An individual realized a business loss in his 2019 taxation year, which he carried back to his 2016 taxation year. Both years are statute-barred. His 2019 taxation year will be reassessed under s. 143.2 to deny the loss on the basis that it resulted from abusive tax planning representing a tax shelter investment.
In finding that, by virtue of s. 143.2(15), the individual’s 2016 taxation year could be reassessed beyond the normal reassessment period to deny the carried-back loss, the Directorate stated that “such carryback is closely linked to an adjustment in connection with a tax shelter investment and is necessary and required for the purposes of section 143.2.”