Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
Principal Issues:
Whether subsection 152(8) permits the Minister to "voluntarily reassess" a taxpayer's return beyond the normal reassessment period.
Position TAKEN:
No.
Reasons FOR POSITION TAKEN:
Subsection 152(8) of the Act confirms for greater certainty that an assessment is valid and binding notwithstanding any error contained therein or any error in the proceedings under the Act relating to that assessment. It does not allow the Minister to assess or reassess a taxpayer with total disregard for the provisions of the Act (i.e., beyond statute barred years).
January 10, 2001
Ministerial Correspondence Division HEADQUARTERS 25 McArthur Ave., Twr. C, Rm C1-100 T. Young, CA Vanier, ON K1A 0L5 952-1506
Attention: Betty-Ann Ward 2001-006383
Application of Subsection 152(8) of the Income Tax Act (the "Act")
This is in reply to your memorandum dated January 3, 2001, wherein you requested an insert in order to enable you to complete your file 2000-009645. Specifically, you have asked us to discuss the application of subsection 152(8) of the Act with respect to reassessing a taxpayer's return for a year that is statute barred.
We would recommend the following insert:
"Subsection 152(8) of the Act confirms for greater certainty that, unless appealed or objected to by the taxpayer, an assessment is valid and binding notwithstanding any error contained therein or any error in the proceedings under the Act relating to that assessment. However, although an assessment or reassessment is valid even if it contains an error or if a procedural error was made in its issuance, subsection 152(8) does not allow the Minister to intentionally issue a reassessment beyond the normal reassessment period if there is no provision in the Act allowing the Minister to do so. Therefore, since there is no provision of the Act allowing the Minister to reassess the client's 1983 return, no reassessment may be made."
We trust that these comments will be of assistance.
J. Wilson, CGA
for Director
Business and Publications Division
Income Tax Rulings Directorate
Policy and Legislation Branch
??