CRA not providing relief where COVID-related delays create difficulties in meeting deadline for s. 164(6) loss carrybacks within estate’s first taxation year

In CRA Technical Interpretation 2020-0865071E5, the CRA was asked whether it would allow more time for the application of s. 164(6) of the Income Tax Act (Canada) where COVID has resulted in delays regarding the administration of an estate.  The CRA indicated it is “unable to extend the time limit for the dispositions in subsection 164(6) … beyond the first taxation year of the graduated rate estate.”

Prepared by: Leonard Gilbert , Morgan Watchorn

Leonard graduated from the University of Toronto, Faculty of Law (J.D. 2015) and is currently an associate practicing in the firm’s Toronto office. He previously performed extensively as a concert pianist and attended the Jacobs School of Music at Indiana… more »

Morgan Watchorn is an associate working out of the Vancouver office of Thorsteinssons LLP. During law school, Morgan worked as a teaching assistant in the Faculty of Law and served as a representative on the Faculty of Law Equity Committee.… more »