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 s. 152(4)(b.2) (three-year extension) and s. 152(4)(a)(i) exceptions, CRA indicated that in order to reassess beyond the normal reassessment period under s. 152(4)(a)(i):
Generally, the Minister would have to, at least, prove that the taxpayer or the person filing the return made an error in failing to file the Form T1135 and, although that error may have been made in good faith, it was an error that a prudent and conscientious person would not have made.