The Process of Filing a Notice of Objection

When the taxpayers have dispute with the CRA and they want the issues to be resolved, they can file the Notice of Objection to the CRA.

CRA can get suspicious if there are an exceptionally high cases of deductions for specific expenses. These deductions of one kind or another may lead to an audit or a review. CRA will then send its auditors to check the books and the records of that particular taxpayer. The auditor will examine all the invoices and the receipts and will ask questions concerning the areas of doubt. The taxpayer can challenge any type of concerns or suspicions that the auditor may have during the process of an audit or a review through a Notice of Objection.

The auditor will issue a proposal letter to the taxpayer, setting out the proposed reassessment. The letter will allow the taxpayer a period of thirty days to make any submission against the proposed reassessment.

Once the taxpayer’s final submission is reviewed, the auditor will prepare an audit report which is referred to as T20. This offers a factual as well as legal basis for the reassessment. The Notice of Reassessment is given to the taxpayer. It gives a summary of all adjustments that are made by the reassessment. This summary will fix the liability of the taxpayer under the Income Tax Act. The taxpayer is entitled to dispute it by filing a Notice of Objection.

When the Notice of Objection is rejected by the CRA, the taxpayer has another option left and that is to file an appeal to the Tax Court. The process of dispute can start by completing the objections in writing and sending it either by mail or directly to the Chief of Appeals in a District Office or a Tax Centre. The Form that has been set aside for Notice of Objection is T400A. This objection has to be filed before ninety days from the day of receiving the Notice of Assessment from the CRA.

The taxpayer will receive a letter from the CRA acknowledging a receipt of the Notice of Objection and a copy of the same is sent to the taxpayer’s representative. The Chief of Appeals will assign the Notice of Objection to an appeals officer for reviewing. The objections along with the taxpayer’s submissions are reviewed and a report is prepared. This report gives the conclusions of the appeals officer on the facts in relation to the tax laws and in connection with the disposition of the concerned objections.