The taxpayers have to realise that they have the onus of the burden on them to prove that the CRA is incorrect with its denial of their tax returns. The entire dialogue can be initiated towards Canadian tax objection by compiling the necessary documentary evidence and preparing all the legal arguments with the help of tax consultants to demonstrate how the CRA is wrong about your tax assessment.
The best way to go about a Canadian tax objection is to utilise a combination of the case law and your documentary evidence, legislation and the policies of the CRA. When all these factors are used to prove that the findings or the presumptions made by the CRA pertaining to your tax returns are not without flaw, you will be able to convince the CRA and its appeals agent to reverse their position on your file.
You can build up a very strong Canadian tax objection case if you do your homework right and find out as much as you can about the motivation behind CRA’s original decision on your tax return. Based on that finding, you can prepare strong evidence to present your objections. You can start exploring by getting hold of a copy of the CRA auditor’s report to be aware of the theory behind your case. This can be done through seeking access to information and privacy legislation. Your tax consultants will be able to guide you on how to access this.
The preparation of a strong Notice of Objection is the first important step in your Canadian tax objection mission. By preparing well, you can save yourself much expense of going to the tax court after further denials. Thousands of dollars and valuable time can actually be saved at the Canadian tax objection stage itself. If the CRA auditor is convinced with your arguments, you will not have to think in terms of all the litigation charges at a later time.
The topics that are covered most frequently in a Canadian tax objection case are deductions, expenses which have not been allowed, arbitrary assessments, benefits or credits that have been denied. Apart from these issues, it could be cases of a finding of unreported source of income about a taxpayer on CRA’s part by means of an incorrect net worth assessment or a bank deposit analysis.
The filing for the Canadian tax objection notice has to be done within ninety days of receiving the CRA Notice of Assessment. The taxpayer cannot procrastinate or take it easy after receiving the Notice of Assessment. If he or she misses this deadline of ninety days, it is left up to the discretion of the CRA to grant an extension of the deadline and this is limited to a period of an additional year if the excuse for filing late is justified adequately.
It does not make any sense to delay in filing the Notice of Objection. By filing within the time prescribed, you will be able to avoid the danger of being forced to pay taxes which are assessed inaccurately. It is wiser to seek professional tax consultant help on your tax issues before filing a Canadian tax objection.