Reassessment vs Additional Assessment – Large Corporations

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Reassessment vs Additional Assessment – Large Corporations

Rio Tinto Alcan Inc v The Queen, 2014 TCC 288

At issue was whether the actions of the Minister were a “Reassessment” or an “Additional Assessment”, and the effect of each for a large corporation’s appeal/objection to the Minister’s view as to its tax liability.

The Crown argued that the actions it had taken were a reassessment and not an additional assessment.

The Court reviewed the decisions in Parent v Canada, [2003] TCJ No 445 (TCC), Walkem v MNR, 71 DTC 5288 (FC), and Mucien Remillard v The Queen, 2011 TCC 327.  The court also referred to two articles (C. Campbell, Administration of Income Tax 2013, cited by the Supreme Court of Canada in Revenue Agency v Environmental Services AES , [2013] 3 SCR 859 (2013) page 398; B. Russell, ” Assessments, Reassessments and Waivers, 2012 Tax Dispute Resolution Compliance and Administration “, Conference Report (Toronto: Canadian Tax Foundation, 2013) 26: 1-15; and D. Smith “Reassessments, Waivers, Amended Returns and Refunds” Corporate Management Tax Conference 1988, on page 8: 8).

The court held that the distinction between a reassessment and an additional assessment looks at whether there was an increase in the total taxable income of an assessment (indicating a reassessment) or not (an additional assessment).

Sas Ansari, BSc BEd PC JD LLM PhD (exp) CPA In-Depth Tax 1, 2 &3

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