[2013] 1 F.C.R. D-6
Income Tax
Income Calculation
Deductions
Judicial review of decision by respondent verbally refusing request to issue notices of determination of amount of applicant’s refundable investment tax credits (RITC)—Applicant also seeking order requiring respondent to issue notices of determination—Applicant initially filing tax returns for relevant taxation years, claiming deductions therein for scientific research, experimental development expenditures, investment tax credits—Amounts claimed leading to issuance of notices of assessment—Applicant later filing amended tax returns claiming RITCs—Requesting respondent, pursuant to Income Tax Act, R.S.C., 1985 (5th Supp.), c. 1, s. 152(1)(b), to determine amount of tax deemed to have been paid pursuant to Act, s. 127.1(1) on account of applicant’s payable taxes for relevant taxation year in order to enable respondent to refund any excess as authorized by Act, s. 164(1)(b)—Respondent refusing all RITC claims in letter, stating amended returns filed after statute-barred date applying for each year—Applicant later requesting Canada Revenue Agency (CRA) to either refund RITCs or issue notice of determination for each of relevant years—Respondent stating in telephone call to applicant that issuance of notices of determination statute barred—Applicant arguing, inter alia, that respondent never identified or told applicant that notice of determination included in notice of assessment; distinction between “assessment”, “determination”, “notice of assessment”, “notice of determination” recognized in Perfect Fry Company Ltd. v. The Queen, 2007 TCC 133—Whether notice of assessment or reassessment equivalent to notice of determination—Respondent not issuing requested notices of determination for RITC claims because of view that since applicant had received initial notices of assessment in respect of income tax returns for relevant taxation years, such notices equivalent of or deemed to be notices of determination notwithstanding fact that applicant never claiming nor calculating amount of tax as required by Act, s. 127.1(1)(c) nor filing prescribed information—View expressed by respondent contrary to statutory scheme premised on filing of prescribed information, calculation of RITCs—Erroneous view that initial notice of assessment equivalent to notice of determination leading to series of other faulty determinations—View also leading tax official to ignore teachings of Perfect Fry—Respondent’s decision quashed, matter remitted to respondent for issuance of requested notices of determination—Application allowed.
Signalgene R&D Inc. v. Canada (National Revenue) (T-1949-10, 2012 FC 1375, Lemieux J, judgment dated November 27, 2012, 47 pp.)