When a taxpayer disagrees with the Notice of assessment sent by the CRA, he or she will have the right to contest on such an assessment to the authorities through a CRA Notice of Objection and if that is also denied, then he can put his case up before the administrative courts by means of an administrative appeal.
The taxpayer can file a CRA Notice of Objection generally within a ninety day period after the issuance of a Notice of Assessment. The taxpayer has to explain in full the reasons why he or she thinks the assessment is not acceptable when there is a decision taken to submit the CRA Notice of Objection.
The CRA Notice of Objection has to be handled by an officer assigned to that objection by the CRA. This officer will have to scrutinize the contentions of the taxpayer as detailed in the CRA Notice of Objection. It is important, therefore, to submit a complete file at the CRA Notice of Objection stage that includes a full statement of the facts to support the objection, referring to the relevant statutes and also the interpretation bulletins. The tax accountants will also help with the referrals to the appropriate cases in law.
There are cases when a taxpayer can take objection a Notice of Assessment sent by the CRA even if that assessment agrees with what was filed by the taxpayer. There are occasions when CRA commits some mistakes on the tax assessments. It is all part of life. Corrections can sometimes be done by means of informal discussions and proper correspondence with the CRA. It is, however, important to keep in mind the formal deadline that is set by the CRA for the filing of the CRA Notice of Objection. This deadline is ninety days after the mailing date of the Notice of assessment and one year after the due date for the filing of the tax return.
The CRA Notice of Objection has to be filed on Form T400A or by means of an informal letter or registration of a formal dispute through the `my Account’ feature on the website of the CRA. A letter sent to the office of the CRA or a fax to their local assessing office for revision of the Notice of assessment could be considered valid as a CRA Notice of Objection even if it is not filed on the Form T400A.
Whatever the channel you select for submitting the CRA Notice of Objection, the delivery proof has to be carefully retained. If the deadline for the CRA Notice of Objection is missed by the taxpayer, there can be a suitable adjustment to extend the date but CRA is not bound legally to carry out the extension.
It is always better to seek professional advice before submitting the CRA Notice of Objection and before implementing any arrangements concerning your tax planning. The CRA Notice of Objection has to contain relevant supports by means of documentation such as agreements, bank statements and receipts.