The CRA denied the taxpayer's request for housing rebates for properties purchased in 2016 and 2017
The Federal Court of Appeal dismissed a taxpayer's appeal for an extension to file objections to the Canada Revenue Agency’s (CRA) reassessments.
The appellant, who was denied a housing rebate under the Excise Tax Act for properties purchased in 2016 and 2017, had failed to file the required notices of objection within the prescribed time limits.
In 2017 and 2018, the appellant received reassessments from the CRA, rejecting her claims for the new housing rebate. Under the Excise Tax Act, taxpayers have 90 days to file a notice of objection. If they miss this deadline, they can request an extension from the Minister of National Revenue, but this request must be made within one year of the objection deadline. The appellant did not meet these deadlines and applied to the Tax Court of Canada for extensions of time.
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The Tax Court rejected her request, ruling that the appellant had not filed the objections within the 90-day period or applied for an extension within the following one-year window. The appellant appealed this decision, arguing that her communications with the CRA, which involved submitting documents to support her housing rebate claims, should be considered a notice of objection.
However, the Federal Court of Appeal found no basis for overturning the Tax Court's decision. It noted that the appellant had failed to file a formal notice of objection or request an extension in time, as required by law. While the court expressed sympathy for the appellant, recognizing that many taxpayers mistakenly believe that informal communications with the CRA can replace a formal objection, it found no errors in the Tax Court’s decision.
The court also acknowledged that the CRA could have provided clearer information to the appellant about the importance of formally objecting to the reassessments within the deadlines. Despite these concerns, the court dismissed the appeal.
