April 15th, 2025
Short-term Rentals & GST/HST: The Hidden Tax Trap on Condo Sales
Switching to and from Airbnb or another form of short-term rentals can result in a GST/HST bill when a condo is sold or there is a change in use.
Electronic Correspondence with CRA: Caution!
Posted on October 23rd, 2025 in Domestic Tax
An April 29, 2025, French Federal Court case reviewed the taxpayer’s application for judicial review of CRA’s denial of a waiver of interest and penalty taxes on her excess TFSA contributions for the 2021 and 2022 taxation years (1%/month during which the excess contributions remained in the TFSA).
On July 26, 2022, CRA issued a notice of assessment outlining the excess contributions, which was delivered to the taxpayer’s online CRA account. The taxpayer, unaware of this communication, discovered the excess contribution in February 2023, when she logged in to her online CRA My Account to apply for employment insurance sickness benefits. She withdrew the excess within days.
The taxpayer argued that she had forgotten that she had changed her communication preferences from paper to electronic and, given her lack of technological expertise, she had not linked her email address with her online CRA account to receive the notifications.
CRA denied the relief, asserting that the excess must be withdrawn “without delay” for discretionary relief to be considered. Without delay has been defined administratively by CRA as a period of 30 days following the time that the individual is informed of the excess contribution. CRA asserted that this was the date that the assessment was posted electronically (July 26, 2022). As the amount was withdrawn more than 6 months after this time (February 2023), CRA’s position was that the amount was not withdrawn without delay.
Taxpayer loses
The Court found CRA’s denial reasonable, emphasizing that taxpayers who opt for electronic communication and neglect to check their account regularly cannot complain that they are unaware of CRA communications. In addition, CRA is not required to demonstrate that a taxpayer received mail; CRA must only demonstrate that the mail was posted.
If receiving electronic-only CRA communications, ensure to provide CRA your email address to get notifications and check the portal regularly.
Have any questions?
Drop us a line, we look forward to hearing from you.