Tax - Goods and Services Tax - Administration and Enforcement
Taxpayer was sole proprietor of restaurant business before 2010 and after restaurant closed, taxpayer decided not to close HST account. Canada Revenue Agency (CRA) representative advised her that, provided she continued to file nil HST returns, she could keep HST account open and taxpayer filed nil HST returns for 2010 to 2014 taxation years. In early 2015, taxpayer moved to new address and advised CRA of it by filing 2014 income tax using new address, but she did not separately inform CRA, and taxpayer did not file HST return after that last filing. CRA sent 2016 letter addressed to old address, which asked taxpayer to provide information relating to her business/professional income for relevant periods within 30 days, failing that, CRA would reassess her returns. Taxpayer never received letter and CRA proceeded with reassessments and taxpayer only found out about reassessments in 2018, when she received collection letter from CRA that was sent to her correct address. Taxpayer brought application for extension of time to file notice of objection. Application dismissed. Taxpayer’s application was dismissed, because it was concluded that no extension was necessary as notice of objection was filed in timely manner. Minister led no evidence regarding means by which single taxpayer’s tax accounts were linked or how address updates were or should be reflected in CRA electronic database, and there was no evidence regarding CRA practice for updating addresses in electronic database. As result, it was found that reassessments mailed to taxpayer in 2016 were not mailed to correct mailing address. Evidence suggested that taxpayer learned of reassessments in 2018, through collection letter she received to correct address, and subsequent telephone call she had with CRA representative in March 2018, and she filed notice of objection to those reassessments within 90 days of reassessment being validly communicated to her. Accordingly, it was found that taxpayer filed objection to reassessments on time.
Kirschke v. The Queen (2019), 2019 CarswellNat 1203, 2019 CarswellNat 951, 2019 TCC 68, 2019 CCI 68, K.A. Siobhan Monaghan J. (T.C.C.).
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