Back to Tax Dispute Inflection Points

The CRA's 10-year VDP & taxpayer relief limit is wrong

By Peter Aprile
The CRA's 10-year VDP & taxpayer relief limit is wrong
The CRA's 10-year VDP & taxpayer relief limit is wrong
1:02

In Bozzer v. Her Majesty the Queen (“Bozzer”), Federal Court of Appeal held that the taxpayer relief provisions contained in the Income Tax Act allow the Minister of National Revenue (“Minister”) and Canada Revenue Agency (“CRA”) to cancel interest accrued in any taxation year ending within ten years before the taxpayer’s application for relief, regardless of when the underlying tax debt arose.

The Minister and the CRA have, in some circumstances, attempted to disregard the common law. We have been waiting for the CRA to announce its response to the Bozzer decision.

Today, the CRA distributed a news release entitled Taxpayer relief deadline is December 31, 2011. This news release confirms that the CRA will follow the Federal Court of Appeal’s decision in Bozzer. In addition, the CRA announced that it will adopt this change for requests for taxpayer relief made under the Air Travellers Security Charge Act, Softwood Lumber Products Export Charge Act and the Excise Act.

Insights

Leveraged Growth and the CRA Reassessment Cycle

Leveraged growth leads to CRA reassessments and disputes. This insight explains how exposure modelling, objection strategy, and dispute readiness affect a company’s ability to reduce or overturn a reassessment.

Counter Sphere 1 Image, with “CRA Reassessments Behave Like Capital Events” title text, Counter Tax Litigators LLP: strategic leadership in complex CRA disputes.

CRA Reassessments Behave Like Capital Events

CRA’s audit architecture drives reassessments that behave like capital market shocks inside private companies. This article examines the structural forces at play and how executives maintain control once CRA formalizes its position.

Explore more insights >