The latest date by which the Minister could make a determination at the level of a limited partnership (BCOM) for its 2001 fiscal year pursuant to s. 152(1.4) was February 28, 2005, whereas the normal reassessment period for its general partner (XCO) for its taxation year in which the BCOM's 2001 fiscal period ended (the "Particular Taxation Year"), would expire on April 25, 2005. Regarding whether the Minister could reassess XCO directly to change the partnership income allocated to it, the Directorate stated:
[T]he Minister could reassess pursuant to subsection 152(4) at the level of the XCO general partner, in respect of the tax that would be payable by XCO for the Particular Taxation Year, in order to, inter alia, modify the amount of its share of the income from BCOM that was included in the computation of its income … without a determination being made at the level of BCOM pursuant to subsection 152(1.4), and without assessments at the level of BCOM partners being made pursuant to paragraph 152(1.7)(b). The Minister could also reassess pursuant to subsection 152(4) at the XCO general partner level in the above circumstances even if the time limit for making a determination at the BCOM level pursuant to subsection 152(1.4) had expired.
Of course, a reassessment could not be made pursuant to subsection 152(4) in respect of XCO in the circumstances described above after the expiry of the normal reassessment period in the circumstances described in paragraphs 152(4)(a) (which includes the filing by the taxpayer of a waiver of the application of the normal reassessment period) and 152(4)(b).
In addition, a reassessment pursuant to subsection 152(4) in respect of XCO would apply only to that partner, and would not affect or bind any other partner of BCOM.