Rosenberg v. Canada, 2015 FC 549

The taxpayer in the above noted case entered into an agreement with the CRA’s auditor. The CRA agreed not to reassess the 2006 and 2007 taxation year, except to make one specific adjustment.

Three years later, the CRA commenced a second audit for the same taxation years. The taxpayer was served with a request for information, which pertained to the same transactions that were the subject of the first audit.

Eventually, this matter was brought before the Federal Court with respect to the Minister’s exercise of her audit powers. 

The CRA denied having entered into an agreement with the taxpayer. Even if it had entered into said agreement, it would not operate to waive the CRA’s audit powers.

The matter is still being adjudicated in the Federal Court.

It should be noted that an agreement with the CRA may not be binding. Typically, the CRA will ask a taxpayer to sign a waiver of his or her right to appeal in respect of a reassessment. Doing so does not necessarily conclude the matter. The CRA can come back to reassess that taxation year, you just do not have the right to appeal the initial outcome.