In 2013-0479161E5, the CRA confirmed that a net capital loss not reported in a statute-barred year may be carried forward and used in an open year. A net capital loss for a year is defined in part as the excess of allowable capital losses over taxable capital gains for the year (s. 111(8)). In the case considered, the total net capital loss for a taxable year was not correctly reported in the tax return for the year, which had since become statute-barred for reassessment under s. 152(4). The CRA confirmed that this did not prevent the net capital loss from being calculated and carried forward to an open year under s. 111(1)(b). A net capital loss for a year exists independently of whether the amount is correctly reported in a tax return. This reasoning is consistent with the principle in New St. James Limited v. MNR, 66 DTC 5241, which permits the CRA to reassess a loss realized in a statute-barred year if that loss is actually applied in a later (open) year.