Alternative Arguments In Support Of Tax Assessments

This is article is part of a series dealing with draft legislation released for comment by the Department of Finance on July 29th. Read the complete series:

• The evolving taxation of derivatives
• Sales of linked notes
• Taxation of switch fund shares
• Changes coming to country-by-country transfer pricing documentation requirements
• Proposed replacement of eligible capital property rules by new depreciable property class

The Minister may not reassess after the normal reassessment period unless the taxpayer has filed a waiver, or the taxpayer's return included a misrepresentation attributable to carelessness, negligence or wilful default, or fraud was committed in filing the return. A number of provisions in the ITA reinforce the exceptional nature of an assessment beyond the normal reassessment period. For example, where a reassessment made after the normal reassessment period is based on misrepresentation or fraud, ss. 152(4.01) generally requires that