Dec 31st CRA Deadline

by David E.
(Toronto, CANADA)

Re: 10 year rolling deadline of December 31st to make an amendment / filing a return with the CRA.

I recently filed my year 2000 return with the CRA on the evening of December 31st, 2010.

Today, in late June 2011, I was informed by the CRA that they are refusing to process it (and my $15K refund), as they received it on January 7th, 2011, even though it was submitted by me on December 31st, 2010, within their 10 year deadline.

CRA said I do not have a right to appeal their decision. This results in me being stuck with their arbitrary assessment, and owing $, rather than getting a refund.

I am unsure how to proceed, as this will affect the rest of my life as they add interest to an arbitrarily assessed amount that I do not actually owe, and apply any and all of my future refunds to this balance, meaning I don't ever get a refund again & owe them money forever. I did file within their deadline.

I am unsure what to do. Any helpful comments would be most appreciated.

Thanks -David

Hi David,

If it were me, I would ask to consult with a CA or tax lawyer about how best to proceed.

My article on Voluntary Tax Disclosure (see the tip box) explains why you may want to consult a tax lawyer versus an accountant.

I chat a bit about how CRA determines the receipt date, so it sounds to me like you missed their deadline. The key here is the post mark date ... not the date it was put in a mailbox. In hindsight, it probably would have been better to have walked it down to the CRA offices in Toronto earlier in the day. :0(

My suggestion is to get some professional advice so you know what your options are.

Before your appointment, you might want to read these two audit articles to help you formulate your questions for the accountant or lawyer:

What to do if You Receive a Tax Review Notice

Understanding Tax Audits in Canada

This article on Your Rights as a Canadian Taxpayer may also be useful.