How far back can the CRA reassess a taxpayer?

The CRA has wide-reaching powers when it comes to assessing, reassessing and collecting tax debt. The CRA is limited however as to how far back they can reassess. Get Farber Tax to assess your situation and help you avoid or dispute a potential CRA reassessment.

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How far back can the CRA reassess a taxpayer?

 

Under most circumstances, the CRA can only reassess a taxpayer going back three years. This is to ensure there is a certain level of certainty when you file taxes and to ensure that the CRA acts quickly if they detect an irregularity.

 

The three-year time limit begins the day the notice of assessment is issued to the taxpayer. After three years have passed from that date, the CRA can no longer reassess the taxpayer. However, if the CRA believes that the taxpayer has committed fraud, or misrepresented information on their tax return, the CRA can ignore the three-year limitation period.

 

In addition, if the taxpayer signs a waiver, this can allow the CRA to ignore the reassessment period.

 

If you are a business owner, be aware that some types of corporations have a longer, four year reassessment period.

Farber Tax Solutions can help you successfully deal with CRA problems. We utilize the experience of our tax experts to:

  • 1| Offer a comprehensive solution that is focused on achieving the most favourable possible outcome for your tax issue;
  • 2| Communicate with the CRA on your behalf and navigate the entire CRA dispute process; and
  • 3| Offer a complete solution to your tax problems, including ex-CRA professionals and tax lawyers from Farber Tax Law.