If you believe that the CRA have made a mistake when calculating the amount of tax you have to pay, then you need to dispute this. If the thought of doing this fills you with dread firstly you will not be the first person to feel that way, and secondly you don’t have to go into battle alone. The CRA tax appeal may be difficult for someone who has never had to submit one before but for an expert, it is are part of their daily job.
A Notice of Objection has to be raised, and as the CRA will automatically believe that it has made the right decision, you need to have the evidence to prove that they are wrong. Every step of the way must be followed correctly, and there is a time limit for you to put in the CRA tax appeal.
In the Notice of Objection, you need to give all the information you want to be taken into account as part of the CRA tax appeal. This must be accurate and clearly explained, as any mistakes will mean that the CRA will feel justified in re presenting their original bill – plus any interest and charges.
One mistake that many people make is that they believe it is up to the CRA to prove that they have sent the correct bill out, when in fact it is up to you to prove that it is wrong. Evidence is needed and it has to be watertight and backed fully by correct arguments. This is where you need to have a tax expert who will be able to use the policies that the CRA have produced to prove your case. There is no room for error in the CRA tax appeal.
If you can get a copy of the report produced by the CRA, you will be well on your way to putting together the CRA tax appeal, and regardless of what you are told, you are entitled to this. By putting together the best possible Notice of Objection package, your tax representative can both cut the timescale and prevent the need to go to court.
It may be worrying that you are paying out money to someone to help you with an appeal you may believe you can make yourself, but the reality is the money you are spending now can lead to major savings in the future. By winning the CRA tax appeal, your bill can be reduced and you don’t have to worry about how to pay.
The CRA tax appeal may revolve around issues such as the amount of expenses claimed or the belief that there is money paid into your account that cannot be explained. You need to remember that there is a limited time period in which to make the CRA tax appeal and if you miss this you are in the hands of the CRA as to whether or not they will allow a late objection.