Tax Court of Canada Rules (Informal Procedure)

18 (1) A person who has made an application to the Minister to extend the time for the serving of a notice of objection or the making of a request in writing to the Minister for an assessment or determination in respect of an avoidance transaction may apply to the Court 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 and the Minister has not notified the person 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 Minister’s decision was mailed to the person.

(2) An application made under subsection (1) may be in the form set out in Schedule 18(1) — OBJECTION or 18(2) — REQUEST, as the case may be.

(3) An application under subsection (1) shall be made by filing with the Registry, in the manner provided in section 4.1, three copies of the application made to the Minister accompanied by three copies of the notice of objection or the request, as the case may be, and three copies of the Minister’s decision, if any.

(4) The Court may dispose of an application made under subsection (1) by

• (a) dismissing it, or

• (b) granting it,

and, in granting it, may impose such terms as it deems just or order that the notice of objection or the request be deemed to be a valid objection or request as of the date of the order.

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

• (a) the application was made within one year after

  • (i) the expiration of the time specified by the Income Tax Act for serving a notice of objection*, or

  • (ii) the lapse of 180 days after the day of mailing of a notice under subsection 245(6) of the Income Tax Act; and

• (b) the person demonstrates that

  • (i) within the applicable time specified in subparagraph (a)(i) or (ii), the person

    • (A) was unable to act or instruct another to act in the person’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 to extend time was made to the Minister as soon as circumstances permitted it to be made.

• * Subsection 165(1) of the Income Tax Act provides:

  • “165. (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) where the assessment is in respect of the taxpayer for a taxation year and the taxpayer is an individual (other than a trust) or a testamentary trust, 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 mailing of the notice of assessment; and

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

Subsection 248(1) provides:

“filing-due date for a taxation year of a taxpayer means the day on or before which the taxpayer’s return of income under Part I for the year is required to be filed or would be required to be filed if tax under that Part were payable by the taxpayer for the year;”

(6) The application pursuant to subsection (1) is deemed to have been filed on the date of its receipt by the Registry, even if the application is not accompanied by the documents listed in subsection (3), provided that those documents are filed within 30 days after that date or within any other reasonable time that the Court establishes.