Everything in Part 3 was about the window you have before CRA finds the problem. This part is about what happens once that window closes. If you've received a Notice of Intent to register, CRA has already identified you as someone they believe should be registered and isn't. The situation has changed — and so have your options.
CRA Can Notify You Directly
Under ETA s. 241(1.3), if CRA believes you're required to be registered and haven't applied, they can send you formal notice of that belief. Once you receive it, you have two options under ETA s. 241(1.4): apply for registration, or satisfy the Minister that you actually aren't required to register. Doing nothing isn't a third option that just lets the matter sit.
If You Don't Respond, CRA Can Register You Anyway
This is the part that makes the notice more than a formality. If nothing is done within 60 days of the notice being sent, ETA s. 241(1.5) allows the Minister to register you unilaterally — without your application, without your cooperation, and without your input on the details. Registration happens either way. The only question is whether you're the one who controls how it happens, or CRA is.
Voluntary Disclosure Is Off the Table Now
This is the biggest practical difference from Part 3. The Voluntary Disclosures Program depends on coming forward before CRA has identified and raised the issue themselves (CRA Information Circular IC00-1R6). Once a Notice of Intent has gone out, the matter is no longer undiscovered — CRA has already found it and told you so. Generally speaking, VDP is no longer available for this issue at this point. Whatever penalty and interest relief might have been available through voluntary disclosure is off the table now.
The Underlying Liability Doesn't Change
It's worth being clear about what a notice does and doesn't do. Getting a notice doesn't change how much you actually owe, or how it's calculated. Everything covered in Parts 1 and 2 still applies in full:
- If you never charged GST, the tax-extra vs. tax-included question from Part 1 still applies the same way.
- If you charged GST and didn't remit it, that money is still trust money under s. 222, and the exposure described in Part 2 — including director liability — still applies the same way.
A notice doesn't change the math. It only removes your ability to get ahead of it.
Interest, Penalties, and the Extended Reassessment Period Keep Running
None of the costs described in earlier parts pause because a notice has arrived:
- Interest under ETA s. 280 keeps accruing for the period leading up to and through the notice.
- The late-filing penalty under ETA s. 280.1 continues to apply.
- If the facts support it, the extended reassessment period under ETA s. 298(4) — which removes the normal 4-year limit in cases of fraud or misrepresentation — stays in play.
Receiving the notice is a milestone in the process. It isn't a pause button.
What Actually Matters at This Stage
Even though the option to prevent this situation is gone, how you respond in the 60 days after the notice still matters. Responding with a complete application — rather than letting CRA register you unilaterally — gives you some control over the registration effective date and the chance to get your records organized before CRA imposes a result on you. At this point, the goal shifts from prevention to damage control.
Given what's typically at stake by this stage — unremitted trust amounts, possible director liability, an extended reassessment period — this is not a stage to navigate on your own. This is the point in the process where proper representation isn't optional.
Quick Reference: Once CRA Has Sent a Notice of Intent
| Issue | Legislative / Program Basis | What It Means for You |
|---|---|---|
| CRA can formally notify you | ETA s. 241(1.3) | CRA has identified you as someone they believe should be registered |
| Your options once notified | ETA s. 241(1.4) | Apply to register, or satisfy the Minister you're not required to |
| No response within 60 days | ETA s. 241(1.5) | CRA can register you unilaterally, with an effective date it sets |
| Voluntary Disclosures Program | IC00-1R6 | Generally no longer available — the matter is no longer undiscovered |
| Underlying tax liability | ETA ss. 165, 221, 223, 222; CRA P-118R | Calculated the same way as before — the notice doesn't change the math |
| Interest | ETA s. 280 | Continues to accrue through and after the notice |
| Late-filing penalty | ETA s. 280.1 | Continues to apply |
| Extended reassessment period | ETA s. 298(4) | Stays in play if the facts support fraud or misrepresentation |
The Bottom Line
A Notice of Intent means CRA has already found the problem, which closes off the option to come forward first that Part 3 was about. What you owe hasn't changed, but your ability to shape the outcome has narrowed considerably — and it keeps narrowing the longer the 60-day window sits unanswered. At this stage, responding properly and getting professional representation isn't about avoiding the situation anymore. It's about managing what's already in motion.
This article is for general informational purposes only and does not constitute legal or tax advice. For guidance specific to your situation, consult a CPA or Canadian tax professional.