Under proposed changes to CRA’s procedures, any taxpayer who, having failed to remove the excess amount from his or her TFSA following a warning letter, will be subject to an automatic assessment of tax on the excess contributions. In finding that such assessments would be authorized, CRA stated:
Under subsection 207.07(1), this individual is also required to file with the Minister a return for the year… . By virtue of subsection 207.07(3)… section 152…appl[ies]… .
Subsection 152(7) clearly provides that the Minister… in making an assessment may… if no return has been filed, assess the tax payable. Therefore, notwithstanding that the taxpayer is required to file a return, we agree with your view that subsection 152(7) permits the Minister to make an assessment of tax under Part XI.01 without first contacting the taxpayer.