Corporate Tax Return Filed Late: Ability to Get a Tax Refund

Posted on December 10th, 2024 in Domestic Tax

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A July 22, 2024, Federal Court case found that CRA’s refusal to accept and provide tax refunds for corporate tax returns filed more than three years after the relevant year-end was reasonable. While a specific provision allows CRA to accept requests (at their discretion) for refunds after the three-year deadline for individuals, there is no parallel provision for corporations.

While no tax refund can be provided where corporate tax returns are not filed within three years of the fiscal year-end, CRA has discretion to re-appropriate the refund to another account of the taxpayer (e.g. the taxpayer’s GST/HST, payroll or income tax account). However, this re-appropriation is fully at CRA’s discretion, based on factors such as CRA error or delay, natural or man-made disasters, death, accident, serious illness, or emotional or mental distress.

Ensure that corporate tax returns are filed in a timely manner to avoid risking the loss of the tax refund.

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Article originally published in: Tax Tips & Traps 2024 Fourth Quarter – Issue 148.