Tag Archives: CRA Tax Appeal Toronto

What You Need To Do When Facing the CRA Tax Appeal

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.

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.