May 28, 2012
Important Message – Timeline for filing a Notice of Objection
As you may be aware, on July 19, 2011 the Canada Revenue Agency (“CRA”) issued adverse tax rulings which provided that lump sum payments made in connection with the termination of group term life insurance, survivor income benefits and survivor transition benefits are to be included in income and subject to tax.
Discussions are ongoing between Koskie Minsky LLP, your Representative Counsel and Department of Justice lawyers regarding the process by which the correctness of the adverse tax rulings issued will be tested in the Tax Court of Canada.
We have received questions about the deadline for filing a notice of objection to your assessment for the 2011 taxation year. Given the time that may have already elapsed since the date that appears on your notice of assessment in respect of the 2011 taxation year, you should be aware that an individual must object by the later of: i) 90 days after the date of sending of the notice of assessment; and ii) one year after your filing due date for the year.
The later of the two relevant deadlines by which you must file a notice of objection to your assessment in respect of the 2011 taxation year is the date that is one year after your filing due date for the 2011 taxation year. Generally, the filing due date for your 2011 year is April 30, 2012. For those who carried on a business in 2011, the filing due date is June 15, 2012. Therefore you have at least until April 30, 2013 to file an objection.
After the details concerning the process by which the adverse tax rulings issues will be tested have been finalized, an information package will be mailed to affected pensioners and LTD life beneficiaries. The information package will set out specific instructions for filing a notice of objection. Please be patient until you receive this information package, as we have plenty of time left to file.