ACo’s 2011 to 2013 taxation years were arbitrarily assessed under s. 152(7). Eventually, it filed tax returns for those taxation years after the normal reassessment periods for those years, claiming additional deductions.
The Directorate indicated that ACo could not effectively extend the normal reassessment period pursuant to a request by it to extend the s. 150(1) filing deadline for its 2011 to 2013 returns under s. 220(3). After then turning to s. 152(6) and noting that the extension under s. 220(3) might extend the time for making an assessment under s. 152960, the Directorate stated:
However, paragraph 152(4)(b) states that a reassessment “required under subsection (6)” or “made as a consequence of the assessment or reassessment pursuant to this paragraph or subsection (6) of tax payable by another taxpayer” can only be made before the day that is three years after the end of the normal reassessment period for the particular taxation year. Applying the “implied exception rule” to these two provisions results in paragraph 152(4)(b) (a discretionary provision) overruling subsection 152(6). Therefore, even if a taxpayer receives an extension of the deadline to file the return of income or prescribed form needed to recognize a deduction listed in subsection 152(6) in a particular taxation year, such a reassessment can only be made within three years of the end of that year’s normal reassessment period.