Under normal circumstances the CRA has only three years from the date of an assessment or reassessment to further question your tax return. With GST and HST filings it is four years from the date of filing. When that date passes normally further review of the tax return is statute barred.
However the CRA can open a statute barred tax return under two circumstances
- If you sign a waiver allowing them to do so
- If the taxpayer has provided wrong or misleading information through intent or carelessness.
if you sign a waiver leading to a statute barred period extension, that waiver has effect until you repeal it in writing. It is important to know that the CRA will not consider a waiver if you try to write in a time limit. If you have already signed a waiver then a Revocation of a Waiver should be considered in order to reestablish the statute barred years.
The CRA may threaten to reassess a statute barred year unless you sign a waiver. But after receiving the waiver not only do they go ahead and reassess you but now they can also investigate previously statute barred years. Never make an uninformed decision when it comes to signing a waiver. Seek pofessional advice first!
Let National Tax Service assist you when making these serious decisions.