Principal Issues: Deadlines in the Act that flow from the CRA making an assessment or determination.
Position: It is necessary that the CRA mail the notice of assessment or determination on the date printed on the notice or determination.
Reasons: Delays in mailing can prejudice taxpayer objection and appeal rights, and CRA reassessment and collection remedies.
March 4, 2010
Assessment and Benefit Services Branch Headquarters Business Returns Directorate Income Tax Rulings Directorate Business and Partnerships Division
Attention : Sharon Cavanagh, Manager T2 Development Section 2009-033164 Richard Aronoff 613-941-7239 Re: Date of Mailing - Notices of Assessment
This is in response to the request in emails from Isabelle MacKay on July 9, 2009 and Elizabeth Wright on January 19, 2010 for confirmation of the necessity of mailing the notice of assessment on the date printed on the notice.
The Income Tax Act (the "Act") provides in subsection 244(14) that where any notice of assessment or determination is mailed, it shall be presumed to be mailed on the date of that notice or notification. Further, the assessment or determination is deemed to have been made on the day of its mailing, pursuant to subsection 244(15). Consequently, following these two provisions, the assessment or determination, once mailed, is considered made on the date of that notice or notification.
As to when the person is considered to have received the assessment or determination, paragraph 248(7)(a) of the Act provides that it is deemed to have been received on the day it was mailed. Following subsection 244(14), this is the date of that notice or notification.
The Act contains deadlines such as the time within which to: object to an assessment in subsection 165(1), apply for an extension of the time to object in subsection 166.1(7), and appeal from an assessment to the Tax Court in subsection 169(1). A taxpayer will be prejudiced in his or her ability to object to or appeal an assessment each day that the notice of assessment or determination is mailed after the printed date as he or she will have that many fewer days to object or appeal.
Similarly, the Act contains deadlines that the Canada Revenue Agency must comply with such as timeframes within which to reassess persons in subsection 152(3.1) and 152(4) and to institute the collection actions provided for in subsections 225.1(1) and (7).
We, therefore, confirm your interpretation that it is necessary that the notice of assessment or determination be mailed on the date printed on the notice or determination.
Hopefully, these comments have provided the clarification that you were seeking. Should you have any questions or require additional information, please do not hesitate to telephone Richard Aronoff at the number provided above.
B.J. Skulski
Manager
Insolvency and Administrative Law Section
Ontario Corporate Tax Division
Income Tax Rulings Directorate