Can CRA Audit Me Again for a Year It Already Reassessed in Canada?

This answer covers Canadian federal tax law, which applies in every province.

Yes, the CRA can reassess a year, but only within time limits. For individuals, the normal reassessment period ends three years after the earlier of the date of the original notice of assessment and the date of the original notification that no tax is payable. After that, tax, interest or penalties cannot be assessed unless a listed exception applies.

The exceptions include a misrepresentation attributable to neglect, carelessness or wilful default, or fraud, in which case there is no fixed time limit. Other exceptions are a valid waiver on Form T2029 filed within the normal period, a three-year extension for certain items such as some loss carrybacks, and a taxpayer relief request. A reassessment under the misrepresentation, fraud or waiver exceptions is allowed only to the extent it relates to the matter that triggered the exception.

In an appeal of an assessment made after the normal period, the CRA must establish the misrepresentation, although the onus then shifts to you on the amount. Mutual fund trusts and corporations other than Canadian-controlled private corporations have a four-year period instead. Your own situation depends on the dates and facts, so confirm with a lawyer or accountant.