. The Queen, 2004 DTC 2540, 2004 TCC 174
The taxpayer was grossly negligent in seeking professional assistance in preparing his tax returns which reported rental and business losses while...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 45 - Subsection 45(1) - Paragraph 45(1)(a) | must be unequivocal inconsistent use | 120 |
| Tax Topics - Income Tax Act - Section 54 - Principal Residence | 100 |
Produits Forestiers St-Armand Inc. c. La Reine, 2004 DTC 2494, 2003 TCC 696
The taxpayer had shown an indifference to the accuracy of its returns in classifying expenses relating to the acquisition of vehicles and certain...
Snowball v. The Queen, 97 DTC 512, [1996] 2 CTC 2513 (TCC)
The taxpayer did not report his share of the profits realized by a real estate partnership. Although this failure would not have been negligent...
N .J . Martin Management Services Ltd. v. R., [1997] 1 CTC 2005, 97 DTC 487
The taxpayers had made a misrepresentation attributable to "neglect, carelessness or wilful default" in taking the position that customer goodwill...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 163 - Subsection 163(2) | 49 |
Prévost v. MNR, [1996] 1 CTC 2701 (TCC)
The taxpayer agreed to act as nominee for a bankrupt individual ("Gingras") and Gingras' wife in purchasing shares of a corporation ("Dalhousie")...
Ver v. Canada, [1995] TCJ No. 593
The Minister's reassessment of the taxpayers' 1988 taxation year beyond the normal reassessment period, on the basis that various claimed expenses...
Farm Business Consultants Inc. v. The Queen, 95 DTC 200, [1994] 2 CTC 2450 (TCC), briefly aff'd 96 DTC 6085 (FCA)
The taxpayer was found to have made a misrepresentation attributable to neglect, carelessness or wilful default when it deducted "management fees"...
Abogado v. The Queen, 96 DTC 3254, [1995] 1 CTC 2711 (TCC)
In finding that the Minister was entitled to reassess the taxpayers for business losses claimed by them with respect to an Amway distributorship...
Gauthier v. MNR, 93 DTC 758, [1993] 1 CTC 2522, [1992] 1 CTC 2553 (TCC)
The taxpayer did not make a misrepresentation attributable to carelessness or wilful default in following a cash basis of accounting rather than...
Poulin v. MNR, 87 DTC 113, [1987] 1 CTC 2171 (TCC)
The taxpayer, who did not have much education or accounting background, would spend periods of up to six months at a time in the bush cutting...
Markakis v. MNR, 86 DTC 1237, [1986] 1 CTC 2318 (TCC)
The Minister made net worth reassessments of the taxpayer for his 1974 to 1976 taxation years beyond the normal reassessment. The Minister could...
N.D. Glazier Ltd. v. MNR, 83 DTC 48 (TRB)
When the taxpayer reported in its 1974 return a sale by it of a real estate option, it treated the cost to it of the option as being equal to its...
Administrative Policy
22 August 2022 Internal T.I. 2019-0810061I7 - XXXXXXXXXX v MNR -220(3) and 152(7)
ACo’s 2011 to 2013 taxation years were arbitrarily assessed under s. 152(7). Eventually, it filed tax returns for those taxation years after the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 220 - Subsection 220(3) | s. 220(3) could not be used to extend the normal reassessment period running from an arbitrary assessment | 243 |
| Tax Topics - Income Tax Act - Section 164 - Subsection 164(1.5) | s. 164(1.5) is a complete code for when the s. 164(1) period can be extended, so that s. 220(3) cannot be so used | 283 |
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(6) | s. 152(6) is limited by s. 152(4)(b) | 221 |
7 October 2021 APFF Roundtable Q. 16, 2021-0901061C6 F - 2021 APFF Q.16 - Disclosure of a counter letter
What is CRA's current policy regarding the disclosure of a nominee agreement? CRA responded:
Article 1451 of the C.C.Q. allows parties to modify...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 116 - Subsection 116(3) | CRA may be willing to issue a letter confirming that no s. 116 certificate is required because the true vendor is a resident | 158 |
6 October 2017 APFF Financial Strategies and Instruments Roundtable Q. 14, 2017-0708511C6 F - T1135 and 162(7) penalty
In 2015-0588971C6, CRA indicated that the proposition that “the late-filing penalty of $2,500 under subsection 162(7) applies automatically…...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 162 - Subsection 162(7) | penalty for late-filing of a T1135 will be imposed automatically | 223 |
May 2016 Alberta CPA Roundtable, Q.17
Respecting whether a s. 162(7) penalty for failure to file a T1135 can be assessed beyond the normal reassessment period, CRA stated that although...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 220 - Subsection 220(3.1) | T1135 filings for all years required | 33 |
| Tax Topics - Income Tax Act - Section 162 - Subsection 162(7) | penalty not an absolute liability penalty | 87 |
26 May 2016 Alberta CPA Roundtable, 2016-0645001C6 - Failure to file Form T1135
Can a taxpayer who failed to file Form T1135 be assessed a penalty under s. 162(7) after the normal reassessment period? After referring to the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 162 - Subsection 162(7) | failure to file a T1135 may not indicate carelessness or neglect | 85 |
4 December 2014 Internal T.I. 2014-0526451I7 F - Assessment beyond the normal reassessment period
A resident individual failed to respond to a demand under s. 150(2) to file a return for his 2008 year, so that in 2009 CRA assessed under s....
30 June 2014 Internal T.I. 2013-0508411I7 F - Part IV Tax and the Dividend Refund
Investments and XX each held shares in the other. Investments, which had an RDTOH balance at year end, redeemed shares held by XX during the year,...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 186 - Subsection 186(1) | when to stop circular calculation for cross dividends arising after tuck under | 222 |
14 July 2014 Internal T.I. 2014-0537701I7 F - Voluntary disclosure - T1134 and FAPI
Representatives of a taxpayer initiated a voluntary disclosure for a taxpayer who had not filed T1134s and who had failed to report foreign...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 162 - Subsection 162(10) | s. 162(10) penalty for failure to file T1134s | 134 |
| Tax Topics - Income Tax Act - Section 162 - Subsection 162(7) | penalties under ss. 162(10), (10.1) or 163(2.4) for failure to file T1134s | 134 |
| Tax Topics - Income Tax Act - Section 163 - Subsection 163(2.4) | penalties for failure to file T1134s | 134 |
| Tax Topics - Income Tax Act - Section 220 - Subsection 220(3.1) | requirements where undisclosed FAPI | 212 |
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(4) - Paragraph 152(4)(b) - Subparagraph 152(4)(b)(iii) | Ho acknowledged | 98 |
5 June 2014 Internal T.I. 2013-0509051I7 - Penalties beyond the Normal Reassessment Period
The level of culpability required to assess beyond the normal reassessment period (in this case, a penalty under s. 162(7)) pursuant to s....
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 162 - Subsection 162(7) | carelessness sufficient to assess beyond normal reassessment period | 60 |
11 June 2014 Internal T.I. 2014-0519701I7 - Filing a NIL return to avoid late-filing penalties
Can CRA refuse to accept either a NIL tax return (which does not report any of the transactions on which tax is payable) or a substantially...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 162 - Subsection 162(1) | return with substantive missing elements | 125 |
| Tax Topics - Income Tax Act - Section 163 - Subsection 163(2) | return with substantive missing elements | 61 |
9 November 2012 CTF Atlantic Roundtable, 2012-0465921C6 - CTF Atlantic - Statute Barred Years
1. What is "misrepresentation"?
There is no requirement that the person providing the information intended to deceive the CRA ... . ... [T]he...
21 September 2012 Internal T.I. 2012-0447401I7 - Minister's ability to reassess under 152(4)
The Minister initially made arbitrary assessments under s. 152(7) of a CCPC that had not filed returns. The CCPC then filed returns for some or...
30 July 2012 Internal T.I. 2012-0436711I7 F - Reassessment beyond the normal reassessment period
CRA obtained a copy of an audit report of the Ministère du Revenu du Québec ("MRQ") as part of the information exchange program between it and...
1 April 2010 Internal T.I. 2009-0352611I7 F - Redressement après le délai de prescription
Where a taxpayer claimed the married or common-law partnership tax credit (the "Tax Credit") and, after the taxpayer’s spouse was assessed...
14 January 2010 Internal T.I. 2009-0323991I7 F - Débenture échangeable et opération à terme
After finding that a cash premium paid by the taxpayer in settling an exchangeable debenture issued by a predecessor was only half-deductible...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(f) | only ½ deduction under s. 20(1)(f)(ii) for premium paid on cash-settling an exchangeable debenture under pre-2010 policy, and no s. 20(1)(f) deduction for cash settlement of forward | 337 |
| Tax Topics - Income Tax Act - Section 9 - Capital Gain vs. Profit - Futures/Forwards/Hedges | premium was paid on capital account in closing out a cash-settled forward entered into in order to monetize a shareholding | 221 |
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(1) | CRA position of applying changes in published policy prospectively | 105 |
2 February 2005 Internal T.I. 2005-0113241I7 - Reassessment Beyond the Normal Reassessment Period
Given that under s. 152(4)(a)(i), "any misrepresentation must be made at the time that the return was filed", it followed that an inadvertent...
October 1992 Central Region Rulings Directorate Tax Seminar, Q. I (May 1993 Access Letter, p. 230) Discussion comparing the conduct described in s. 163(2) and s. 152(4)(a)(i).
Articles
Robert Kopstein, Rebecca Levi, "When Should the Courts Allow Reassessments Beyond the Limitation Period", Canadian Tax Journal, (2010) Vol. 58, No. 3, 475-527
After a lengthy review of the jurisprudence on late assessments, the authors stated (at pp. 509-11):
The following circumstances were found by the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Solicitor-Client Privilege | 125 |
Brent F. Murray, "Extending the Assessment Limitation Period", Canadian GST Monitor, No. 275, August 2011, p. 1.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 298 - Subsection 298(4) - Paragraph 298(4)(a) | 0 |
Krishna, "Reassessments Based on Fraud or Misrepresentation", Canadian Current Tax, October 1992, p. A25.
Subparagraph 152(4)(a)(ii)
Cases
Mitchell v. Canada, 2002 DTC 7502, 2002 FCA 407
Counsel for the taxpayers had agreed with Revenue Canada that the taxpayers' files would be held by Revenue Canada in abeyance pending the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Statutory Interpretation - Interpretation Act - Section 32 | 26 |
Mitchell v. Attorney General of Canada, 2001 DTC 5290 (FCTD)
Letters sent by counsel for the taxpayers to Revenue Canada which contained essentially all the information required for a waiver did not qualify...
Solberg v. The Queen, 92 DTC 6448, [1992] 2 CTC 208 (FCTD)
Reed J. concluded that a reference in a waiver to "Part III" of the Act was a technical defect which did not impair the substance of the waiver,...
Cal Investments Ltd. v. The Queen, 90 DTC 6556, [1990] 2 CTC 418 (FCTD)
A waiver signed by the V-P Finance of the taxpayer with the implied authority to do so but not under seal, was binding on the taxpayer, i.e., "the...
See Also
Csak v. The King, 2024 TCC 9
Two months after their marriage, the taxpayer received (on January 8, 1993) from her husband (“CC”) the transfer of a property valued in...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 160 - Subsection 160(1) | marrying and caring for the transferor was not consideration for the transfer | 237 |
| Tax Topics - Income Tax Act - Section 160 - Subsection 160(2) | taxpayer able to dispute the validity of assessments of her transferor husband even though an executrix of his estate at the time of his unsuccessful appeal of those assessments | 286 |
| Tax Topics - Statutory Interpretation - Interpretation Act - Section 26 | s. 26 of Interpretation Act did not extend the normal reassessment period for receiving the 2nd waiver | 240 |
| Tax Topics - General Concepts - Onus | Minister failed to meet her onus that a waiver had been timely-received | 154 |
| Tax Topics - General Concepts - Res Judicata | res judicata did not apply to taxpayer’s dispute of the validity of assessments of her transferor husband even though an executrix of his estate at the time of his unsuccessful appeal of those assessments | 202 |
| Tax Topics - Other Legislation/Constitution - Federal - Federal Courts Act - Section 18.1 - Subsection 18.1(2) | collection matters for the Federal Court | 40 |
Loiselle v. Agence du revenu du Québec, 2019 QCCQ 4647
The taxpayer was experiencing difficulties in locating documents to substantiate the amount of her capital gain form the disposition of shares of...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(4.1) | filing a revocation of a waiver confirmed that the waiver had been validly given | 212 |
984274 Alberta Inc. v. The Queen, 2019 TCC 85, rev'd 2020 FCA 125
An assessment made of the taxpayer beyond the normal reassessment period was void as the waiver pursuant to which it purportedly was made had also...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(8) | reassessment made pursuant to late waiver could not be cured by s. 152(8) | 47 |
| Tax Topics - Income Tax Act - Section 169 - Subsection 169(3) | voidness of assessment against 2nd taxpayer to a settlement agreement meant that it could not be assessed under s. 169(3) | 285 |
| Tax Topics - Income Tax Act - Section 164 - Subsection 164(1) | invalid reassessment could not establish a refund amount | 263 |
| Tax Topics - Income Tax Act - Section 160.1 - Subsection 160.1(1) | refund made pursuant to a void reassessment was not made pursuant to the Act (and also was not a “refund” on ordinary principles) so that s. 160.1(1) unavailable | 488 |
Kerry (canada) Inc. v. Canada (Attorney General), 2019 FC 377
A Canadian company (Kerry Canada) was reassessed under s. 247 to increase its income from product sales to a US affiliate and disallow deductions...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(4) - Paragraph 152(4)(c) | request to hold notices of objection in abeyance pending Canadian competent authority review amounted to implied waivers | 486 |
Radelet v. The Queen, 2017 TCC 159
At issue was whether the taxpayer could be reassessed beyond the normal reassessment period for failure to report a capital gain of $445,551...
Remtilla v. The Queen, 2015 TCC 200
The taxpayers, a married couple, bought and sold stock options through a joint account with an investment firm ("Canaccord"). They had reported...
Rémillard v. The Queen, 2011 DTC 1286 [at 1617], 2011 TCC 327
McArthur J. dismissed the taxpayer's argument that his waiver of the normal limitations period on reassessments applied only to the first...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(15.1) | 118 |
Sljivar v. The Queen, 2009 DTC 1381 [at 2103], 2009 TCC 581
A waiver signed by the taxpayer was valid given that he had the ability to read the title of the form (and if he did not understand what "waiver"...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(4) - Paragraph 152(4)(a) - Subparagraph 152(4)(a)(i) | didn't review return | 41 |
Arpeg Holdings Ltd v. The Queen, 2007 DTC 131, 2006 TCC 593
The taxpayer was unsuccessful in establishing that its vice president did not have authority to sign a waiver on its behalf. He had the ostensible...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Agency | 85 | |
| Tax Topics - General Concepts - Non Est Factum | 82 |
Brown v. The Queen, 2006 DTC 3274, 2006 TCC 381
Although a waiver signed by the taxpayer referred to tax under Part XI.3 and XVI of the Act, whereas the reassessment by the Minister beyond the...
Chafetz v. The Queen, 2006 DTC 2119, 2005 TCC 803
After an initial review of the taxpayer's deduction of Canadian exploration expense ("CEE") in respect of the acquisition of seismic data the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(4.01) | 145 |
Villeneuve v. The Queen, 2004 DTC 2258 (TCC), rev'd 2004 DTC 6077 (FCA)
Assessments could be made of the taxpayer beyond the normal assessment period in respect of an arrangement under which he paid an individual...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 163 - Subsection 163(2) | 79 |
Mierins v. The Queen, 96 DTC 1140 (TCC)
After stating (at. p. 1142) that he could not "think of any good reason why (at least before the introduction of subsection 152(4.1)) a section...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(1) | 86 |
Loukras v. MNR, 90 DTC 1557, [1990] 2 CTC 2044 (TCC)
Taxpayer's counsel was unsuccessful in a submission that a reassessment of the Minister was void because the Minister is only permitted to make...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 44 - Subsection 44(2) - Paragraph 44(2)(b) | 38 |
Administrative Policy
15 June 2015 Internal T.I. 2015-0583081I7 - Refund Request - Normal Reassessment Period
In clarifying the indication in 2012-0468081I7 that "where a refund request is based on issues that are covered by a valid waiver, a refund may be...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 164 - Subsection 164(1) | inferring refund request from waiver | 147 |
15 March 2013 Internal T.I. 2012-0468081I7 - Paragraph 164(1)(b)
Does s. 164(1)(b) permit a refund to be made where a taxpayer has filed a valid waiver to allow a reassessment beyond the normal reassessment...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 164 - Subsection 164(1) | refund request not related to issues in waiver issues | 119 |
14 May 1991 T.I. (Tax Window, No. 3, p. 26, ¶1232)
RC may revise paragraph 14 of IT-270R2 to take into consideration s. 152(4)(b)(iv).
87 C.R. - Q.44
A taxpayer may file more than one waiver at the same time for a particular taxation year.
87 C.R. - Q.45
A notice of revocation of waiver cannot be withdrawn once it has been filed.
85 C.R. - Q.2
Taxpayers will not be requested to file waivers solely for the purpose of assisting RC to meet the 3-year time limit.
IT-270R2 "Foreign Tax Credit" under "Addition to Taxable Income"
A taxpayer should file a waiver where the normal reassessment period may expire before an expected foreign tax assessment is received.
IC 75-7R3 "Reassessment of a Return of Income"
Articles
Pound, "Remedial Tax Planning: How to Fix It When It's Broke", 1993 Conference Report, c. 9, pp. 9:9 - 12
Includes a reference to the decision of the Quebec Court of Appeal in Banque Nationale du Canada v. Quebec, in which it was held that the Minister...
Paragraph 152(4)(b)
Cases
Canada v. Agazarian, 2004 DTC 6366, 2004 FCA 32
Within the normal reassessment period, the Minister reassessed the taxpayer's 1987 taxation year to permit the deduction, at the taxpayer's...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(4.01) | 58 | |
| Tax Topics - Statutory Interpretation - French and English Version | 115 | |
| Tax Topics - Statutory Interpretation - Legislative History | 74 |
Clibetre Exploration Ltd. v. Canada (Minister of National Revenue), 2003 DTC 5073, 2003 FCA 16
The taxpayer, which had claimed non-capital losses from its mining business, sought more than three years later to have the expenses giving rise...
Paramount Productions Inc. v. The Queen, 93 DTC 5285, [1993] 2 CTC 47 (FCTD)
The Crown was unable to establish that an assessment issued on December 28, 1981 in respect of the July 30, 1980 taxation year of the taxpayer...
Placer Dome Inc. v. The Queen, 91 DTC 5115 (FCTD)
After the taxpayer had carried a non-capital loss for his 1981 taxation year back to 1980, s. 152(4)(b) was amended "applicable after April 19,...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Statutory Interpretation - Retroactivity/Retrospectivity | change prejudicial so that presumption applied | 129 |
See Also
Leola Purdy Sons Ltd. v. The Queen, 2009 DTC 220, 2009 TCC 21
In a year that was now statute-barred, the taxpayer reported losses on trading futures as being on capital account, and was assessed for the year...
Papiers Cascades Cabano Inc. c. La Reine, 2006 DTC 2305, 2005 TCC 396
After the 1995 taxation year the taxpayer became statute-barred, the Minister determined that the taxpayer had claimed an excessive investment tax...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 127 - Subsection 127(9) - Investment Tax Credit | 140 |
VIH Logging Ltd v. The Queen, 2004 DTC 2090, 2003 TCC 732, aff'd 2005 DTC 5095, 2005 FCA 36
A notice of reassessment was given by CCRA to a courier before the taxpayer became statute-barred, but was not received by the taxpayer until...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Evidence | 64 | |
| Tax Topics - Income Tax Act - Section 244 - Subsection 244(14) | 81 |
Agazarian v. The Queen, 2003 DTC 435 (TCC), rev'd 2004 FCA 32
After reassessing the taxpayer's 1987 taxation year pursuant to the taxpayer's request for carry back of a non-capital loss allegedly realized by...
Administrative Policy
10 March 2016 Internal T.I. 2015-0614161I7 - Extended reassessment period 152(4)(b)
Where Canadian-controlled private corporation was issued an original notice of assessment for a particular taxation year on December 31, 2013, a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Statutory Interpretation - Interpretation Act - Section 27 - Subsection 27(3) | normal or extended reassessment period ends on the anniversary date | 200 |
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(3.1) | normal reassessment period ends on the assessment anniversary date | 39 |
1993 A.P.F.F. Round Table, Q.9
Where the taxpayer is subject to Part IV tax under s. 186(1)(b) as a result of a dividend payment to it by its subsidiary generating a dividend...
20 January 1993 Memorandum Tax Window, No. 28, p. 23, ¶2393)
Where two notices of assessment are issued in respect of the same return, with the second notices of reassessment being issued to correct the...
Subparagraph 152(4)(b)(i)
Cases
1455257 Ontario Inc. v. Canada, 2021 FCA 142
The validity of a s. 160 assessment of the taxpayer turned in part on whether the affiliate from which the taxpayer had received a transfer of...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 160 - Subsection 160(1) - Paragraph 160(1)(e) | s. 160 applied to post-transfer interest | 316 |
| Tax Topics - Income Tax Act - Section 111 - Subsection 111(1) - Paragraph 111(1)(a) | carrybacks must be requested by the taxpayer | 232 |
Administrative Policy
17 November 2022 External T.I. 2021-0919001E5 F - Eligible Dividends and Non-Capital Loss Carry-Back
Opco incurred a non-capital loss (an "NCL") in each of its 2019 and 2020 taxation years (the 2019 and 2020 Loss Years), and carried back the 2019...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 89 - Subsection 89(1) - General Rate Income Pool - Element B | B of formula reduces GRIP by NCLs carried back | 167 |
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(6) - Paragraph 152(6)(c) | s. 152(6)(c) permitted amending carryback request, if made within s. 152(6)(c) deadline and normal reassessment period, and implicitly authorized consequential Part III.1 reassessment | 278 |
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(3) | s. 152(3) (and, consequentially, s. 185.2(2)) requires filing of amended return to reflect missing excessive dividend | 173 |
| Tax Topics - Income Tax Act - Section 185.1 - Subsection 185.1(2) | s. 185.1(2) election can be made before the incremental Part III.1 assessment that is being avoided | 181 |
11 October 2017 External T.I. 2016-0673171E5 - Foreign tax credit - former resident
Where a Korean immigrated to Canada while holding appreciated Korean real property and then emigrated from Canada 10 years later after it had...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 126 - Subsection 126(2.21) | emigration-year return generally cannot be opened up more than 6 years later to allow a FTC for foreign tax imposed on a subsequent sale | 336 |
11 October 2017 External T.I. 2016-0660421E5 - Foreign tax credit – former resident
The taxpayer, who had been resident in Canada for over five years, realized a capital gain from the deemed disposition of real property situated...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 126 - Subsection 126(2.21) | waiver cannot be used to extend period in which foreign tax must be triggered | 170 |
9 February 2011 Internal T.I. 2010-0388491I7 F - Période de nouvelle cotisation
A particular taxation year could be reassessed, to reduce a loss incurred for that year, until the day that is 3 years after the expiration of the...
2 May 2005 Internal T.I. 2005-0113941I7 F - Reassessment in the Extended Reassessment Period
Two associated corporations (Ainc. and Binc.) shared the business limit in filing their returns for their 2000 taxation year. At their request,...
Subparagraph 152(4)(b)(iii)
See Also
Ho v. The Queen, 2010 DTC 1214, 2010 TCC 325
Webb, J. found that the Minister was not entitled to reassess the taxpayer on the basis that s. 75(2) imputed income of a family trust to the...
Shaw-Almex Industries Limited v. The Queen, 2009 DTC 1377 [at 2080], 2009 TCC 538
The taxpayer had obtained a guarantee by a Canadian bank of the liabilities of a US sister corporation ("Fusion") to a US bank. Fusion then became...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Loss v. Loss | 118 |
Administrative Policy
30 May 2019 Internal T.I. 2019-0806761I7 - Late filing of 88(1)(d) designation
S4-F7-C1, para. 1.40 indicates that it does not allow a late-filed s. 88(1)(d) designation where the particular eligible property to be bumped was...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 88 - Subsection 88(1) - Paragraph 88(1)(d) | late designation could be made for a statute-barred year that CRA was assessing within the expanded cross-border reassessment period | 311 |
13 August 2018 Internal T.I. 2018-0763611I7 F - Subpar 152(4)(b)(iii) and FAPI
The Canadian corporate “Taxpayer” contributed marketable securities to a wholly-owned controlled foreign affiliate ("ForeignCo") in exchange...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(4.01) - Paragraph 152(4.01)(b) - Subaragraph 152(4.01)(b)(iii) | reassessment of FAPI from marketable securities related to their previous contribution by the taxpayer | 231 |
16 January 2017 Internal T.I. 2016-0651411I7 - Reassessment period – transfer pricing
Two years after the normal reassessment period, a transfer-pricing adjustment (“TPA”) is made under s. 247(2) respecting sales of goods to a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Regulation 402 - Subsection 402(3) - Paragraph 402(3)(a) - Subparagraph 402(3)(a)(i) | reallocation of gross revenue consequential on s. 247(2) assessment | 96 |
14 July 2014 Internal T.I. 2014-0537701I7 F - Voluntary disclosure - T1134 and FAPI
In connection with a failure of a taxpayer to report foreign accrual property income, CRA noted that the application of s. 152(4)(a)(i) is a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(4) - Paragraph 152(4)(a) - Subparagraph 152(4)(a)(i) | no time limitation for s. 162(10) penalty | 139 |
| Tax Topics - Income Tax Act - Section 162 - Subsection 162(10) | s. 162(10) penalty for failure to file T1134s | 134 |
| Tax Topics - Income Tax Act - Section 162 - Subsection 162(7) | penalties under ss. 162(10), (10.1) or 163(2.4) for failure to file T1134s | 134 |
| Tax Topics - Income Tax Act - Section 163 - Subsection 163(2.4) | penalties for failure to file T1134s | 134 |
| Tax Topics - Income Tax Act - Section 220 - Subsection 220(3.1) | requirements where undisclosed FAPI | 212 |
22 April 2013 Internal T.I. 2013-0478121I7 - Application of 152(4)(b)(iii)
In noting that the extended reassessment period (respecting an assessment to increase the capital gain) applied to the sale by a Canadian...
5 December 2012 Internal T.I. 2012-0439301I7 F - Reassessment beyond the normal reassessment period
In a particular taxation year, a taxable Canadian corporation ("Canco") made a loan ("Loan") to a limited partnership ("LP") governed by...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 96 | partnership lacks power to contract debts | 208 |
22 March 2012 External T.I. 2011-0407731E5 - Application of Subparagraph 152(4)(b)(iii)
Regarding a hypothetical scenario where a wind-up of a Canadian subsidiary into a Canadian parent causes shares of a foreign subsidiary previously...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(4) - Paragraph 152(4)(c) | 173 |
Articles
Joint Committee, "Foreign Affiliate Dumping, Derivative Forward Agreement and Transfer Pricing Amendments Announced in the 2019 Federal Budget", 24 May 2019 Submission of the Joint Committee
- The amendment to s. 152(4)(b)(iii) should be made applicable to taxation years ending on or after March 19, 2019.
Clause 152(4)(b)(iii)
Administrative Policy
15 May 2024 IFA Roundtable Q. 5, 2024-1007581C6 - Late-filed PLOI election and reassessment of the affected taxation year(s)
Where a late-filed PLOI election is made prior to the three-year limitation period referred to in s. 15(2.12) or 212.3(12) but no reassessment is...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 212.3 - Subsection 212.3(12) | late filing of PLOI election is coupled with an extended reassessment period for the s. 17.1(1) deemed interest | 201 |
Subparagraph 152(4)(b)(v)
See Also
Wallster v. The King, 2022 TCC 124
The taxpayer was renounced Canadian exploration expense (CEE) by an issuer (Quattro) that the minister subsequently determined had substantially...
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| Tax Topics - Income Tax Act - Section 66 - Subsection 66(12.73) | Minister not directed to reduce the renounced amounts if the issuer failed to do so | 199 |
Subparagraph 152(4)(b)(iv)
Administrative Policy
16 July 2013 Internal T.I. 2013-0481151I7 - Application of 152(4)(b)(iv) and 110.5
Respecting whether s. 152(4)(b)(iv) would allow an assessment to be issued beyond the normal reassessment period in response to the taxpayer's...
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| Tax Topics - Income Tax Act - 101-110 - Section 110.5 | extended s. 152(4)(b)(iv) period/IC 84-1 | 217 |
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(4) | s. 110.5 addition | 79 |
9 December 2010 Internal T.I. 2010-0379801I7 - Additions to taxable income to utilize FTCs
After the normal reassessment period for its 2005 taxation year had expired, the company submitted a request for an addition to its 2005 taxable...
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| Tax Topics - Income Tax Act - 101-110 - Section 110.5 | non-extended adjustment period/84-1 not available | 284 |
Paragraph 152(4)(b.2)
Administrative Policy
10 June 2013 STEP Roundtable, 2013-0485761C6 - 2013 STEP CRA Roundtable Question 3
The extension of the normal reassessment period under draft s. 152(4)(b.2) - where (a) there has been a failure to file the T1135 as and when...
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| Tax Topics - Income Tax Act - Section 233.3 - Subsection 233.3(3) | 143 |
Paragraph 152(4)(c)
Cases
Kerry (canada) Inc. v. Canada (Attorney General), 2019 FC 377
The applicant (“Kerry Canada”) sought judicial review of a decision (the “Decision”) of the Minister denying Kerry Canada’s request that...
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| Tax Topics - Income Tax Act - Section 152 - Subsection 152(4) - Paragraph 152(4)(a) - Subparagraph 152(4)(a)(ii) | request to hold objections to subsequently nullified reassessments in abeyance constituted implied waiver | 273 |
Drautz v. The Queen, 96 DTC 6173 (FCTD)
Revenue Canada mailed a reassessment to the taxpayer within the normal reassessment period at the address that the taxpayer had most recently...
Lornport Investments Ltd. v. The Queen, 92 DTC 6231, [1992] 1 CTC 351, [1992] 1 CTC 354 (FCA)
A reassessment which was issued beyond the normal reassessment period therefore was invalid and did not supersede a previous reassessment which...
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| Tax Topics - Income Tax Act - Section 152 - Subsection 152(8) | 105 |
The Queen v. Canadian Marconi Co., 91 DTC 5626, [1991] 2 CTC 352 (FCA)
The Minister reassessed the 1977 to 1981 returns of the taxpayer on the basis that income from short-term securities was income from property...
Roywood Investments Ltd. v. The Queen, 79 DTC 5451, [1980] CTC 19 (FCTD), aff'd 81 DTC 5148, [1981] CTC 206 (FCA)
In reassessing the plaintiff's 1970 and 1971 taxation years, the Minister "took the position that the plaintiff was not entitled to reduce its...
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| Tax Topics - Income Tax Act - Section 68 | 67 | |
| Tax Topics - Income Tax Regulations - Regulation 1102 - Subsection 1102(1) - Paragraph 1102(1)(c) | land with building was acquired only for purpose of generating capital gain | 50 |
See Also
Perfect Fry Company Ltd. v. The Queen, 2007 DTC 588, 2007 TCC 133, aff'd supra 2008 DTC 6472, 2008 FCA 218
Paris J. indicated in obiter dicta that, when read in light of s. 152(1.2), s. 152(4) provided that the Minister may at any time determine the...
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| Tax Topics - Income Tax Act - Section 125 - Subsection 125(7) - Canadian-Controlled Private Corporation | 75 |
Denelzen v. The Queen, 97 DTC 456, [1996] 2 CTC 2464 (TCC)
The taxpayer was found to have been reassessed in the normal reassessment period notwithstanding that the notice of reassessment was never...
Administrative Policy
19 January 1996 External T.I. 9600625 - ASSESSMENT OF CDA
"The reassessment of the capital dividend account will not be subject to the normal reassessment period of three or four years under section 152...
30 March 1995 CTF Roundtable Q. 88, 9506016 - REVISED RESOURCE ALLOWANCE CLAIMS IN CLOSED YEARS
Discussion of whether producers in the oil and gas, and mining industries, may increase resource allowance claims in taxation years with a nil...
16 September 1991 T.I. (Tax Window, No. 9, p. 11, ¶1450)
Although RC will not normally accede to a request for a reassessment of a taxpayer's return solely on the basis of a successful appeal by another...
85 C.R. - Q.5
A listing of the limited circumstances in which RC will reassess without a proposal letter, and a discussion of pre-reassessment procedure.
Ha v. R., 2011 TCC 271
The registrant's assessment beyond the normal period, for unreported income of $91,232, $50,125, $64,540 and $66,596 in successive years, and...
22 March 2012 External T.I. 2011-0407731E5 - Application of Subparagraph 152(4)(b)(iii)
Regarding a hypothetical scenario where a wind-up of a Canadian subsidiary into a Canadian parent causes shares of a foreign subsidiary previously...
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| Tax Topics - Income Tax Act - Section 152 - Subsection 152(4) - Paragraph 152(4)(b) - Subparagraph 152(4)(b)(iii) | 171 |
21 March 2014 Internal T.I. 2013-0504491I7 - Change to loss application in a nil assessed year
In its original return, the taxpayer reduced its taxable income to nil through the carry-forward of non-capital losses. Outside the normal...
Subsection 152(4.2)
Administrative Policy
8 March 2016 Internal T.I. 2015-0614421I7 - Returns filed or amended by bankrupt taxpayer
The correspondent referred to s. 22 of the Bankruptcy and Insolvency Act (indicating that a trustee is not liable to make any return that the...
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| Tax Topics - Income Tax Act - Section 128 - Subsection 128(2) - Paragraph 128(2)(a) | authority of trustee to make s. 152(4.2) request does not preclude bnakrupt from doing so | 58 |