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GST — partnership assessment was out of time

My client was a lawyer who had been in a law firm partnership. Some time after the partnership dissolved, he and the other partners were assessed by the CRA for unremitted GST that the CRA claimed was owing on returns that had been filed late.

I filed a Notice of Objection, and prepared a detailed analysis for the Appeals Officer to show that most of the assessment was statute-barred. While an assessment of the partnership could still be issued when the assessment was issued, assessments of the partners could not, due to a four-year limitation period in the legislation that was not dependent on when the partnership return was filed.

I also showed that certain adjustments that reduced the partners' liability could be allowed, as the four-year period did not run during the time that my client's notice of objection was under consideration.

In the end, my client's liability was reduced from $100,000 to $1,700.

Problem solved!

(2004)