How to Dispute a CRA Assessment with Confidence
Disputing a CRA assessment all starts with understanding these necessary steps.
Table of Contents
Dealing with the Canada Revenue Agency (CRA) can sometimes be a daunting task, especially when you receive an assessment or reassessment that you believe is incorrect.
Whether it’s due to a misunderstanding, an error on your tax return, or a discrepancy in the documents provided, you have the right to dispute the CRA’s findings.
Step 1: Understand Your Assessment Notice
Before initiating a dispute, it’s crucial to thoroughly review the Notice of Assessment or Reassessment you received from the CRA. This document outlines the details of your assessment, including the reasons for any changes made to your tax return.
Understanding the basis of the CRA’s decision is the first step in determining whether you have grounds for a dispute.
Step 2: Gather Your Documentation
If you decide to move forward with disputing the assessment, gather all relevant documentation that supports your case. This may include receipts, bank statements, contracts, or any other records that can substantiate your claim.
Having your documents organized and readily available will be crucial in presenting your case to the CRA.
Step 3: Contact the CRA
Often, issues can be resolved by simply contacting the CRA and discussing the assessment with an agent. This can be done by calling the phone number listed on your Notice of Assessment.
Be prepared to provide your social insurance number, your notice of assessment, and any relevant documentation to support your case.
Sometimes, misunderstandings or minor errors can be corrected at this stage without the need for a formal dispute.
Step 4: File a Notice of Objection to Dispute a Assessment or Reassessment
If your issue cannot be resolved through direct communication with the CRA, the next step is to file a Notice of Objection. This is a formal process where you officially dispute the CRA’s assessment.
According to the Income Tax Act, you must file your objection within 90 days of receiving your Notice of Assessment or Reassessment when disputing a CRA assessment, or reassessment.
While individuals can file a Notice of Objection on their own, it’s often beneficial to seek the assistance of a tax professional.
Firms like Sansar Solutions specialize in Canadian tax matters and can provide valuable guidance throughout the objection process.
A tax professional can help ensure that your objection is properly formulated, that all relevant documentation is included, and that your case is presented in the most effective manner possible.
To file a Notice of Objection, you have a couple of options. You can use the CRA’s online service through My Account, My Business Account, or Represent a Client.
Alternatively, you can send a completed Form T400A, Objection – Income Tax Act, to the Chief of Appeals in your regional Appeals Intake Centre.
Regardless of the method you choose, it’s crucial that your objection clearly states the reasons for your dispute and includes all relevant documentation to support your case.
Working with a tax professional like Sansar Solutions can provide several advantages. We offer a comprehensive review of your case, identify the strongest arguments for your objection, and ensure that all procedural requirements are met.
Additionally, our experience with the CRA’s processes can help navigate the complexities of tax disputes more efficiently.
While filing a Notice of Objection is a right afforded to all taxpayers, leveraging the expertise of a tax professional can significantly enhance the likelihood of a favourable outcome.
Whether you choose to proceed on your own or with professional assistance, it’s important to act promptly and provide a well-documented and clearly articulated case to the CRA.
Step 5: Await the CRA's Decision
After filing your Notice of Objection, the CRA will review your case and make a decision. This process can take some time, depending on the complexity of your dispute and the volume of cases the CRA is handling.
During this period, the CRA may contact you for additional information or clarification.
Step 6: Consider Further Appeals for CRA Assessment
If you disagree with the CRA’s decision on your objection, you have the option to appeal to the Tax Court of Canada. This must be done within 90 days of receiving the CRA’s decision on your objection.
Appealing to the Tax Court is a more formal process and may require legal representation.
Frequently asked questions about disputing a CRA assessment
Yes, you can appeal a CRA (Canada Revenue Agency) assessment if you disagree with it. The process begins with filing a Notice of Objection, which is the formal way to dispute an assessment or reassessment by the CRA. This step allows you to present your case to the CRA, explaining why you believe the assessment is incorrect and providing any relevant documentation to support your position.
To dispute a Notice of Reassessment from the Canada Revenue Agency (CRA), you should file a Notice of Objection within 90 days of receiving the notice of reassessment.
A Notice of Assessment is a statement sent by the CRA after processing your tax return. It details your tax obligation or refund for a particular tax year, including any changes the CRA made to your return.
You should consider disputing your CRA assessment if you believe there has been an error in the assessment of your taxes. This could be due to incorrect information, misunderstanding of your financial situation, or misinterpretation of tax laws.
A Notice of Objection is a formal way to dispute your CRA assessment or reassessment. It’s the document you file to officially challenge the CRA’s findings.
According to the Income Tax Act, you have 90 days from the date on your Notice of Assessment or Reassessment to file a Notice of Objection.
Yes, you can file a Notice of Objection online through the CRA’s My Account, My Business Account, or Represent a Client services. Alternatively, you can mail a completed Form T400A, Objection – Income Tax Act, to your regional Appeals Intake Centre.
Your Notice of Objection should clearly state the reasons for your dispute and include all relevant documentation to support your case. This may include financial statements, receipts, contracts, or any other evidence that supports your objection.
After filing, the CRA will review your objection and may request additional information. Once the review is complete, the CRA will make a decision and notify you. This process can take several months, depending on the complexity of your case.
Yes, if you disagree with the CRA’s decision on your objection, you can appeal to the Tax Court of Canada. This must be done within 90 days of receiving the CRA’s decision.
While not required, hiring a tax professional, can be beneficial. Tax professionals can help ensure your objection is properly prepared, provide advice on tax law, and represent you in dealings with the CRA.
Yes, if the final decision results in you owing additional taxes, interest will be charged on the amount owed from the original due date of the tax return.
Â
Share
Subscribe For Business Tax Tips & Insights
Get the update on business news, tax deadlines, and new insights to stay on top of your taxes.
Read more articles by Sansar Solutions
How To Outsource Bookkeeping for Small Business
Outsourcing bookkeeping for a small business has its advantages. Here are some things you should be aware of when considering to outsource bookkeeping for a
Understanding CRA Demand to File Letter: Your Rights & Next Steps
Received a CRA demand to file letter recently? Let us walk you through everything you should be aware of.Â
How to Navigate Taxes for Small Business Canada With the CRA
Having a hard time navigating your way through your taxes for small business? Here’s what you should know to file a small business tax return without issues.
How to Dispute a CRA Assessment with Confidence
Disputing a CRA assessment all starts with understanding these necessary steps.
Best Tax Benefits for Small Business Owners
Wondering what are the best tax benefits for small business owners? Here’s what you should know about tax benefits.
Corporate Year End Tax Filing Best Guide
Seek professional guidance for your corporate year end tax filing? Here’s what you should know.Â
