Delmer E Taylor:—This is the decision on a hearing at which Lloyd Tazzman made application to the Tax Review Board under subsection 167(1) of the Income Tax Act, SC 1970-71-72, c 63, as amended, for an order extending the time within which notices of objection to income tax assessments for the years 1974 and 1975 could be served on the Minister of National Revenue. Section 165 of the Act provides a taxpayer with a period of 90 days from the date of mailing of the notice of assessment in which to serve on the Minister a notice of objection in the prescribed form.
The taxpayer was represented by Mr Carl F Nelles, chartered accountant. Mr Nelles had been the accountant for Mr Tazzman for the relevant years and for some time before that. The notice of objection which the Minister was not prepared to accept without an order from the Board was dated March 17, 1978, and related to an assessment dated December 13, 1977. Mr Nelles’ Knowledge of the issue proved to be limited and he was unable to provide the Board with any details regarding the portions of the assessments to which objection was being taken. The following letter was filed in support of the application:
March 20, 1978
Tax Review Board,
Kent Professional Building,
381 Kent Street,
Ottawa, Ontario
Dear Sirs:
Re: Account # TAZZM 010-001-3
Lloyd Tazzman 1974 and 1975 years
Attached please find notices of objection for the above for 1974 and 1975.
These are late and therefore outlawed. The delay was caused by the bookkeeper for Mr Tazzman’s business being ill and the actual reassessments did not come forward for our attention until it was too late. As his business is currently being audited for 1973 and 1976, the year before and the year after these reassessments, we would ask for your favourable review and attention to waiving the late factor. Please advise at your earliest convenience.
Yours very truly,
(Sgd) Carl Nelles
Carl F Nelles
Encl. Chartered Accountant
Mr Nelles agreed that it was most unusual for an accountant to place responsibility on an office bookkeeper for matters having to do with the filing of income tax returns and resulting assessment notices.
A copy of the recent decision of this Board regarding the application of James l/IZ Elliott (below) is relevant. The comments therein apply in substantial measure to the present case as far as they deal with the relative responsibilities of both the taxpayer and the accountant. In addition, it is uncertain, on the evidence presented, that there is any ground for appeal in this matter and it is evident that should the current income tax audit now being conducted (according to Mr Nelles’ letter) result in changes affecting the years 1974 and 1975, reassessment notices would be issued for those years, at which time the opportunity for objection would be renewed.
The application is dismissed.
Application dismissed.