What happens when a corporation fails to claim refundable tax in a timely manner? Does the amount not refunded reduce RDTOH anyway (per the CRA)? Not according to the Court in Presidential MSH Corporation v R, 2015 TCC 61. (See also Tawa Developments Inc. v R, 2011 TCC 440.)
Update September 15, 2015—The Tax Court has released yet another decision contradicting the CRA position on this subject. See Nanica Holdings Limited v R, 2015 TCC 85.
Update January 27, 2016—The CRA, at the 2015 CTF Conference, stated that it will now follow the findings of the tax courts in the cases above.
