2%20Procedures%20and%20Administration

However if there are other tax liabilities

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However, if there are other tax liabilities outstanding, such as amounts from previous years, CRA may apply a refund against these amounts. A refund will not generally be paid if the return is filed more than 3 years after the end of the relevant year. Interest is payable on refunds. This is considered taxable income.
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Books and Records Taxpayers must keep adequate books and records if they are carrying on a business or are required to pay or collect taxes must be sufficient to support a determination of income subject to tax or of amounts to be remitted. Depending on type of material, retention periods vary from 2-6 years, which can be extended by CRA in certain situations. Written permission can be obtained for earlier destruction. Failure to maintain books and records is a punishable criminal offence
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Assessments Once a return is filed, it is assessed by CRA, and a notice will be sent to the taxpayer indicating CRA accepts the information, and any penalties and interest payable. Returns may still be subject to further scrutiny Any change to CRA’s original assessment, called a reassessment, must occur within 3 years of the mailing of the original Notice of Assessment. (4 years for large corporations)
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Assessments Minister can reassess a return at any time if: Taxpayer or advisor has made any misrepresentation or committed fraud; Taxpayer has filed a waiver of the normal time limit (waiver can be revoked upon 6 months notice) Or, may reassess, Within 3 years of the expiration of the normal reassessment period (for loss carry backs)
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Assessments and Reassessments Minister has the discretion to allow reassessments outside this period at the request of an individual or a testamentary trust for reduction of taxes, interest or penalties Minister has discretion to waive interest and penalties Minister has discretion to reassess outside the normal time limits if a reassessment within the normal time limits affects a balance in another year (but restricted to this item only)
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Assessments and Reassessments If Minister alleges fraud or misrepresentation, it is up to the CRA to prove their allegations, should the taxpayer appeal the assessment However, once fraud is proven, the taxpayer is responsible to show that the assessment is incorrect. Our system is a self-assessment system it is assumed taxpayers have all the necessary information to file a proper return and will do so completely and honestly.
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Amended Tax Returns There is no defined procedure for filing an amended return. Administrative policy is that you have 3 years within the year in question to make a written request for a refund, and return will be amended if: CRA is satisfied previous assessment was wrong.
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