Income Tax
Reassessment
Appeal from Tax Court of Canada decision allowing respondent’s appeal regarding 2002 taxation year, quashing reassessment dated February 24, 2006, on basis not issued within normal reassessment period as set out in Income Tax Act, R.S.C., 1985 (5th Supp.), c. 1, s. 152(3.1)—Respondent allegedly never received original 2002 assessment dated, mailed June 5, 2003—Second assessment, dated February 24, 2006, issued—“Normal reassessment period” defined in s. 152(3.1) as ending three years after day of mailing of notice of original assessment—Reassessment valid whether original assessment mailed or not—If original assessment mailed, February 26, 2006 reassessment not out of time since issued within three-year limitation period—If original assessment never mailed, three-year period not yet running when second assessment issued—Therefore, Tax Court’s decision second assessment out of time invalid—Appeal allowed.
Gray v. Canada (A-20-08, 2008 FCA 284, Noël J.A., judgment dated September 23, 2008, 5 pp.)