Opco initially filed its return for its 2000 taxation year on the basis on deducting a non-capital loss (“NCL”) carried forward from its 1997 year so as to reduce its taxable income for 2000 to nil, and then received a written notice pursuant to s. 152(4) that no tax was payable for its 2000 taxation year. It now wishes to amend its T2 income tax return for its 2000 taxation year, so as to claim additional capital cost allowance and reverse the 1997 NCL carryforward to the year 2000, so that such NCL’s amount would be altered.
After repeating its position in IC 84-1, para. 10, the Directorate stated:
[I]t would therefore be possible for Opco to make the changes to its T2 income tax return for its 2000 taxation year more than 90 days after the date the CRA mailed the written notice that no tax was payable for its 2000 taxation year. However, the additional depreciation claimed for the 2000 year must not result in a change to tax payable for the 2001 and subsequent taxation years for which the time limit for filing a notice of objection has expired.
The new NCL for the 2000 taxation year cannot be applied to a subsequent taxation year for which there is tax payable and for which the time limit for filing a notice of objection has expired.