The taxpayer sought cancellation pursuant to s. 207.06(1) of the taxes for which she had been assessed in respect of her excess contributions to her TFSA for her 2021 and 2022 taxation years. She maintained that she did not find out about the over-contributions until speaking with CRA in the spring of 2023.
The second review officer denied her request on the basis that she had received an assessment of her 2021 taxation year, showing the excess contribution, in July 2022, so that her repayment of the excess contributions, which did not occur until later in 2023, thus did not occur within a reasonable time frame.
In granting the taxpayer's application for judicial review, so that the matter was referred back to CRA for reconsideration, Southcott J noted that the second review decision was unreasonable because it did not address inconsistencies in the record as to whether a notice was sent to her in July 2022.