Subsection 220(1) - Minister’s duty
Cases
Canada (Attorney General) v. Collins Family Trust, 2022 SCC 26
Following the Sommerer decision, which caused a tax plan to cease to work, the Minister assessed trusts on the basis that dividends paid by...
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| Tax Topics - General Concepts - Rectification & Rescission | courts cannot exercise their equitable jurisdiction to reverse or alter a completed transaction to avoid unintended tax consequences | 360 |
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(1) | Minister required to assess based on an unexpected case law development | 365 |
Scotia Mortgage Corporation v Gladu, 2017 BCSC 1182
The petitioners, who as mortgagees had foreclosed on properties of non-resident debtors, petitioned by Court for a declaration that a purchaser...
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| Tax Topics - Income Tax Act - Section 116 - Subsection 116(5) | mortgagees of foreclosed property denied declaration that they were the vendors for s. 116 purposes | 135 |
The Queen v. Optical Recording Laboratories Inc., 90 DTC 6647, [1990] 2 CTC 524 (FCA)
The Minister has the power to enter into arrangements to give a taxpayer time for the payment of taxes which are currently due or, in this case,...
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| Tax Topics - Other Legislation/Constitution - Federal - Federal Courts Act - Section 29 | 117 | |
| Tax Topics - Income Tax Act - Section 171 - Subsection 171(1) | 69 |
See Also
R. v. I.R.C., Ex parte Preston, [1984] BTC 353 (C.A.)
"Although the Inland Revenue have a duty 'to collect and cause to be collected every part of inland revenue ... .' ... . they have a wide...
Subsection 220(2.1) - Waiver of filing of documents
Cases
Onex Corporation v. Canada (Attorney General), 2024 FC 1247
In 2014, Bill C-43, which amended the FAPI rules in relation to partnerships, provided that the new rules would apply to taxation years ending...
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| Tax Topics - Income Tax Act - Section 220 - Subsection 220(3) | CRA failed to consider, in light of the remedial nature of s. 220(3), that it could be used to permit an amended return that accomplished a late election not listed in Reg. 600 | 641 |
| Tax Topics - Statutory Interpretation - Interpretation Act - Section 42 - Subsection 42(3) | s. 220(2.1) permitted the waiver of an election under an amending Bill itself | 138 |
Walsh v. Canada (Attorney General), 2018 FCA 229
In 1998, the appellant entered into a departure trade transaction with a Canadian bank (“CIBC”), which was designed to create an interest...
Bonnybrook Industrial Park Development Co. Ltd. v. Canada (National Revenue), 2018 FCA 136
In 2015, Bonnybrook, a private corporation, disclosed unreported income under the voluntary disclosure program by filing income tax returns for...
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| Tax Topics - Income Tax Act - Section 220 - Subsection 220(3) | Minister had the discretion under s. 220(3) to extend the time for applying for a dividend refund | 545 |
| Tax Topics - Income Tax Act - Section 129 - Subsection 129(1) | CRA had discretion to extend 3-year deadline | 142 |
Canada (National Revenue) v. ConocoPhillips Canada Resources Corp., 2017 FCA 243
The taxpayer (“ConocoPhillips”) claimed that it did not learn about a reassessment of its 2000 taxation year (which nullified a previous...
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| Tax Topics - Income Tax Act - Section 166.1 - Subsection 166.1(7) - Paragraph 166.1(7)(a) | Parliament intended a strict one-year limitation | 113 |
| Tax Topics - Statutory Interpretation - Specific v. General Provisions | specific time limitation rule in s. 166.1 was implied exception to the general waiver rule in s. 220(2.1) | 289 |
ConocoPhillips Canada Resources Corp. v. Canada (National Revenue), 2016 DTC 5016 [at 6588], 2016 FC 98, 2017 FCA 243 rev'd
The taxpayer (“ConocoPhillips”) claimed that it did not learn about a reassessment of its 2000 taxation year (which nullified a previous...
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| Tax Topics - Income Tax Act - Section 165 - Subsection 165(1) | Minister can consider reassessment without Notice of Objection | 216 |
| Tax Topics - Statutory Interpretation - French and English Version | ambiguity in French version resolved through English version | 222 |
Bul River Mineral Corporation Ltd. v. Canada (Minister of National Revenue), 2006 DTC 6048, 2006 FC 41
S. 47(1) of the Income Tax Act (BC) provided that s. 220(2.1) of the Act applied for the purposes of the former Act. The Minister was not...
Administrative Policy
17 May 2023 IFA Roundtable Q. 2, 2023-0964301C6 - Ukraine Russia FAs and Tax Reporting
Will CRA grant any administrative relief in relation to the reporting requirements of Canadian multinationals for their subsidiaries in the...
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| Tax Topics - Income Tax Act - Section 233.5 | failure to file complete information for affiliate in war-torn country | 134 |
21 September 2021 Internal T.I. 2019-0807491I7 - Subsections 93.1(5) and (6)
Interest paid in 2011 and 2012 by a foreign affiliate (USOpco) of Canco to an LLC that was held by Canco through a subsidiary US partnership (USP)...
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| Tax Topics - Income Tax Act - Section 93.1 - Subsection 93.1(5) | access to ss. 93.1(5) and (6) needed for a US partnership to be considered to have a qualifying interest in a sister Opco paying it interest | 279 |
| Tax Topics - Income Tax Act - Section 220 - Subsection 220(3.2) | no extension can be made under s. 220(3.2) for an election not listed in Reg. 600, or through the back door under s. 220(2.1) | 262 |
9 July 2015 External T.I. 2013-0475421E5 - Section 94.2
Where s. 94.2(2) deems a non-resident unit trust whose units are majority-owned by an investment dealer, or other taxpayer subject to the...
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| Tax Topics - Income Tax Act - Section 233.5 | potential relief from penalties where insufficient data for computing FAPI | 195 |
| Tax Topics - Income Tax Act - Section 94.2 - Subsection 94.2(2) | deemed CFA unit trust sub of a FI subject to mark-to-market rules | 178 |
| Tax Topics - Income Tax Act - Section 95 - Subsection 95(2) - Paragraph 95(2)(f.14) | no stated accommodation for using proxy method where data unavailable | 289 |
25 April 2014 Internal T.I. 2014-0521541I7 - Requirement for Crown corporations to file T2
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| Tax Topics - Income Tax Act - Section 150 - Subsection 150(1) - Paragraph 150(1)(a) | Crown corporations T2 exemption | 0 |
8 October 2008 Internal T.I. 2008-0269581I7 - statute-barred refund
The corporate taxpayer requested that CRA exercise its discretion under s. 220(2.1) or 220(3) to refund an overpayment where the taxpayer had not...
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| Tax Topics - Income Tax Act - Section 164 - Subsection 164(1.5) | "may" establishes CRA discretion | 128 |
| Tax Topics - Income Tax Act - Section 164 - Subsection 164(1) | request to extend filing deadline or re-appropriate | 106 |
| Tax Topics - Income Tax Act - Section 220 - Subsection 220(3) | request to extend filing deadline | 70 |
| Tax Topics - Income Tax Act - Section 221.2 - Subsection 221.2(1) | request to re-appropriate | 88 |
Subsection 220(2.2)
Administrative Policy
22 December 2009 Internal T.I. 2009-0343331I7 F - Determination of CCPC Status
A Quebec corporation initially filed on the basis that it was not a Canadian –controlled private corporation, and the sought to amend its SR&ED...
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| Tax Topics - Income Tax Act - Section 125 - Subsection 125(7) - Canadian-Controlled Private Corporation | shareholder agreement affecting how the majority of directors exercised their rights was not a USA | 362 |
| Tax Topics - Income Tax Act - Section 256 - Subsection 256(5.1) | de facto control given control of financing and significant influence on decisions | 222 |
Subsection 220(3) - Extensions for returns
Cases
Onex Corporation v. Canada (Attorney General), 2024 FC 1247
In 2014, Bill C-43, which amended the foreign accrual property income regime respecting partnerships, provided that the new rules would apply to...
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| Tax Topics - Income Tax Act - Section 220 - Subsection 220(2.1) | CRA should consider, in light of the remedial nature of ss. 20(2.1) and (3), that they could be used to accommodate a late election not listed in Reg. 600 | 615 |
| Tax Topics - Statutory Interpretation - Interpretation Act - Section 42 - Subsection 42(3) | s. 220(2.1) permitted the waiver of an election under an amending Bill itself | 138 |
Bonnybrook Park Industrial Development Co. Ltd. v. Canada (National Revenue), 2023 FCA 145
For its 2003 to 2015 taxation years, the taxpayer (“Bonnybrook”) did not file corporate tax returns and, consequently, was not entitled to...
Osborne v. Canada (Attorney General), 2022 FC 122
The taxpayers, who were residents of Bermuda owning a Canadian rental property, filed their returns for 2018 under s. 216 nine days after the...
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| Tax Topics - Income Tax Act - Section 216 - Subsection 216(4) | CRA failed to explain why it did not extend the return-filing deadline under s. 216(4) | 252 |
Masson v. Canada (Attorney General), 2019 FC 887
In 2008, the taxpayer transferred five properties to his corporation and did not report any disposition or gain in his return. Following a...
Bonnybrook Industrial Park Development Co. Ltd. v. Canada (National Revenue), 2018 FCA 136
In 2015, Bonnybrook, a private corporation, disclosed unreported income under the voluntary disclosure program by filing income tax returns for...
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| Tax Topics - Income Tax Act - Section 220 - Subsection 220(2.1) | failure of the Minister, on application for s. 220(3) relief, to consider the request for s. 220(2.1) relief | 261 |
| Tax Topics - Income Tax Act - Section 129 - Subsection 129(1) | CRA had discretion to extend 3-year deadline | 142 |
Binder Capital Corp v. Canada (National Revenue), 2017 FC 642, effectively rev'd 2018 FCA 136
In 1057513, Webb JA found that a corporation was ineligible for dividend refunds for various years because it did not file the returns claiming...
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| Tax Topics - Income Tax Act - Section 129 - Subsection 129(1) | Federal Court lacks jurisdiction to overturn CRA decision not to extend s. 129(1) refund-claim deadline | 275 |
Kutlu v. Canada, 2013 DTC 5137 [at 6239]
The Minister had previously accepted the taxpayers' late-filed elections under s. 216(4). The taxpayers had believed they were entitled to file...
See Also
Lachance v. Canada (National Revenue), 2018 FC 925
The GST/HST Guide on the new housing rebate indicated that an Ontario new housing rebate was available in circumstances where the federal rebate...
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| Tax Topics - Excise Tax Act - Section 256 - Subsection 256(3) - Paragraph 256(3)(b) | CRA permitted to deny extension to taxpyayer who was confused by unpacked wording in CRA Guide | 338 |
Hughes v. The Queen, 2017 TCC 95 (Informal Procedure)
After finding that the Crown had failed to advance evidence that the taxpayer had filed a return within the time demanded of him by CRA, so that...
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| Tax Topics - Income Tax Act - Section 162 - Subsection 162(2) | no penalty if return filed within period demanded | 283 |
| Tax Topics - Statutory Interpretation - French and English Version | more lenient French version of the repeated-failure-to-file penalty in s. 162(2) preferred to English version | 87 |
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...
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| Tax Topics - Income Tax Act - Section 152 - Subsection 152(4) - Paragraph 152(4)(a) - Subparagraph 152(4)(a)(i) | misrepresentation (a repeated failure to file returns) could not ground CRA reassessments, beyond the normal reassessment period, to reduce arbitrary assessments made by it | 253 |
| 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 |
COVID-19 Update: Additional measures from the Canada Revenue Agency 26 March CRA News Release
The Canada Revenue Agency (CRA) understands that individuals and businesses might be dealing with difficulties filing their income and benefit...
16 May 2018 IFA Roundtable Q. 4, 2018-0748171C6 - Penalties for Non-Residents
A non-resident corporation files a T2 return, attaching a completed Sched. 91 (claiming a treaty-based exemption) based on a reasonable belief...
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| Tax Topics - Income Tax Act - Section 247 - New - Subsection 247(4) | potential extension/waiver where incorrect (no PE) claim for Treaty relief | 105 |
8 October 2008 Internal T.I. 2008-0269581I7 - statute-barred refund
The corporate taxpayer requested that CRA exercise its discretion under s. 220(2.1) or 220(3) to refund an overpayment where the taxpayer had not...
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| Tax Topics - Income Tax Act - Section 164 - Subsection 164(1.5) | "may" establishes CRA discretion | 128 |
| Tax Topics - Income Tax Act - Section 164 - Subsection 164(1) | request to extend filing deadline or re-appropriate | 106 |
| Tax Topics - Income Tax Act - Section 220 - Subsection 220(2.1) | request to extend filing deadline | 70 |
| Tax Topics - Income Tax Act - Section 221.2 - Subsection 221.2(1) | request to re-appropriate | 88 |
12 July 2013 Internal T.I. 2013-0487181I7 - Extension of the reassessment period
The corporate taxpayer failed to file a tax return and the CRA subsequently issued an "arbitrary assessment" pursuant to s. 152(7). The taxpayer...
30 June 2010 External T.I. 2009-0327881E5 F - FFCP Délai de production T3
What are the T3 filing deadlines for mutual fund trusts following a qualifying exchange where there is a continuing trust and a trust that...
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| Tax Topics - Income Tax Regulations - Regulation 204 - Subsection 204(2) | s. 132.1 merger accelerates T3 return-filing deadline | 92 |
| Tax Topics - Income Tax Regulations - Regulation 204.1 - Subsection 204.1(2) | no requirement to file with CDS if MFT is not listed | 49 |
Subsection 220(3.1) - Waiver of penalty or interest
Cases
Milgram Foundation v. Canada (Attorney General), 2024 FC 1405
Milgram, a Liechtenstein-resident trust that had determined that it might be a deemed resident under s. 94, made a 2015 filing under the CRA...
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| Tax Topics - Other Legislation/Constitution - Federal - Federal Courts Act - Section 18.5 | Federal Court had the jurisdiction to quash an abusive decision of CRA to assess, even though the resulting assessment was objected to | 710 |
Cassidy v. Canada (Attorney General), 2024 FC 174
The taxpayer requested interest relief under s. 220(3.1) primarily based on his inability to pay due to financial hardship resulting from his...
Maverick Oilfield Services Ltd. v. Canada (Attorney General), 2023 FC 1728
The applicants were an Alberta oilfield service company and a trucking company, each owned equally by Mr. Schnell and his spouse, and directed by...
Thomas v. Canada (Attorney General), 2023 FC 1110
The taxpayer’s request for waiver of interest and penalties regarding her late filing of T1135 forms, based on the medical situation of her and...
Canada v. Bowker, 2023 FCA 133
The taxpayer had a s. 163(2) penalty vacated in the Tax Court on the basis that her involvement in the false amended return filed by her was...
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| Tax Topics - Income Tax Act - Section 162 - Subsection 162(7) - Paragraph 162(7)(b) | s. 162(7)(b) did not apply where return was timely filed but negligently completed | 342 |
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(1) | Galway principle required that a case not be settled on a basis fundamentally at odds with the Minister’s view of the facts and law | 348 |
| Tax Topics - Other Legislation/Constitution - Federal - Tax Court of Canada Rules (General Procedure) - Section 147 - Subsection 147(3) | no support for establishing a 50% to 75% range of solicitor-client costs/ settlement offer contravened Galway principle and was to be ignored | 376 |
| Tax Topics - Statutory Interpretation - Noscitur a Sociis | noscitur a sociis principle applied to limit a provision to matters not addressed in a sister provision | 107 |
| Tax Topics - General Concepts - Judicial Comity | judicial comity would require the Court to justify its departure from the finding of another judge of the same court on the same question | 67 |
Barrs v. Canada, 2022 FCA 147
A group of taxpayers, who were the victims of a tax fraud, i.e., purported partnerships giving rise to large reported losses in the mid-1980s...
Christen v. Canada (Revenue Agency), 2021 CF 1440
In May 2015, the plaintiff authorized her law firm to represent her in making a voluntary disclosure of her Swiss assets, and in the summer and...
4053893 Canada Inc. v. Canada (National Revenue), 2021 FC 218
Both the corporate taxpayer (“405 Canada”) and its sole shareholder (“Mr. Harris”) failed to file tax returns for about a decade. In...
Belchetz v. Canada, 2020 FCA 225, aff'g sub nom. Brandimarte v. Canada, 2019 FC 1034
Taxpayers who were the “innocent dupes” (para. 10) of a tax fraud, i.e., purported partnerships giving rise to large reported losses in the...
Building Products of Canada Corp. v. Canada (Attorney General), 2020 FC 784
In 2014, CRA reassessed the taxpayer’s 2009 taxation year to deny SR&ED deductions or credits, thereby resulting in $1,510,198.00 in unpaid...
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| Tax Topics - Income Tax Act - Section 152 - Subsection 152(6) | failure of Minister's delegate to ask taxpayer whether it wished to reduce assessed income with NCLs | 236 |
Grewal v. Canada (National Revenue), 2020 FC 356
In disclosures made under a voluntary disclosure initiated on April 4, 2014, the taxpayer included references to a number of loans made between...
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| Tax Topics - Income Tax Act - Section 163 - Subsection 163(2) | an accepted voluntary disclosure that included loans did not stop CRA from later assessing s. 163(2) penalties for failure to include them in income | 210 |
Loyer (Succession) v. Canada (Attorney General), 2019 FC 1528
The applicant was the succession (i.e., estate) of an individual who was suspected of being the head of a drug trafficking ring, and who had been...
Stover v. Canada (National Revenue), 2019 FC 1599
In 2008 the CRA contacted the taxpayer to ask him to provide supporting documents to prove commission expenses for the 2005 to 2006 taxation...
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| Tax Topics - Income Tax Act - Section 166.1 - Subsection 166.1(5) | CRA ordered to consider waiver of interest due to its failure to respond to late Notice of Objection with all due dispatch | 272 |
Chen v. Canada (Attorney General), 2019 FC 1435
The applicant was assessed a penalty for late filing her T1135 return on foreign property for the preceding taxation year, but the penalty was...
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| Tax Topics - Income Tax Act - Section 162 - Subsection 162(7) | acceptance of CRA suggestion of filing a T1135 with estimates to avoid late-filing penalty | 104 |
Brandimarte v. Canada, 2019 FC 1034, af'd sub nom. Belchetz v. Canada, 2020 FCA 225
Starting in the 1984 year, Applicants claimed losses from partnerships that in fact had no business. Ultimately, charges were laid against the...
Polubiec v. The Queen, 2019 TCC 146
A retired investment dealer had, over a number of years, failed to report around 15 items of dividend or other investment income (some of them,...
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| Tax Topics - Income Tax Act - Section 163 - Subsection 163(1) | unreasonable to rely on tax advice of an investment rep | 445 |
1680169 Ontario Limited v. Canada (Attorney General), 2019 FC 562
Mr. Hogg, was the sole director, officer and shareholder of the appellant (“169”). Mr. Hogg noticed irregularities with 169’s tax returns...
Prince v. Canada (National Revenue), 2019 FC 348, aff'd 2020 FCA 32
Annis J found that a CRA “fairness” letter to the taxpayer setting out proposed reassessments for his 2007 to 2016 taxation years and giving...
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| Tax Topics - Other Legislation/Constitution - Federal - Federal Courts Act - Section 18.1 - Subsection 18.1(3) | 30-day letter was not a judicially-reviewable “decision” | 328 |
Klopak v. Canada (Attorney General), 2019 FC 235
The taxpayer (the Applicant) was a self-employed sound engineer who worked as an independent sub-contractor to the US limited partnership for a...
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| Tax Topics - Income Tax Act - Section 162 - Subsection 162(1) | voluntary disclosure of FTC adjustment resulted in penalty | 237 |
4053893 Canada Inc. v. Canada (National Revenue), 2019 FC 51
In August 2016, CRA wrote the sole shareholder (Mr. Harris) of the applicant (“405”) advising him of his obligation to file personal income...
Takenaka v. Canada (Attorney General), 2018 FC 347
In 2014, the taxpayer filed returns for 2011, 2012 and 2013 in order to claim the Canada child tax benefit (“CCTB”), together with a T1135...
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| Tax Topics - Income Tax Act - Section 162 - Subsection 162(7) | CRA delegate failed to consider that, as there was no obligation to file a nil Part I tax return, it was reasonable not to timely file a T1135 | 194 |
| Tax Topics - Income Tax Act - Section 150 - Subsection 150(1.1) - Paragraph 150(1.1)(b) | no requirement for individual with nil Part I tax liability to timely file T1 | 233 |
Morrison v. Canada (Attorney General), 2018 FC 141
The taxpayer's return failed to report employment income of $47,770. His accountant confirmed to CRA that it had been his mistake in somehow...
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| Tax Topics - Income Tax Act - Section 163 - Subsection 163(1) | no relief where taxpayer could not explain not noticing missing T4 | 64 |
Gauthier v. Canada (National Revenue), 2017 FC 1173
The applicant transferred $300,000 to a Bahamas bank account in 1978. In order to put his affairs in order so as to not create difficulties for...
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| Tax Topics - Other Legislation/Constitution - Federal - Federal Courts Act - Section 18.5 | taxpayer seeking an injunction prohibiting a reassessment should follow the normal challenge process | 224 |
Matthew Boadi Professional Corporation v. Canada (Attorney General), 2018 FC 53
On March 17, 2015, the taxpayer, which was a Canadian corporation that had held land in Ghana at all relevant times, submitted T1135 returns for...
Muir v. Canada (National Revenue), 2016 FC 362
In dismissing an application for judicial review of a CRA decision not to grant interest or penalty relief for an assessment of a year for which...
Kotel v. Canada (Attorney General), 2013 DTC 5166 [at 6421], 2013 FC 1015
McVeigh found that it was reasonable for the Minister find that the taxpayer did not have financial hardship. His net worth was $295,000...
Suissa v. Canada (Attorney General), 2013 DTC 5158 [at 6383], 2013 FC 897
The taxpayers were six family members, each of whom owned a small percentage of some properties in Canada, which were sold at a loss over two...
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| Tax Topics - Income Tax Act - Section 162 - Subsection 162(7) | penalties on six family members were reasonable but probably unjust | 200 |
Cogesco Services Limited v. Canada (Attorney General), 2014 DTC 5026 [at 6661], 2013 FC 1238
The taxpayer, which was a non-resident corporation that had no liability for tax as a result of losses, was assessed for $15,000 of penalties...
Canada v. Guindon, 2013 DTC 5133 [at 6117], 2013 FCA 153, aff'd supra
The taxpayer provided grossly negligent opinions on a charitable donation scheme (which unbeknownst to her was a scam) and signed charitable...
NRT Technology Corp v. Canada (Attorney General), 2013 DTC 5056 [at 5816], 2013 FC 200
The taxpayer failed to withhold income tax on a bonus it paid to its president, but caught the error 11 days later without any CRA involvement. ...
3563537 Canada inc. v. Canada Revenue Agency, 2013 DTC 5025 [at 5622], 2012 FC 1290
The taxpayer's voting shares were held mainly by a pair of business associates ("Ouimet and O'Neill"). O'Neill was responsible for preparing the...
T & S First Choice Renovations Limited v. Canada Revenue Agency, 2012 DTC 5152 [at 7377], 2012 FC 1146
The taxpayer appealed the Minister's decision to deny relief of interest on corporate tax, payroll deductions, and GST accounts. Phelan J. stated...
Taylor v. Canada (National Revenue), 2012 DTC 5141 [at 7315], 2012 FC 994
In a previous hearing, the Federal Court ordered a redetermination of taxpayer's application for s. 220(3.1) relief. Martineau J. affirmed the...
Mytting v. Canada (National Revenue), 2012 DTC 5084 [at 6996], 2012 FC 465
The taxpayer had accumulated interest from a tax debt in a prior taxation year. He applied for relief from the interest on the basis that the...
Spence v. Canada Revenue Agency, 2012 DTC 5061 [at 6872], 2012 FCA 58
The taxpayer reported $22,000 of income when his income was in fact $60,000. The Court affirmed that the Minister's decision not to waive the...
Toastmaster Inc. v. Canada (National Revenue), 2012 DTC 5008 [at 6555], 2011 FC 1309, aff'd 2013 DTC 5017 [at 5601], 2012 FCA 317
The taxpayer was a U.S. resident which operated in Canada from 1999 to 2008, under the misapprehension that it did not have a permanent...
Stemijon Investments Ltd. v. Canada (Attorney General), 2011 DTC 5169 [at 6250], 2011 FCA 299
The taxpayers had the same financial representative, who failed to file foreign property ownership form T1135 for several taxation years, even...
Bozzer v. Canada, 2011 DTC 5106 [at 5922], 2011 FCA 186
The trial judge found that the "taxation year" referred to in s. 220(3.1) is the year of assessment of the related tax debt and not the year in...
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| Tax Topics - Statutory Interpretation - Vested Rights | 114 |
Jaka Holdings Ltd. v. Canada Revenue Agency, 2011 DTC 5081 [at 5831], 2011 FC 518
Heneghan J. found that a decision from a second-level CRA review of the taxpayer's request to waive interest and penalties breached the taxpayer's...
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| Tax Topics - Excise Tax Act - Section 281.1 - Subsection 281.1(1) | 66 |
Bozzer v. Canada, 2010 DTC 5025 [at 6612], 2010 FC 139, rev'd 2011 DTC 5106 [at 5922], 2011 FCA 186
The taxpayer argued that the 10-year limitation period in s. 220(3.1) commences with each year in which interest accrues, rather than the year of...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Stare Decisis | 33 | |
| Tax Topics - Statutory Interpretation - Consistency | 299 |
Canada Revenue Agency v. Telfer, 2009 DTC 5697, 2009 FCA 23
Following the filing of notices of objection by the taxpayer respecting the denial of the deduction of limited partnership losses, the Minister...
Vitellaro v. Canada (Customs and Revenue Agency), 2005 DTC 5275, 2005 FCA 166
After the Minister refused to waive interest and penalties in an application based on financial hardship, the matter was referred back to the...
Johnston v. The Queen, 2003 DTC 5494 (FCA)
The decision of the Minister to deny an application for cancellation of interest was remitted to the Minister for reconsideration given that the...
Montgomery v. MNR, 94 DTC 6367, [1994] 2 CTC 57 (FCTD), aff'd 95 DTC 5032 (FCA)
S.127(5) of S.C. 1993, c. 24, which effectively provides that s. 220(3.1) "applies to the 1985 and subsequent taxation years" indicates that s....
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| Tax Topics - General Concepts - Transitional Provisions and Policies | 115 |
Hillier v. Attorney General of Canada, 2000 DTC 6627 (FCTD)
The time taken to complete the initial reassessment of the taxpayer (from January 1994 to the spring of 1995) was not unreasonable given that the...
See Also
Fortier v. Canada (Attorney General), 2022 CF 374
When the plaintiff’s application for the Canada emergency response (CERB) benefit was initially declined, he provided supplementary documents to...
Sangha v. Canada (Attorney General), 2020 FC 712
Mr. Sangha entered the 2017 taxation year having made excess contributions to his TFSA, but then withdrew all the funds two months before received...
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| Tax Topics - Income Tax Act - Section 207.06 - Subsection 207.06(1) | failure of delegate’s decision to address taxpayer’s submissions and conditions in s. 207.06(1) | 481 |
Canada (Minister of Citizenship and Immigration) v. Vavilov, 2019 SCC 65
The standards to be applied in the judicial review of administrative decisions have been revised. Generally, administrative decisions are to be...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Other Legislation/Constitution - Federal - Federal Courts Act - Section 18.1 - Subsection 18.1(2) | correctness appellate standard for questions of law not generally applicable to s. 18.1 reviews | 984 |
| Tax Topics - General Concepts - Stare Decisis | prior decisions can be departed from where this will reduce uncertainty | 254 |
| Tax Topics - Statutory Interpretation - Consistency | presumption of consistent expression | 138 |
| Tax Topics - Statutory Interpretation - Ordinary Meaning | administrative decisions must have regard to the provision’s text, context and purpose | 222 |
Agence du revenu du Québec v. Schwartz, 2019 QCCA 2068
The judge cancelled part of the interest included in the ARQ assessment (and imposed under s. 28 of the Act respecting the Ministère du Revenu...
1092072 Ontario Inc. (carrying on business as Elfe Juvenile Products) v. ARQ, 2017 QCCS 5369
The ARQ had the same published policy as CRA that it will consider cancelling the interest in excess of 4% for a failure to collect and remit...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 281.1 - Subsection 281.1(1) | the wash-trading guidelines being too rigid, ARQ was directed to consider whether interest below 4% should be cancelled | 601 |
Canada (National Revenue) v. Sifto Canada Corp., 2014 DTC 5083 [at 7090], 2014 FCA 140
The taxpayer's Federal Court motion alleged that the Minister had accepted disclosures made by it respecting the transfer prices of rock salt it...
Knight v. The Queen, 2012 DTC 1144 [at 3300], 2012 TCC 118 (Informal Procedure)
Jorré J. found that the taxpayer, having no reasonable excuse for his failure to report over $40,000 in salary and severance pay, being nearly...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 163 - Subsection 163(1) | penalties would have been less for more blameworthy conduct | 185 |
Sherry v. Canada (National Revenue), 2011 DTC 5168 [at 6247], 2011 FC 1208
Simpson J. found that the Minister's decision to deny relief was not given with adequate reasons, but the taxpayer could not establish that it was...
Meier v. Canada Revenue Agency, 2011 DTC 5127 [at 6071], 2011 FC 840
Simpson J. granted the taxpayer's appeal for interest relief. The taxpayer, a single mother of three, had an annual income of $11,654. She was...
Yachimec v. Canada (National Revenue), 2011 DTC 5014 [at 5575], 2010 FC 1333
The taxpayer suffered a brain injury in a vehicle collision, causing him to eventually develop paranoid delusions, including the delusion that the...
Fleet v. Canada (Attorney General), 2010 DTC 5094 [at 6912], 2010 FC 609
An application for judicial review of a decision of the Minister to not waive interest and penalties on tax payable by the taxpayer as a result of...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Statutory Interpretation - Interpretation Bulletins, etc. | 57 |
Cayer v. Canada Revenue Agency, 2009 DTC 5191 [at 6278], 2009 FC 1195
The CRA, after granting a previous request of the taxpayer for interest relief in respect of some of the taxation years in question, declined to...
Iszcenko v. The Queen, 2009 DTC 794, 2009 TCC 229 (Informal Procedure)
Hogan, J. recommended (para. 13) that the Minister waive a penalty under s. 163(1) given that the non-reporting of dividend income received by the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 163 - Subsection 163(1) | 82 |
Laflamme v. Canada (National Revenue), 2010 DTC 5070 [at 6794], 2008 FC 1403
The taxpayer lost three family members, including her husband, in the course of a few years, her tax accountant died of cancer, her son became...
Comeau v. CCRA, 2008 DTC 6248, 2005 DTC 5489
The trial judge had applied a standard of patent unreasonableness in reviewing a decision of the Agency not to cancel interest, whereas it was...
Bremer v. Canada (Attorney General), 2006 DTC 6125, 2006 FC 91
After indicating (following Lanno v. The Queen, 2005 DTC 5245, 2005 FCA 153) that the applicable standard of review was one of reasonableness,...
Lund v. Canada (Attorney General), 2006 DTC 6367, 2006 FC 640
The individual responsibility for a fairness review had done very little independent review of the evidence and had relied heavily on what was...
Cole v. Canada (Attorney General), 2005 DTC 5667, 2005 FC 1445
Assessments of the taxpayer's 1987 and 1988 taxation years was delayed by the Minister because of appeal proceedings of a procedural nature...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 169 - Subsection 169(1) | 82 |
Babin v. Canada (Customs and Revenue Agency), 2005 DTC 5414, 2005 FC 972
Before dismissing an application for judicial review of a decision of the CCRA not to waive interest and penalties in respect of the failure of...
Karia v. Canada (Minister of National Revenue), 2005 DTC 5282, 2005 FC 639
On the basis of a "no-names" disclosure on behalf of the taxpayers that they had unreported income and that the individual taxpayer had been...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Statutory Interpretation - Interpretation Bulletins, etc. | 86 |
HealthSmith Medical Inc. v. Canada (Minister of National Revenue), 2005 DTC 5138, 2005 FC 239
The Minister had not acted unreasonably in refusing an application for waiver of interest and penalties on the basis of financial hardship, on the...
Galetzka v. Canada (Minister of Customs and Revenue), 2004 DTC 6472, 2004 FC 672
The taxpayer lived separate and apart from her husband under the same roof for economic reasons, her estranged husband did not give her any money...
Vitellaro v. Canada (Customs and Revenue Agency), 2004 DTC 6362, 2004 FC 561
Before finding that a decision of the Minister not to waive interest and penalties on unpaid GST and income tax of the taxpayers did not breach a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 281.1 - Subsection 281.1(1) | 67 |
Miller v. Canada(Customs & Revenue Agency), 2004 DTC 6057, 2004 FC 46
The Minister's decision not to waive penalties for the late filing of a return was remitted for redetermination given that such decision did not...
Heels v. Canada (Attorney General), 2003 DTC 5712, 2003 FC 1346 (FCTD)
The Minister's decision not to grant relief from interest and penalties for the late filing of returns was not patently unreasonable given that...
Maarsman v. Canada (Customs and Revenue Agency), 2003 DTC 5677, 2003 FC 1234
The decision of the Minister not to cancel interest and penalties was referred back to CCRA for reconsideration based on there having been a...
Brickenden v. CCRA, 2003 DTC 5559 (FCTD)
The decision of a committee not to grant administrative relief was based on incomplete and incorrect information, and overruled the finding of the...
Chriscon Investments Ltd. v. Attorney General of Canada, 2003 DTC 5332 (FCTD)
The taxpayer agreed to a reassessment of its taxes that disallowed a deduction of $170,000 but offset the resulting income inclusion through the...
Netupsky v. The Queen, 2003 DTC 5324 (FCTD)
The taxpayer's application for relief based on his being "de facto bankrupt" was rejected by a CCRA officer who did not have appropriate delegated...
Robertson v. MNR, 2003 DTC 5068 (FCTD)
The taxpayer applied for waiver of a penalty for filing one of his returns a year late and of interest on the basis of the financial difficulties...
Metro-Can Construction Ltd. v. The Queen, 2002 DTC 7528 (FCTD)
In response to an argument that there were large gaps in the timeline between the time of the initial reassessment in 1993 and the final decision...
Salomon v. Deputy Attorney General of Canada, 2002 DTC 7525 (FCTD)
After being informed of the impact of the taxpayer's disbarment and criminal conviction on his daily living and responsibilities, the CCRA had...
Chapman v. MNR, 2002 DTC 2148 (FCTD)
An application for judicial review, of a decision to waive only a portion of the interest and penalties applicable to personal income tax...
Cheng v. The Queen, 2001 DTC 5575 (FCTD)
Gibson J. applied (at p. 5579) "a standard of review of patent unreasonableness" in dismissing an application for review of an adverse decision of...
Robertson v. MNR, 2001 DTC 5465 (FCTD)
In considering the applicant's application for waiver of interest and penalties, the Department breached its internal guidelines by having the...
Moffett Estate v. MNR, 2001 DTC 5284 (FCTD)
In dismissing an application of the taxpayers for judicial review of a decision to refuse their application for waiver of interest, Heneghan J....
Bilida v. Minister of National Revenue, 97 DTC 5041, [1997] 2 CTC 143 (FCTD)
The Minister was directed to reconsider the request of the taxpayer for waiver of interest given that no consideration had been given to: her to...
Catahan v. MNR, 95 DTC 5496 (FCTD)
An alleged agreement of a collections officer that interest would be waived if the taxpayer paid the taxes payable by him, would not have been...
Kaiser v. The Queen, 95 DTC 5187 (FCTD)
Rouleau J. declined to set aside the decision of the Minister refusing to grant relief under s. 220(3.1) given the absence of bad faith on the...
Guimont v. MNR, 94 DTC 6227, [1994] 1 CTC 353 (FCTD)
In dismissing the taxpayer's application to set aside a decision of the Chief of Appeals to vacate part only, and not entirely, interest on the...
Towers v. The Queen, 94 DTC 6118 (FCTD)
As a result of the fraud of his accountant, the taxpayer was induced to make tax shelter investments and to deduct what proved to be non-existent...
Floyd Estate v. MNR, 93 DTC 5499, [1993] 2 CTC 322 (FCTD)
In finding that the Minister had not acted unfairly in refusing to waive interest that arose as a result of a clerical error of the taxpayer,...
Administrative Policy
26 March 2024 Internal T.I. 2023-0974091I7 - Interaction between s. 220(3.1) and 227.1(1)
A corporation was assessed in its 2007, 2008 and 2010 taxation years regarding unremitted source deductions for its 2006 to 2009 taxation years...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 227.1 - Subsection 227.1(1) | assessment of a director under s. 227.1 does not restart the 10-year limitation on relief under s. 220(3.1) | 131 |
7 October 2020 APFF Financial Strategies and Instruments Roundtable Q. 3, 2020-0848761C6 F - Réorganisations de sociétés étrangères avec dérivation admissibles
After noting that it was expanding its webpage listing “eligible distributions,” by showing the date of the distribution in addition to the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 86.1 - Subsection 86.1(2) - Paragraph 86.1(2)(f) | CRA is now disclosing the transaction date for eligible distributions | 108 |
15 December 2017 Information Circular - IC00-1R6 - Voluntary Disclosures Program
Effective March 1, 2018
2. This information circular applies to VDP applications received on or after March 1, 2018 ... . In order for a taxpayer...
20 November 2017 CTF Annual Conference Panel on Issues in Administration and Enforcement
Q.1 CRA explained that a major driver in its decision to make the voluntary disclosure program more stringent (along with pressure from the...
22 February 2017 Government Response to the Sixth Report of the Standing Committee on Finance entitled: The Canada Revenue Agency, Tax Avoidance and Tax Evasion: Recommended Actions
Recommendation 1: rulings
CRA will complete a review of its advance tax rulings process by March 31, 2017, including of the Pre-ruling...
10 June 2016 STEP Roundtable Q. 6, 2016-0641461C6 - Trust Instalment Requirements
After a review announced two years ago (see 2014-0526591C6), CRA indicated that its policy of not assessing penalties and interest where an inter...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 156 - Subsection 156(1) | inter vivos trusts not assessed interest for inadequate instalment payments | 71 |
May 2016 Alberta CPA Roundtable, Q.4
The amended version of s. 163(1) applies to penalties assessed for the 2015 and subsequent taxation years. To what extent is CRA exercising its...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 163 - Subsection 163(1) | no penalty relief for pre-2015 years based on the more lenient 2015 calculation | 58 |
May 2016 Alberta CPA Roundtable, Q.17
CRA stated that in the context of a voluntary disclosure respecting failure to file T1135s, “the taxpayer would have to complete the T1135 for...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(4) - Paragraph 152(4)(a) - Subparagraph 152(4)(a)(i) | onus on CRA re assessing T1135 penalties outside normal statute-barring periods | 57 |
| Tax Topics - Income Tax Act - Section 162 - Subsection 162(7) | penalty not an absolute liability penalty | 87 |
May 2016 Alberta CPA Roundtable, Q.13
The Guindon decision noted (at para. 90) that the Minister’s factum suggested that the taxpayer relief provisions of s. 220(3.1) could be...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 163.2 - Subsection 163.2(4) | penalty relief standards for gross negligence also applicable to culpable conduct | 97 |
May 2016 Alberta CPA Roundtable, Q.11
CRA may accept a second disclosure under the Voluntary Disclosure Program where the taxpayer’s non-compliance was due to factors beyond its...
9 October 2015 APFF Financial Strategies and Instruments Roundtable Q. 4, 2015-0588971C6 F - T1135 and voluntary disclosure
Where there has been a voluntary disclosure for failure of the taxpayer to file T1135s for the past, say, 15 years, the current practice of CRA is...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 162 - Subsection 162(7) | CRA is studying whether the $2,500 penalty for late T1135 filings applies automatically | 71 |
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 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 152 - Subsection 152(4) - Paragraph 152(4)(b) - Subparagraph 152(4)(b)(iii) | Ho acknowledged | 98 |
16 June 2014 STEP Roundtable, 2014-0523021C6 - Multiple assessments - STEP Q19
CRA reassesses each transaction in a series of transactions independently of each other, resulting in larger total assessments than could be...
16 June 2014 STEP Roundtable, 2014-0530571C6 - Voluntary Disclosures - Q13
How is Bozzer v. The QueenI, 2011 FCA 186, affecting voluntary disclosures that exceed ten years? CRA stated:
Voluntary disclosures that cover...
18 September 2013 Internal T.I. 2013-0487871I7 - Filing Due Date for Elections
Regarding elections that are required to be filed with the taxpayer's return, CRA noted that Rezek established that "where an election is required...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 39 - Subsection 39(4) | 233 |
30 October 2012 Ontario CTF Roundtable, 2012-0462921C6 - Ontario CTF - 163(1) Penalty
The potential of s. 220(3.1) penalties to drastically and unfairly exceed s. 163 penalties (discussed in Knight, for example) has been brought to...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 163 - Subsection 163(1) | 100 |
5 October 2012 APFF Roundtable, 2012-0453211C6 F - Formulaire T1135
In the course of a general discussion of waiver of penalties and interest for failure to timely file T1135s, CRA stated:
The following four...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 162 - Subsection 162(7) | CRA is not bound by Douglas | 152 |
8 February 2012 Internal T.I. 2011-0431581I7 F - Sous-alinéa 6(1)a)(vi) proposé
Respecting the proposed adoption of s. 6(1)(a)(vi), CRA stated:
In the event that the government announces that it will not adopt a particular...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Effective Date | taxpayers can file based on proposed legislation and wait until announcement that it will not be implemented | 214 |
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) - Subparagraph 6(1)(a)(vi) | “studies” are at all levels and bursaries and tuition reimbursements potentially are included | 136 |
3 June 2011 STEP Roundtable Q. 14, 2011-0401921C6 - 2011 STEP Conference - Q14 - Voluntary Disclosure
The questioner pointed out under the 10-year limitations period for the Voluntary Disclosure Program, a participating individual with unreported...
IC00-1R3 "Voluntary Disclosures Program" March 21, 2013
Penalty Relief
11. If the CRA accepts a disclosure as having met the conditions set out in this policy, it will be considered a valid disclosure...
8 October 2010 Roundtable, 2010-0373721C6 F - Divulgation volontaire
For disclosure files opened after December 31, 2009, CRA terminated its administrative practice under the voluntary disclosure program to allow an...
10 November 1994 Internal T.I. 9421446 - REASSESSMENT TO REDUCE PENALTY UNDER FAIRNESS LEGISLAT
A taxpayer cannot file a notice of objection to a reassessment made pursuant to s. 220(3.1), even if such reassessment was made within the normal...
Halifax Round Table, February 1994, Q. 14
The fairness legislation regarding the waiver or cancellation of interest and penalties is independent of whether those amounts have as yet been...
IC 92-2 "Guidelines for the Cancellation and Waiver of Interest and Penalties"
Articles
Joint Committee, "Proposed Changes to the Voluntary Disclosure Program Announced June 9, 2017", 8 August 2017 Joint Committee Submission to Finance respecting the Voluntary Disclosure Program (“VDP”)
Fettering of Minister’s discretion (pp. 6-7)
In light of well-established administrative-law principles, a number of the proposed changes, such...
Brooke Sittler, "Review of Penalty and Interest Relief Requests Under the Income Tax Act", 2015 CTF Annual Conference paper
General reasonableness standard (p. 42:6-7)
In general, the standard of review that the reviewing court will apply to the minister's decision on...
Ryan Rabinovitch, Angelo Discepola, "Solving Sales Tax Non-compliance Through the Canadian Voluntary Disclosure Program"
Although CRA can go back more than four years where there has been a neglectful misrepresentation etc., “in practice, however, the CRA will (by...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 281.1 - Subsection 281.1(1) | 380 |
Michael H. Lubetsky, "Interest Relief under the Federal and Provincial Regimes", Tax Litigation (Federated Press), Vol. XX, No. 1, 2015, p. 1182
No federal interest relief where delayed loss carry-back (p. 1184)
. . . One particularly pernicious question relating to interest relief under...
Esmail Bharwani, "Voluntary Disclosures", CGA Magazine, March – April, 2014, p. 48.
Confidentiality
No solicitor-client privilege exists between a client and a non-lawyer professional, so a non-lawyer remains exposed to CRA's...
David H. Sohmer, "Taxpayers May Be Penalized for Failing to Obtain a Second Opinion (Seriously!)", The Canadian Taxpayer, Vol. xxxiii No. 24, December 2011, p. 185: critique of Stemijon case.
Arthur Drache, "Sherman Letter To Finance Banks Case For 10-Year Rule Change", The Canadian Taxpayer, 3 March, 2009, VOL. XXXI, No. 5, p. 33.
Barbara Dombek, Shashi Fernando-Eden, "The ABCs of the VDP", CA Magazine, April 2003, p. 32: discussion of federal and provincial administrative positions on voluntary disclosure.
Landay, "How Fair is the Fairness Package?", Tax Profile, November 1994, p. 169: Includes a description of 12 successful and unsuccessful submissions that have been made under the fairness package to Revenue Canada.
Skulski, "Tax Collection in Recessionary Times", 1992 Conference Report, c.8
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 224 - Subsection 224(1.2) | 16 | |
| Tax Topics - Income Tax Act - Section 227 - Subsection 227(5) | 16 |
Beith, "Fairness Package", 1992 Conference Report, c.7.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(4) | 0 |
Subsection 220(3.2) - Late, amended or revoked elections
Cases
Banff Caribou Properties Ltd. v. Canada (Attorney General), 2023 FC 312
The applicant (Banff Caribou) sought to file amended returns in order to attach letters electing to treat certain depreciable capital properties...
McNabb Family Trust v. R., 98 DTC 6001, [1998] 1 CTC 330 (FCA)
In reversing a refusal of the Motions Judge to extend the time for bringing an application to review a decision of the Minister not to extend the...
See Also
Toronto Dominion Bank v. B.C. (Commissioner of Income Tax), 2017 BCCA 159
The 2012 taxation year of the taxpayer (“TD”) ended on October 31, 2012. Under s. 24(1) of the International Business Activity Act (B.C.), it...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Statutory Interpretation - Interpretation Act - Section 27 - Subsection 27(4) | filing deadline period started being counted from the day following the year end | 271 |
| Tax Topics - Income Tax Act - Section 37 - Subsection 37(11) | May 1, 2014 was not within 18 months of year-end October 31, 2012 | 58 |
Administrative Policy
7 January 2004 Internal T.I. 2003-0046717 F - MODIFICATION DE PBR INSCRIT SUR T664
The taxpayer’s election pursuant to s. 110.6(19) understated the ACB of the subject shares. The Directorate indicated that the ACB on the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - 101-110 - Section 110.6 - Subsection 110.6(27) | correction of ACB shown on s. 110.6(19) election not an election amendment that must comply with s. 110.6(27) | 200 |
21 September 2021 Internal T.I. 2019-0807491I7 - Subsections 93.1(5) and (6)
Interest paid in 2011 and 2012 by a foreign affiliate (USOpco) of Canco to an LLC that was held by Canco through a subsidiary US partnership (USP)...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 93.1 - Subsection 93.1(5) | access to ss. 93.1(5) and (6) needed for a US partnership to be considered to have a qualifying interest in a sister Opco paying it interest | 279 |
| Tax Topics - Income Tax Act - Section 220 - Subsection 220(2.1) | waiver under s. 220(2.1) cannot have the effect of permitting the late filing of an election not listed in Reg. 600 | 353 |
IC07-1R1 Taxpayer Relief Provisions 18 August 2017
Guidelines for accepting late filing or amendment
Acceptance of a late, amended, or revoked election
56. Circumstances where a request may be...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 96 - Subsection 96(5.1) | 135 |
21 April 2015 Internal T.I. 2014-0560811I7 - FACL carryback Surplus & PAS election
A Reg. 5901(2)(b) election, to have a dividend treated as paid out of pre-acquisition surplus, must be made by the filing-due date for the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Regulation 5901 - Subsection 5901(2) - Paragraph 5901(2)(b) | no relief for late-filed Reg. 5901(2)(b) election | 172 |
| Tax Topics - Income Tax Regulations - Regulation 5903.1 - Subsection 5903.1(1) | FACL carryback from transitional year | 154 |
| Tax Topics - Income Tax Regulations - Regulation 5907 - Subsection 5907(1) - Net Earnings | surplus pools are not to be retroactively adjusted for a FACL carryback | 171 |
| Tax Topics - Income Tax Regulations - Regulation 600 | no relief for late-filed Reg. 5901(2)(b) election | 54 |
27 August 2014 External T.I. 2014-0529221E5 F - Changement de méthode pour déclarer un gain
A taxpayer proposed retroactively changing to using the cost-recovery method in accounting for a share sale on an earnout basis (apparently in a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(g) | no reassessment to retroactively adopt a different earn-out recognition | 140 |
22 August 2014 External T.I. 2014-0541171E5 - Late 45(2) Election filed by executer
Mr. A rented out his home during his final years in a nursing home. Would CRA accept from his executor a late-filed s. 45(2) election for the home...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 45 - Subsection 45(2) | late s. 45(2) election filed by executor | 94 |
21 April 2008 External T.I. 2007-0220471E5 F - Excessive Capital Dividend and 220(3.2)
After indicating that no s. 184(4) election was available where one of the shareholders had been dissolved subsequently to the excessive capital...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 184 - Subsection 184(4) | no s. 184(4) election available where one of the shareholders was dissolved | 146 |
18 February 1999 External T.I. 9825635 - VALIDITY OF 104(5.3) ELECTION
The comments in IT-378R, that the validity of an election may not be denied by a taxpayer once it is accepted by the Department, is applicable to...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Rectification & Rescission | 32 |
Subsection 220(3.21)
Paragraph 220(3.21)(a)
Administrative Policy
S1-F3-C2 - Principal Residence
CRA may accept late-filed principal residence designation
2.15.1 Under certain circumstances the Minister of National Revenue may accept a...
Paragraph 220(3.21)(b)
Administrative Policy
8 September 2003 External T.I. 2002-0163705 F - Choix Tardif
CCRA indicated that a late s. 132.11(6) designation can be requested pursuant to s. 220(3.2) given that s. 220(3.21)(b) deemed a s. 132.11(6)...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 132.11 - Subsection 132.11(6) | late designation can be requested pursuant to s. 220(3.2) in light of s. 220(3.21)(b) | 80 |
Subsection 220(3.5) - Penalty for late filed, amended or revoked elections
Administrative Policy
9 November 2012 CTF Atlantic Roundtable, 2012-0465981C6 - CTF Atlantic - Filing Electronically
When a tax return is filed electronically, how can the taxpayer satisfy a requirement to "elect in the return" (see s. 50(1)) or "by letter...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 50 - Subsection 50(1) | 166 | |
| Tax Topics - Income Tax Regulations - Regulation 1101 - Subsection 1101(5b.1) | 166 |
8 October 2010 Roundtable, 2010-0373261C6 F - Choix prévu au paragraphe 184(3)
After a corporation is assessed under s. 184(2) in respect of an excess dividend following an audit of the calculation of its capital dividend...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 184 - Subsection 184(3) | permission to late-file a s. 184(3) after an objection has failed might be granted | 217 |
Finance
6 October 2017 APFF Financial Strategies and Instruments Roundtable, Q.12
What are the policy considerations for s. 220(3.5) penalties arising on making late elections as permitted in the Minister’s discretion under...
Subsection 220(4.1)
Administrative Policy
28 February 2019 CBA Roundtable, Q.10
ETA s. 314(2) provides that “the Minister shall accept security, in an amount and a form satisfactory to the Minister … for payment of any...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Secton 314 - Subsection 314(2) | CRA will consider forms of security other than an LC for assessed taxes and interest | 227 |
Subsection 220(4.5) - Security for departure tax
Administrative Policy
Information Circular IC98-1R8 “Tax collections policies” 24 May 2022
Requirement and acceptance of security
We may accept security instead of payment, or security combined with a payment arrangement, under some...
15 June 2021 STEP Roundtable Q. 1, 2021-0892681C6 - Trust Residency and Departure Tax
A Canadian-resident inter vivos personal trust realized gain under s. 128.1(4) as a result of its central management and control moving to outside...
18 October 2016 External T.I. 2015-0608051E5 F - Emigration of a trust
May a trust that ceases to be resident in Canada make an election under s. 220(4.5) and, if so, can CRA extend the time for making such election...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 2 - Subsection 2(1) | Fundy Settlement test may differ from residence of trustees | 86 |
5 October 2012 APFF Roundtable, 2012-0454231C6 F - Garantie pour impôt de départ
In Scenario A the emigrating individual holds 100 Class A shares of a Canadian-controlled private corporation with a fair market value of $5M, for...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 220 - Subsection 220(4.53) | partial redemption may not result in demand for payment of departure tax | 172 |
4 May 2009 External T.I. 2008-0299841E5 F - Garantie pour l'impôt de départ
When an individual residing in Québec left Canada during 2002, the Part I tax payable for the year was $190,000, net of provincial abatement, but...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 164 - Subsection 164(7) | refund of instalments paid in excess of Part I tax for year ignoring s. 128.1(4) departure tax permitted where s. 220(4.5) security posted for such departure tax | 170 |
Paragraph 220(4.5)(a)
Subparagraph 220(4.5)(a)(i)
Administrative Policy
29 April 2008 External T.I. 2006-0215891E5 F - Partnership Interest & Departure Tax
On his emigration from Canada, Mr. A held an interest in a real estate partnership which was capital property, and realized a taxable capital gain...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 85 - Subsection 85(1.1) - Paragraph 85(1.1)(b) | partnership interest is eligible property | 112 |
Subsection 220(4.51)
Administrative Policy
5 June 2017 Internal T.I. 2014-0561391I7 F - Deemed security pursuant to 220(4.51)
For purposes of calculating the s. 220(4.5) security, does an individual qualify for an exemption from providing security on the first $100,000 of...
Articles
Jenny Yu, "Departure Tax for Small Trusts", Canadian Tax Focus, Vol. 7, No. 1, February 2017, p. 8
No relief from security requirement for small trusts/emigration under s. 94(5) (p. 8)
When an individual ceases to be a resident of Canada and has...
Subsection 220(4.53)
Administrative Policy
5 October 2012 APFF Roundtable, 2012-0454231C6 F - Garantie pour impôt de départ
Respecting the scenario where the exit tax generated on the shares of a Canadian-controlled private corporation is secured by hypothecating those...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 220 - Subsection 220(4.5) | CRA may accept shares of the CCPC shares generating departure tax and looks for a minimum 2:1 FMV/tax ratio | 187 |