Précis: Subparagraph 152(4)(a)(ii) of the Income Tax Act (the “Act”) permits a taxpayer to waive the normal reassessment period. In this case Mr. Radelet attempted to set aside a waiver in a hearing that was bifurcated from the underlying tax issues which involved an alleged unreported capital gain and a disallowed business loss. He argued that the waiver should be set aside because it was obtained by coercion, that he lacked the mental capacity to execute such a waiver because of illness and, finally, that he did not understand the effect of the waiver. The Tax Court rejected all three grounds, holding the waiver was valid and ordered that Part II of the trial dealing with the substantive tax issues be set down for hearing. Costs were reserved until the conclusion of Part II.
Radelet v. R. – TCC: Waiver of limitation period was effectiveREAD MORE »