I-3 - Taxation Act

Section 1082.0.4 Disposition versions

2020-09-24

1082.0.4. The Minister may, despite the expiry of the time limit provided for in paragraph a or a.0.1 of subsection 2 of section 1010, in respect of a person described in the second paragraph, redetermine the tax, interest and penalties payable under this Act, and make a reassessment or an additional assessment, in respect of that person, for a taxation year for which tax consequences under this Act result from a sham transaction,

(a)  on or before the day that is six years after the day referred to, for the taxation year concerned, in paragraph a of subsection 2 of section 1010; or

(b)  on or before the day that is seven years after the day determined in subparagraph a if, at the end of the taxation year concerned, the person is a mutual fund trust or a corporation other than a Canadian-controlled private corporation.

The person to whom the first paragraph refers is

(a)  a person who is a party to the sham transaction;

(b)  a person who is a member of a partnership that is a party to the sham transaction, at the end of the partnership’s fiscal period that ends in the taxation year;

(c)  a corporation that is associated with the person described in subparagraph a or with the partnership described in subparagraph b, at the time the sham transaction is carried out;

(d)  a corporation that is associated with a person who is a member of a partnership that is a party to the sham transaction, at the time the transaction is carried out;

(e)  a person who is related to the person described in subparagraph a or to the partnership described in subparagraph b, at the time the sham transaction is carried out; or

(f)  a person who is related to a person who is a member of a partnership that is a party to the sham transaction, at the time the transaction is carried out.

However, the Minister may, in respect of a taxation year for which tax consequences under this Act result from a sham transaction, make a reassessment or an additional assessment, under the first paragraph, only to the extent that the reassessment or additional assessment may reasonably be considered to relate to the transaction.

2020, c. 16, s. 180.