The CRA will do the best they can to get the tax assessment they present right, but there will be occasions when this is not the case and the bill you receive is much higher than it should be. As soon as you become aware that this has happened you should contact the CRA and let them know that you wish to put in a CRA tax appeal. This will not be an easy process, as you will be pretty much taking on the government but there are well qualified professionals who know the tax system well and will be able to help with your CRA tax appeal.
You have to be prepared for the fact that the CRA is not going to admit they have a made a mistake right away, and it will be up to you to prove that you are right and they are wrong. This is why your CRA tax appeal needs the backing of someone who can act quickly and knows the way the tax system works. The appeal will have to be carried out the way the CRA say and all the evidence submitted as part of the CRA tax appeal needs to be sent in according to their deadlines.
A Notice of Objection needs to be submitted and this is where you put the reasons you think the assessment you have received is wrong. If you can not provide sufficient evidence to show CRA the mistakes, it will be hard to win the CRA tax appeal. if you are not able to show you have clear records and not able to prove what you are claiming, you run the risk of losing the CRA tax appeal. There can also be interest and charges added.
You will have to prove you are right, not the CRA. Many people who started CRA tax appeal think that the CRA needs to be the one proving that the assessment is right. It can come as a shock when their representatives tell them that the onus is on taxpayers not the CRA. You have to provide this evidence and then the tax consultant needs to put this evidence into a coherent argument.
If you are worried that paying for advice for your CRA tax appeal will be wasted money the truth is that you cannot afford not to do it. With just 90 days to get everything ready and put in the CRA tax appeal you need someone who can begin work right away. This 90 day limit is very important as there is little reason why the CRA should extend this and it is certainly against their best interests.