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ARTICLE · 19 SEPTEMBER 2023

CRA Audit Requirements: Can A Taxpayer Contest Unreasonable Deadlines?

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The Income Tax Act (Canada) ("Tax Act") empowers the Minister of National Revenue (the "Minister"), for the purpose of administering or enforcing the Tax Act, to send a notice to a person...

CanadaTax
Michael H. Lubetsky
Michael H. Lubetsky
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The Income Tax Act (Canada) ("Tax Act") empowers the Minister of National Revenue (the "Minister"), for the purpose of administering or enforcing the Tax Act, to send a notice to a person requiring them to provide information or documents "within such reasonable time as is stipulated in the notice".1 Such a notice is commonly known as a "requirement". Because the time period for compliance with a requirement must be stipulated in the notice, "[e]xtensions of time in a requirement are not permitted, as that would invalidate the requirement."2 Failure to comply with a valid requirement can lead to compliance proceedings3 and/or criminal prosecution.4

But what if the Minister issues a requirement that stipulates an unreasonable time for compliance? Is such a requirement still valid? Does the recipient still have to comply and, if so, within what time frame?

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The foregoing provides only an overview and does not constitute legal advice. Readers are cautioned against making any decisions based on this material alone. Rather, specific legal advice should be obtained.

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