29 September 2022 External T.I. 2022-0949081E5 - CMETC -Qualified Engineer or Geoscientist -- summary under Transitional Provisions and Policies

In the context of the draft legislation regarding the enhanced credit respecting flow-through critical mineral mining expenditures, CRA quoted previous statements that:

It is the CRA’s longstanding practice to ask taxpayers to file on the basis of proposed legislation. This practice eases both the compliance burden on taxpayers and the administrative burden on the CRA. However, where proposed legislation results in an increase in benefits (for example, Canada child tax benefit) to the taxpayer, or if a significant rebate or refund is at stake, the CRA’s past practice has generally been to wait until the measure has been enacted. …

Generally speaking, the CRA will not reassess if the initial assessment was correct in law. As a result, a taxpayer’s request to amend their tax records to reflect proposed legislation will be denied. It is recommended that taxpayers file a waiver in respect of the normal reassessment period to protect their interests.

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