What Is a CRA Waiver Form T2029 and Should I Sign It in Canada?
This answer covers Canadian federal tax law, which applies in every province.
A Form T2029 waiver lets the CRA reassess you after the normal period has ended, but only for the matters the waiver specifies. It must be filed within the normal reassessment period, and a waiver included in the return when it is originally filed is not valid. For an individual, that period ends three years after the earlier of the original notice of assessment and the original notification that no tax is payable.
A waiver limits the Minister's power to reassess to the matters specified or reasonably related to them. The CRA's own audit manual says a waiver should be as specific as possible, and a waiver naming only the company and year is not in the taxpayer's favour. The CRA will not request a blanket waiver in advance of an audit or one solely to extend audit time.
If you sign, you can later revoke the waiver using Form T652; the revocation takes effect six months after the notice is filed and cannot be rescinded once filed. Whether to sign, and how narrowly to word it, depends on what the audit is about, so it is worth having a lawyer or accountant review the form before you return it.
Key takeaways
- A valid waiver filed within the normal reassessment period lets the CRA reassess later, but only for the matters the waiver specifies.
- A waiver included in the return when it is originally filed is not valid.
- The CRA's own manual says a waiver should be as specific as possible, and one naming only the company and year is not in the taxpayer's favour.
- A waiver can be revoked on Form T652, with the revocation taking effect six months after the notice is filed.