If a taxpayer has applied to the Canada Revenue Agency for an extension of time to serve a notice of objection and the CRA refused the taxpayer’s application, the taxpayer can apply to the Tax Court of Canada to have the deadline extended.
When Can a Taxpayer Apply to the Tax Court of Canada?
A taxpayer can apply to the Tax Court of Canada under two circumstances:
- The CRA has refused the taxpayer’s request to have the deadline extended and the taxpayer has applied to the Tax Court of Canada within 90 days from the date appearing on the CRA’s letter informing him of such.
- Even if the CRA has yet to render its decision, if more than 90 days have elapsed, the taxpayer can take the matter directly to the Tax Court of Canada without waiting for the CRA’s decision. Even though this avenue is available to the taxpayer, it is generally not recommended, unless special circumstances. A taxpayer should generally not proceed to the Tax Court of Canada without having exhausted his recourse with the CRA.
How to Apply to the Tax Court of Canada for a Time Extension?
An application can be made to the Tax Court of Canada by filing with the registrar:
- 3 copies of the application served on the CRA (including 3 copies of the notice of objection); and
- if applicable, 3 copies of the letter received from the CRA notifying the taxpayer that his application has been refused.
What Factors Will the Tax Court of Canada Consider in Deciding Whether or Not to Grant the Application?
Generally, the Tax Court of Canada will look at the same factors that the CRA considered, namely, whether the application to the CRA for time extension was made within one year from the deadline to file the notice of objection.
If the application to the CRA was made within the one year limit:
- whether the taxpayer has demonstrated that within the time he had to file a notice of objection:
- he was not able to do so or to instruct someone else to do so on his behalf; or
- he had a bona fide intention to object to the reassessment;
- in light of the reasons stated by the taxpayer in his application and the circumstances of the case, it would be just and equitable to grant the application; and
- the application to the CRA for time extension was made as soon as circumstances permitted.
Last updated: November 3, 2016