8 February 2012 Internal T.I. 2011-0431581I7 F - Sous-alinéa 6(1)a)(vi) proposé -- summary under Effective Date

Respecting the proposed adoption of s. 6(1)(a)(vi), CRA stated:

[W]e indicated in question 16 of the CRA Roundtable at the 2009 Annual Conference of the Canadian Tax Foundation, that according to its well-established practice, the CRA generally allows taxpayers to file their tax returns in accordance with proposed legislation. However, if a taxpayer files a tax return under existing legislation and later requests an adjustment to the tax return to reduce the tax payable based on proposed legislation to amend the Act, the CRA will not agree to issue a reassessment if the first assessment was legally correct. It is therefore recommended that taxpayers in that situation waive the normal reassessment period to protect their rights until the proposed legislation receives royal assent.

In the event that the government announces that it will not adopt a particular amendment, it is expected that a taxpayer who has filed an income tax return based on a proposed amendment will take immediate steps to adjust the taxpayer’s affairs and, if applicable, pay all taxes due. Where taxpayers have acted reasonably in the circumstances, have taken immediate action to settle their affairs and have paid the taxes due, the CRA will waive the penalties and/or interest, if applicable.

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