Extended period of reassessment

The normal reassessment period can be extended for an extra three years for any of the following reasons:

• you want to carry back a loss or credit from a later tax year;
• a non-arm's length transaction involving the corporation and a non-resident affects the corporation's tax;
• the corporation pays an amount or receives a refund of foreign income or profits tax;
• a reassessment of another taxpayer's tax for any of the above reasons affects the corporation's tax;
• a reassessment of another tax year for any of the above reasons affects the corporation's tax;
• the reassessment results from a non-resident corporation's allocation of revenue or expenses for the Canadian business, or from a notional transaction, such as branch advance, between the non-resident corporation and its Canadian business; or
• to give effect to the application of the non-resident trust rules in section 94 or to the application of the foreign investment rules under sections 94.1 and 94.2 for tax years that end after March 4, 2010, as proposed in the March 4, 2010 budget.

If the reassessment results from a provincial income reallocation, the normal reassessment period can be extended for one year from the later of:

• the day on which the CRA is advised of the provincial reassessment; and
• 90 days after the notice of the provincial reassessment was mailed.

Forms and publications

• Guide T4012, T2 Corporation Income Tax Guide