Friday, November 25, 2022

MYTH OR FACT: The Canada Revenue Agency (CRA) may reassess the tax returns within 3 years from the sending of the notice of assessment.

FACT.

Furthermore, returns for which this 3 year period have expired are commonly referred to as being “statute-barred." However, the CRA may reassess a return beyond this period in certain cases, including where:
- a waiver of the normal time limits has been timely filed, or
- the taxpayer has made a misrepresentation attributable to neglect, carelessness, or willful default or has committed fraud in filing the return or in supplying any relevant information.

Although there are restrictions on when a (re)assessment can be made, these limits do not apply to the periods that the CRA may audit! In other words, while a taxpayer may believe that they cannot be assessed for periods beyond 3 years, the CRA still has the ability to analyze those prior years and ask for information.

To learn more, we invite you to contact us today.

(Cell) 780-212-0286
(Office) 780-459-8803
admin@StAlbertFinancialConsultants.ca

Posted at 10:42 AM