The CRA Can Reopen Tax Years You Thought Were Closed Forever

#Canada #CRA #TaxAudit DESCRIPTION: You filed your taxes, the refund came, the years rolled by — and that old tax year became a door you locked behind you and never thought about again. But the CRA kept a key. Most people assume there's a point where old tax years simply expire and the agency can never come back. There is such a point — usually. But specific situations make that expiry vanish entirely, and the CRA can reach into a year you'd completely forgotten. The unsettling part is that some of these triggers are honest mistakes, not fraud. I'm Nathan Maxwell, a tax specialist with more than 20 years dealing with the CRA. In this video I show you exactly how the reassessment window works, the situations that stretch it to six years or remove the limit entirely, why "my accountant handled it" won't save you, and the single habit that keeps the door shut for good. ⏱ TIMESTAMPS 0:00 — The Door You Thought Was Locked Forever 1:40 — What a Reassessment Actually Is 2:42 — The Relief: The Normal Three-Year Limit 3:58 — Why "Three Years" Is Not the Guarantee You Think 4:34 — Key #1: Neglect, Carelessness, Willful Default or Fraud 6:13 — Key #2: The Waiver You Might Sign Without Realizing 7:09 — Key #3: Foreign Property and the T1135 Trap 8:13 — What Actually Counts as Foreign Property 9:20 — Key #4: Dealings With Related Non-Residents 10:05 — Key #5: Loss Carrybacks and Foreign Tax Credits 10:48 — The Part That Hurts Honest People 12:14 — Why "My Accountant Handled It" Won't Save You 13:14 — Reassessment vs. the 10-Year Collection Clock 14:02 — All the Keys on One Ring 15:07 — The One Habit That Keeps the Door Shut 16:49 — Records, Waivers and the Voluntary Disclosures Program 📌 KEY TOPICS COVERED: ✅ What a reassessment is and how the CRA can reopen an old year for more tax, compounding interest and penalties ✅ The normal three-year reassessment window, when it starts (the date on your notice of assessment), and the four-year version for larger corporations and certain trusts ✅ What "statute barred" means and why time alone is not an automatic lock ✅ The unlimited reassessment trigger under subsection 152(4) — misrepresentation from neglect, carelessness, willful default or fraud — and why the first two catch honest people ✅ The waiver (Form T2029) that voluntarily extends the window, and how to rescind it with six months' notice ✅ The foreign property trap: how a missed, late or wrong T1135 turns a three-year window into six years ✅ Why U.S. shares held in a Canadian account still count, that the $100,000 threshold is based on cost (not income), and that it's triggered at any point in the year ✅ The six-year window for non-arm's-length dealings with non-residents, loss carrybacks and foreign tax credit changes ✅ Why "my accountant handled it" failed in a 2025 tax court decision — the obligation rests with the taxpayer ✅ The difference between the reassessment limit and the separate 10-year collection clock ✅ The one habit that defeats nearly every key: report accurately, file every required form, keep records six years, and use the Voluntary Disclosures Program if you find an old mistake first ⚠️ DISCLAIMER: This video is for educational purposes only and does not constitute legal or financial advice. Consult a qualified Canadian tax accountant, CPA or tax lawyer for your specific situation. 🔔 Subscribe for more Canadian tax and retirement strategies the government doesn't advertise. #CRA #TaxAudit #Reassessment #StatuteBarred #T1135 #CanadianTaxes #ForeignProperty #VoluntaryDisclosures #IncomeTaxAct #TaxCompliance #PersonalFinance #Canada #FinancialLiteracy #TaxTips #CrossBorderTax