Explanatory Note: Time Limits and Other Periods Act – Income Tax provisions

Background

As per subsections 7(1) and 7(5) of the Time Limits and Other Periods Act (COVID-19), the Minister of National Revenue may make a Ministerial Order for the purpose of mitigating unintended consequences brought on as a result of the coronavirus disease 2019 (COVID-19).

Due to the COVID-19 pandemic, many Canadians, businesses and other organizations, including the Canada Revenue Agency, may be unable to meet time limits set out in federal legislation. The Time Limits and Other Periods Act (COVID-19), enacted through Bill C-20, allows federal ministers to make temporary orders to extend or suspend time limits in specific federal legislation for which they are responsible.

Implications

This Ministerial Order, in respect of the Income Tax Act, temporarily extends:

1. The time limit for the filing of certain prescribed forms for the purposes of the Scientific Research and Experimental Development Tax Incentive Program (expenditures and investment tax credit) for a maximum of six months beginning on or after March 13, 2020 and not beyond December 31, 2020.
2. The time limits on the Minister's ability to make an assessment, reassessment or additional assessment, which would otherwise have expired on or after May 20, 2020, for a maximum of six months and not beyond December 31, 2020.
3. The time limit by which the Minister may grant an extension of time to a taxpayer to file a Notice of Objection to an assessment, which would otherwise have expired on or after March 13, 2020, for a maximum of six months and not beyond December 31, 2020.
4. The time limit by which a taxpayer or registrant may apply to the Tax Court of Canada for an extension of time to object to an assessment, which would otherwise have expired on or after March 13, 2020, for a maximum of six months and not beyond December 31, 2020.

All provisions made under this Ministerial Order will cease to apply on the earlier of December 31, 2020, or the day on which the order that enacted the provision is repealed.