Category Archives: CRA Income Tax Appeal

Going About a CRA Tax Objection

If you have been contacted and told that you are going to be reassessed on the tax returns you have filed, you still have the right to defend your claims if you are not in agreement to what CRA is reassessing. If you do this it will not be a short process, as it can easily take months, and can even run into years until everything is dealt with. This is a long time to have a CRA tax objection hanging over your head, and you need to do all you can to have the problem resolved quickly and in your favor.

While not wanting to cause you too much concern, there are some people who are still waiting for a resolution to their CRA tax objection after several years and clearly this is not going to allow them to live the life they want to live. To prevent ending up in the same position, employ an tax expert who will be able to put some pressure on the CRA and in turn, they will take some of the pressure away from you.

The news is not all bad, as the reason it takes so long to deal with a CRA tax objection is that the CRA do make sure they get everything right. They don’t like admitting to mistakes, but if they have made one, it will be sorted out in your favor. The downside is that if CRA chooses to stand their grounds, your objection is denied and more time and money will be needed to do another appeal. In this sense, it is better to work with a tax professional who has experience in dealing with CRA tax objection in order for you to have the best percentage of case approval for the first time around.

The cost of losing a CRA tax objection will be high in monetary terms so you need to work closely with the people representing you and make sure you provide every scrap of information they request. Once the Notice of Objection has been filed, the wheels are in motion and there is a good side to this. There will be no attempt made to take payments from you towards your tax bill, but you will find that interest is added. Make sure that you put the money you are not paying away as if you lose the CRA tax objection you will suddenly have a bigger bill than before.

It may seem unfair that you are paying interest when the CRA tax objection took so long to decide and that was not your fault. It is possible that you can have taxpayer relief but this will not be guaranteed. Again discuss this with your representative. The initial debt will still stand, but there will be less to pay in interest and added charges.  You get two chances to apply for this, but if the second request is still not accepted that is the end of it and you need to pay the bill. Make sure you are applying for the right reason, not just because you were not aware of the issue at the time.

When to File A CRA Tax Appeal

If you receive a tax bill that you disagree with there maybe ways for the tax to be reduced. The CRA will present you with a bill in line with the Income Tax Act and will do all they can to collect the money they believe you owe. A lot of the time when there is an objection made, the reason for the disagreement is the interpretation of how the law should work, and success or failure with a CRA tax appeal will depend on whose interpretation is considered to be correct.

If you think you have a case but are not sure what to do next, then you can seek the advice of a tax experts and they will be able to go through the reasons why you may have a good case to put in a CRA tax appeal. If they don’t believe that you have a good case, then they should tell you this, and like it or not you will have to accept the tax bill is correct. Rather than a CRA tax appeal, they can still help you come to an arrangement to pay.

If a general meeting or conversation does not iron out the problems, then there is the need to escalate the issue and put in a Notice Of Objection which is important when making a CRA tax appeal. You need to make sure that you are within the deadline for doing this as each stage you follow will have a timetable and they will not all be the same. The person helping you with your case will be able to keep you up to date and will be able to reassure you that the time you are waiting is not that unusual and is not necessarily a bad omen.

A CRA tax appeal is not a short process, so there is no point trying to hurry things along. It could be six months before the appeal is heard and in some cases as long as 12 months. The person dealing with the CRA tax appeal will be new to your case so will not have any pre conceptions when going over the paper work. Throughout the appeal you will receive relevant documents and you can also ask for the whole file if you feel this will help you.

It will be in your interest to have someone helping you through this process, and as it is likely to be a long term procedure, you need to have someone who knows the tax law and is used to working within this environment. If you put in a CRA tax appeal, there are good sides and bad sides. The good is that there is no need to pay the amount owed until the appeal is decided, so you can have some breathing time. The bad side is that there is interest added. In reality it will be best to pay the balance especially if you are not 100% sure that your CRA tax appeal is going to go your way.

FILING CRA TAX OBJECTION

If you receive a notice from CRA tax and not ready to accept it, you may file Tax objection. You can either do it by yourself or can contact with an expert tax accountant to have them checked or reassessed.

How to File Tax Objection

It is fact that people most often do not have any idea about

  • If they are at all entitled to file objection to CRA tax assessment.
  • How to make the objection for reassessment,
  • What is the right time to file Tax Objection,
  • What should be the best supportive documents to boost the chance of winning the case, etc.

All the above factors make the most of the taxpayers find no other option but to swallow up the bitter pills and disburse the amount claimed by the CRASo having a skilled and veteran tax professional is an added advantage for the people who want to file Tax objection.  

You are entitled to withhold the amount till your case is officially evaluated by the CRA. In other words, if you have submitted tax objection, it is not necessary that the disputed amounts are to be paid instantly.  You can pass the time till Tax Appeal Division brings out its final decree about your case.

On the other hand, after you have submitted the objection, then you can ask for the disagreed amount of money that you have already paid to the CRA. For getting a refund of your excess money, never take it lightly by doing it yourself. It is wise to consult an expert for filing Tax Objection.

In case you receive a CRA Notice of Assessment, and want to submit a Tax Objection, you must do it within 90 days. If you want to win a tax appeal, the best thing to do is to hire a competent tax professional to appeal for you.

As there might be unusual variables in regard to the dates, it is a best idea to consult with a trained and experience tax professionals for better understanding of your situation. Always ensure that the documents in support of your Tax Objection are all valid and in correct format.

People most often ignore the idea of consultation with any of the trusted, skilled professionals that can deal with the Tax Objection successfully. Later they regret realizing the error they had made. They might face fiscal set back later because of the error committed at the time of filing.

After you file the tax objection, the Appeal Officer of CRA will review your stand. This officer is the part of the CRA but is autonomous to the Audit section that generally prepares the assessment.  Thus, it ensures that your appeal of objection is being attended by some new eyes. These people have no idea of the outcome.

You can talk to the Appeals Officer with a view to persuade the person about the authenticity of your position. You can also do the same in writing.  In reality, there is no formal “inquiry.” If the Officer is in agreement with you, the reassessment of your tax objection might be left out or might be prepared differently to reproduce your position.