Nick Pantaleo, Marisa Wyse, "Power to Lengthen Assessment Period", Canadian Tax Highlights, Vol. 26, No. 5, May 2018, p. 1
S. 231.8 to extend the reassessment period for the time during which an s. 231.2 requirement or an s. 231.7 compliance order is being contested (p. 1)
[T]he stop-the-clock period begins (1) in respect of a requirement, when the taxpayer applies for judicial review; and (2) in respect of a compliance order, when the taxpayer opposes the application. The period ends on the day the relevant application is “finally disposed of.”…
Chilling effect of s. 231.8
[T]he stop-the-clock suspension operates in respect of all audit issues, not just those to which the requirement or compliance application relates. In effect, proposed section 231.8 may deter taxpayers from challenging a requirement through the judicial review process because the challenge would result in extending the life of all issues to which the reassessment period relates.