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Income Tax Act (R.S.C., 1985, c. 1 (5th Supp.))

Full Document:  

Act current to 2022-09-22 and last amended on 2022-09-01. Previous Versions

PART IIncome Tax (continued)

DIVISION IReturns, Assessments, Payment and Appeals (continued)

Refunds (continued)

 [Repealed, 1994, c. 7, Sch. VII, s. 19]

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • R.S., 1985, c. 1 (5th Supp.), s. 164.1
  • 1994, c. 7, Sch. II, s. 137, Sch. VII, s. 19

Objections to Assessments

Marginal note:Objections to assessment

  •  (1) A taxpayer who objects to an assessment under this Part may serve on the Minister a notice of objection, in writing, setting out the reasons for the objection and all relevant facts,

    • (a) if the assessment is in respect of the taxpayer for a taxation year and the taxpayer is an individual (other than a trust) or a graduated rate estate for the year, on or before the later of

      • (i) the day that is one year after the taxpayer’s filing-due date for the year, and

      • (ii) the day that is 90 days after the day of sending of the notice of assessment; and

    • (b) in any other case, on or before the day that is 90 days after the day of sending of the notice of assessment.

  • Marginal note:Limitation of right to object to assessments or determinations

    (1.1) Notwithstanding subsection 165(1), where at any time the Minister assesses tax, interest, penalties or other amounts payable under this Part by, or makes a determination in respect of, a taxpayer

    • (a) under subsection 67.5(2) or 152(1.8), subparagraph 152(4)(b)(i) or subsection 152(4.3) or (6), 161.1(7), 164(4.1), 220(3.4) or 245(8) or in accordance with an order of a court vacating, varying or restoring an assessment or referring the assessment back to the Minister for reconsideration and reassessment,

    • (b) under subsection 165(3) where the underlying objection relates to an assessment or a determination made under any of the provisions or circumstances referred to in paragraph 165(1.1)(a), or

    • (c) under a provision of an Act of Parliament requiring an assessment to be made that, but for that provision, would not be made because of subsections 152(4) to 152(5),

    the taxpayer may object to the assessment or determination within 90 days after the day of sending of the notice of assessment or determination, but only to the extent that the reasons for the objection can reasonably be regarded

    • (d) where the assessment or determination was made under subsection 152(1.8), as relating to any matter or conclusion specified in paragraph 152(1.8)(a), 152(1.8)(b) or 152(1.8)(c), and

    • (e) in any other case, as relating to any matter that gave rise to the assessment or determination

    and that was not conclusively determined by the court, and this subsection shall not be read or construed as limiting the right of the taxpayer to object to an assessment or a determination issued or made before that time.

  • Marginal note:Objections by large corporations

    (1.11) Where a corporation that was a large corporation in a taxation year (within the meaning assigned by subsection 225.1(8)) objects to an assessment under this Part for the year, the notice of objection shall

    • (a) reasonably describe each issue to be decided;

    • (b) specify in respect of each issue, the relief sought, expressed as the amount of a change in a balance (within the meaning assigned by subsection 152(4.4)) or a balance of undeducted outlays, expenses or other amounts of the corporation; and

    • (c) provide facts and reasons relied on by the corporation in respect of each issue.

  • Marginal note:Late compliance

    (1.12) Notwithstanding subsection 165(1.11), where a notice of objection served by a corporation to which that subsection applies does not include the information required by paragraph 165(1.11)(b) or 165(1.11)(c) in respect of an issue to be decided that is described in the notice, the Minister may in writing request the corporation to provide the information, and those paragraphs shall be deemed to be complied with in respect of the issue if, within 60 days after the request is made, the corporation submits the information in writing to a Chief of Appeals referred to in subsection 165(2).

  • Marginal note:Limitation on objections by large corporations

    (1.13) Notwithstanding subsections 165(1) and 165(1.1), where under subsection 165(3) a particular assessment was made for a taxation year pursuant to a notice of objection served by a corporation that was a large corporation in the year (within the meaning assigned by subsection 225.1(8)), except where the objection was made to an earlier assessment made under any of the provisions or circumstances referred to in paragraph 165(1.1)(a), the corporation may object to the particular assessment in respect of an issue

    • (a) only if the corporation complied with subsection 165(1.11) in the notice with respect to that issue; and

    • (b) only with respect to the relief sought in respect of that issue as specified by the corporation in the notice.

  • Marginal note:Application of subsection (1.13)

    (1.14) Where a particular assessment is made under subsection 165(3) pursuant to an objection made by a taxpayer to an earlier assessment, subsection 165(1.13) does not limit the right of the taxpayer to object to the particular assessment in respect of an issue that was part of the particular assessment and not part of the earlier assessment.

  • Marginal note:Partnership

    (1.15) Notwithstanding subsection 165(1), where the Minister makes a determination under subsection 152(1.4) in respect of a fiscal period of a partnership, an objection in respect of the determination may be made only by one member of the partnership, and that member must be either

    • (a) designated for that purpose in the information return made under section 229 of the Income Tax Regulations for the fiscal period; or

    • (b) otherwise expressly authorized by the partnership to so act.

  • Marginal note:Limitation on objections

    (1.2) Notwithstanding subsections (1) and (1.1), no objection may be made by a taxpayer to an assessment made under subsection 118.1(11), 152(4.2), 169(3) or 220(3.1) nor, for greater certainty, in respect of an issue for which the right of objection has been waived in writing by the taxpayer.

  • Marginal note:Service

    (2) A notice of objection under this section shall be served by being addressed to the Chief of Appeals in a District Office or a Taxation Centre of the Canada Revenue Agency and delivered or mailed to that Office or Centre.

  • Marginal note:Application

    (2.1) Notwithstanding any other provision of this Act, paragraph (1)(a) shall apply only in respect of assessments, determinations and redeterminations under this Part and Part I.2.

  • Marginal note:Duties of Minister

    (3) On receipt of a notice of objection under this section, the Minister shall, with all due dispatch, reconsider the assessment and vacate, confirm or vary the assessment or reassess, and shall thereupon notify the taxpayer in writing of the Minister’s action.

  • (3.1) and (3.2) [Repealed, 1998, c. 19, s. 192(4)]

  • (4) [Repealed, 1994, c. 7, Sch. VIII, s. 98(3)]

  • Marginal note:Validity of reassessment

    (5) The limitations imposed under subsections 152(4) and 152(4.01) do not apply to a reassessment made under subsection 165(3).

  • Marginal note:Validity of notice of objection

    (6) The Minister may accept a notice of objection served under this section that was not served in the manner required by subsection 165(2).

  • Marginal note:Notice of objection not required

    (7) Where a taxpayer has served in accordance with this section a notice of objection to an assessment and thereafter the Minister reassesses the tax, interest, penalties or other amount in respect of which the notice of objection was served or makes an additional assessment in respect thereof and sends to the taxpayer a notice of the reassessment or of the additional assessment, as the case may be, the taxpayer may, without serving a notice of objection to the reassessment or additional assessment,

    • (a) appeal therefrom to the Tax Court of Canada in accordance with section 169; or

    • (b) amend any appeal to the Tax Court of Canada that has been instituted with respect to the assessment by joining thereto an appeal in respect of the reassessment or the additional assessment in such manner and on such terms, if any, as the Tax Court of Canada directs.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • R.S., 1985, c. 1 (5th Supp.), s. 165
  • 1994, c. 7, Sch. II, s. 138, Sch. VII, s. 20, Sch. VIII, s. 98, c. 13, s. 8
  • 1995, c. 21, s. 70, c. 38, ss. 4, 9
  • 1996, c. 11, s. 95, c. 21, s. 45
  • 1998, c. 19, s. 192
  • 1999, c. 17, s. 168
  • 2000, c. 19, s. 51
  • 2001, c. 17, s. 157
  • 2005, c. 38, s. 138
  • 2010, c. 25, s. 43
  • 2014, c. 39, s. 61

General

Marginal note:Irregularities

 An assessment shall not be vacated or varied on appeal by reason only of any irregularity, informality, omission or error on the part of any person in the observation of any directory provision of this Act.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1970-71-72, c. 63, s. 1“166”

Marginal note:Extension of time by Minister

  •  (1) Where no notice of objection to an assessment has been served under section 165, nor any request under subsection 245(6) made, within the time limited by those provisions for doing so, the taxpayer may apply to the Minister to extend the time for serving the notice of objection or making the request.

  • Marginal note:Contents of application

    (2) An application made under subsection 166.1(1) shall set out the reasons why the notice of objection or the request was not served or made, as the case may be, within the time otherwise limited by this Act for doing so.

  • Marginal note:How application made

    (3) An application under subsection 166.1(1) shall be made by being addressed to the Chief of Appeals in a District Office or a Taxation Centre of the Canada Revenue Agency and delivered or mailed to that Office or Centre, accompanied by a copy of the notice of objection or a copy of the request, as the case may be.

  • Marginal note:Idem

    (4) The Minister may accept an application under this section that was not made in the manner required by subsection 166.1(3).

  • Marginal note:Duties of Minister

    (5) On receipt of an application made under subsection 166.1(1), the Minister shall, with all due dispatch, consider the application and grant or refuse it, and shall thereupon notify the taxpayer in writing of the Minister’s decision.

  • Marginal note:Date of objection or request if application granted

    (6) If an application made under subsection (1) is granted, the notice of objection or the request, as the case may be, is deemed to have been served or made on the day on which the decision of the Minister is sent to the taxpayer.

  • Marginal note:When order to be made

    (7) No application shall be granted under this section unless

    • (a) the application is made within one year after the expiration of the time otherwise limited by this Act for serving a notice of objection or making a request, as the case may be; and

    • (b) the taxpayer demonstrates that

      • (i) within the time otherwise limited by this Act for serving such a notice or making such a request, as the case may be, the taxpayer

        • (A) was unable to act or to instruct another to act in the taxpayer’s name, or

        • (B) had a bona fide intention to object to the assessment or make the request,

      • (ii) given the reasons set out in the application and the circumstances of the case, it would be just and equitable to grant the application, and

      • (iii) the application was made as soon as circumstances permitted.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1994, c. 7, Sch. II, s. 139, Sch. VIII, s. 99, c. 13, s. 8
  • 1999, c. 17, s. 168
  • 2005, c. 38, s. 138
  • 2010, c. 25, s. 44

Marginal note:Extension of time by Tax Court

  •  (1) A taxpayer who has made an application under subsection 166.1 may apply to the Tax Court of Canada to have the application granted after either

    • (a) the Minister has refused the application, or

    • (b) 90 days have elapsed after service of the application under subsection 166.1(1) and the Minister has not notified the taxpayer of the Minister’s decision,

    but no application under this section may be made after the expiration of 90 days after the day on which notification of the decision was mailed to the taxpayer.

  • Marginal note:How application made

    (2) An application under subsection (1) shall be made by filing in the Registry of the Tax Court of Canada, in accordance with the provisions of the Tax Court of Canada Act, three copies of the documents referred to in subsection 166.1(3) and three copies of the notification, if any, referred to in subsection 166.1(5).

  • Marginal note:Copy to Deputy Minister

    (3) The Tax Court of Canada shall send a copy of each application made under this section to the office of the Commissioner of Revenue.

  • Marginal note:Powers of Court

    (4) The Tax Court of Canada may grant or dismiss an application made under subsection 166.2(1) and, in granting an application, may impose such terms as it deems just or order that the notice of objection be deemed to have been served on the date of its order.

  • Marginal note:When application to be granted

    (5) No application shall be granted under this section unless

    • (a) the application was made under subsection 166.1(1) within one year after the expiration of the time otherwise limited by this Act for serving a notice of objection or making a request, as the case may be; and

    • (b) the taxpayer demonstrates that

      • (i) within the time otherwise limited by this Act for serving such a notice or making such a request, as the case may be, the taxpayer

        • (A) was unable to act or to instruct another to act in the taxpayer’s name, or

        • (B) had a bona fide intention to object to the assessment or make the request,

      • (ii) given the reasons set out in the application and the circumstances of the case, it would be just and equitable to grant the application, and

      • (iii) the application was made under subsection 166.1(1) as soon as circumstances permitted.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1994, c. 7, Sch. II, s. 139, c. 13, s. 7
  • 1999, c. 17, s. 167
  • 2000, c. 30, s. 171
  • 2001, c. 17, s. 264
  • 2005, c. 38, s. 140

Marginal note:Extension of time to appeal

  •  (1) Where an appeal to the Tax Court of Canada has not been instituted by a taxpayer under section 169 within the time limited by that section for doing so, the taxpayer may make an application to the Court for an order extending the time within which the appeal may be instituted and the Court may make an order extending the time for appealing and may impose such terms as it deems just.

  • Marginal note:Contents of application

    (2) An application made under subsection 167(1) shall set out the reasons why the appeal was not instituted within the time limited by section 169 for doing so.

  • Marginal note:How application made

    (3) An application made under subsection (1) shall be made by filing in the Registry of the Tax Court of Canada, in accordance with the provisions of the Tax Court of Canada Act, three copies of the application accompanied by three copies of the notice of appeal.

  • Marginal note:Copy to Deputy Attorney General

    (4) The Tax Court of Canada shall send a copy of each application made under this section to the office of the Deputy Attorney General of Canada.

  • Marginal note:When order to be made

    (5) No order shall be made under this section unless

    • (a) the application is made within one year after the expiration of the time limited by section 169 for appealing; and

    • (b) the taxpayer demonstrates that

      • (i) within the time otherwise limited by section 169 for appealing the taxpayer

        • (A) was unable to act or to instruct another to act in the taxpayer’s name, or

        • (B) had a bona fide intention to appeal,

      • (ii) given the reasons set out in the application and the circumstances of the case, it would be just and equitable to grant the application,

      • (iii) the application was made as soon as circumstances permitted, and

      • (iv) there are reasonable grounds for the appeal.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • R.S., 1985, c. 1 (5th Supp.), s. 167
  • 1994, c. 7, Sch. II, s. 139
  • 2000, c. 30, s. 172
 
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