Quebec law could not be used to interpret federal law

Tax - Income Tax - Administration and Enforcement

Taxpayer failed to file tax returns for two years. Minister of National Revenue established “estimated” assessment pursuant to s. 152(7) of Income Tax Act. More than three years after assessments were made, taxpayer attempted to file tax returns for those years. Minister refused to process those statements on ground that reassessment could not take place after expiry of normal reassessment period of three years. Taxpayer brought application for judicial review. Application dismissed. Decision not to process taxpayer’s tax returns was not unreasonable. One purpose of s. 152 of Act was to regulate circumstances under which reassessment may be issued. Section 152(4) of Act applied to all contributions, whether or not they had been taxed. If Parliament had wanted different rule to apply, it could have said so explicitly. Normal reassessment period was not established exclusively for benefit of taxpayers. Based on English version of s. 152(4) of Act, phrase underlying taxpayer’s textual argument could not be applied so as to preclude normal reassessment period in cases of “estimated assessment” made without filing tax return. Federal law and Quebec law provided for different rules and Quebec law could not be used to interpret federal law.

6075240 Canada Inc. c. Canada (Revenu national) (2019), 2019 CarswellNat 1684, 2019 CarswellNat 1994, 2019 FC 642, 2019 CF 642, Sébastien Grammond J. (F.C.).

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