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Fairness Rules - December 2004 Deadline

Subject: Fairness Rules Number: 04-28 Date: 11/5/2004

All files should be checked.

Generally speaking, the Fairness Rules allow the Canada Revenue Agency discretion to

cancel or waive penalties and interest;

accept late filed, amended or revoked income tax elections; and

for individuals and testamentary trusts, issue income tax refunds and reduce amounts payable beyond the normal 3-year period.

Because of the changes in the Budget, any relief for taxation years between 1985 and 1994 must be submitted before January 1,2005.

Therefore, all tax advisors should review those situations where there may be the possibility that there will be a fairness request, and the request should be made by December 31, 2004. Once this deadline has passed, it will be impossible to request relief for the years 1985 to 1994.

On a go-forward basis, the Fairness Rules will only apply for the previous ten years. For example, in the year 2008, the fairness request can only go back to 1998.

A careful review of all files should be done.

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