A Canadian-controlled private corporation was issued an original notice of assessment for a particular taxation year on December 31, 2013. Is the last day to issue a reassessment to the corporation under s. 152(4)(b) December 31, 2019? CRA responded:
The “normal reassessment period”…[ends] three years after the day of sending the notice of an original assessment or an original notification that no tax is payable by the taxpayer for the year. In this regard, subsection 27(3) of the Interpretation Act states that where a time is expressed to begin or end at, on or with a specified day, or to continue to or until a specified day, the time includes that day. Accordingly, under paragraph 152(3.1)(b)…where an original assessment is issued on December 31, 2013, the normal reassessment period ends on December 31, 2016 (i.e., 3 years after that date). The courts confirmed this in Brunette, [2001] 1 C.T.C. 2008 (TCC) [Docket: 98-2080-IT-I].
Paragraph 152(4)(b)…provides that a…reassessment… may be made after the taxpayer’s normal reassessment period…only if the…reassessment…is made before the day that is 3 years after the end of the normal reassessment period for the taxpayer in respect of the year… .