The mailing date of the notification from the CRA that no tax is payable.The mailing date of the original notice of assessment by the CRA or,.This “normal reassessment period” is defined under subsection 152(3.1) of the Income Tax Act, and begins counting from the earlier of: ![]() Subsection 152(3.1) of the Canadian Income Tax Act entitles the CRA to a “normal reassessment period” to reassess a taxpayer’s tax year at its discretion once an initial tax assessment has been issued. This power to reassess is not unlimited, however, and the Canadian Income Tax Act does aim to afford Canadian taxpayers with protection against unfettered and indefinite tax reassessments by the CRA. The CRA is also entitled to reassess a taxpayer’s taxes payable if it discovers any issues with a taxpayer’s return after it has issued an initial tax assessment. This rule exists to prevent taxpayers from abusing the tax system by misreporting income or refusing to file their tax returns, in order to avoid or escape their tax debts. It may do so in the case where a taxpayer reports taxable income incorrectly on a given return, or where a taxpayer fails to file a tax return. The CRA is not bound by a taxpayer’s return when assessing taxes payable and is entitled under subsection 152(7) of the Canadian Income Tax Act to assess a taxpayer in its discretion. Under subsection 152(1) of the Canadian Income Tax Act, the CRA is bound to examine a taxpayer’s filed tax returns “with all due dispatch” to assess that taxpayer for taxes owing or refund entitlements. The Canadian tax system is based on the principles of self-assessment, which requires that Canadian taxpayers perform their own due diligence and to report their taxable income to the Canada Revenue Agency (“CRA”) for tax assessment. Introduction – What are Statute-Barred Tax Years?
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