Understanding Reassessments If you are dealing with a reassessment in real time, align this process with how to appeal a CRA decision and how to dispute a CRA assessment or reassessment . Confirm what triggered the change before verifying the numbers on your Notice of Assessment.
Types of CRA Adjustments Type What It Means Reassessment CRA changed your return Adjustment You requested a change Audit assessment Result of review/audit Arbitrary assessment CRA filed for you
Common Reassessment Reasons Reason Example Disallowed deduction RRSP over-contribution Income addition Unreported T4/T5 Credits denied DTC not approved Audit adjustment Business expenses disallowed Error correction Math mistakes
The Appeal Process Three Levels of Dispute Level Timeline Cost 1. Notice of Objection 90 days to file Free 2. Tax Court of Canada 90 days after CRA decision Varies 3. Federal Court of Appeal 30 days after Tax Court Higher
Level 1: Notice of Objection Deadline Situation Deadline Standard 90 days from reassessment date Extension Up to 1 year from deadline Extension requirements Reasonable grounds, file within 1 year
How to File Method Details Online CRA My Account → Register a dispute Mail Form T400A or letter to Tax Centre Fax To Appeals Intake Centre In person At tax services office
What to Include Element Details Tax year(s) Which years disputed Issues What CRA got wrong Facts Your version of events Legal grounds Tax law supporting you Documents Receipts, statements, etc. Relief requested What you want
Sample Objection Letter [Your Name]
[Address]
[SIN]
[Date]
CRA Appeals Division
[Address]
Re: Notice of Objection - [Tax Year]
I am filing this objection to the Notice of Reassessment
dated [date] for the [year] taxation year.
Issue: [Describe what CRA changed]
Facts: [Explain what actually happened]
Position: [Why you disagree with CRA]
Supporting Documents: [List attachments]
Relief Requested: [What you want - reversal, adjustment]
Sincerely,
[Your name]
What Happens After Filing CRA Appeals Process Stage Timeline Acknowledgement 2-4 weeks Assigned to officer 1-6 months Review 3-12+ months Decision Notice of Confirmation or reassessment
Possible Outcomes Outcome Meaning Allowed in full You win completely Allowed in part Partial victory Confirmed CRA stands by reassessment Varied Different adjustment
Level 2: Tax Court of Canada When to Go to Court Situation Consider Court CRA confirmed objection Next step CRA took 90+ days Can appeal directly Strong case Worth pursuing Significant amount Justifies cost
Time Limit Trigger Deadline Notice of Confirmation 90 days to appeal CRA didn’t respond (90+ days) Anytime after
Court Procedures Procedure Amount Details Informal Under $25,000/year Simpler, no lawyers needed General Over $25,000/year Formal, usually need lawyer
Feature Details Cost $100 filing fee Representation Self, accountant, or lawyer Rules Simplified Evidence More flexible Time Faster resolution
Collections During Dispute Requesting Collections Hold Rule Details Automatic hold Collections paused during objection Court appeal May need to request hold Interest Continues to accrue Security CRA may require
Paying While Disputing Option Consideration Pay in full Refunded if you win, with interest Pay nothing Collections held but interest accrues Pay partial Reduce interest accumulation
Tips for Success Building Your Case Tip Why Gather all documents Prove your position Be detailed Explain clearly Cite tax law Strengthen argument Organize chronologically Easy to follow Get professional help If complex
Common Mistakes Mistake Impact Missing deadline Lose appeal right Vague objection Weak case No documents Can’t prove claims Emotional language Unprofessional Wrong form/process Delays
When to Get Help Consider a Professional Situation Recommended Large amounts Yes Complex issues Yes Business matters Yes Simple errors Maybe self-file Audit-related Yes
Who Can Help Professional Best For Accountant (CPA) Tax calculations, basic disputes Tax lawyer Complex legal issues, court Tax specialist Specific expertise
Cost Considerations Service Typical Cost Accountant review $200-$1,000 Objection assistance $500-$3,000 Tax Court (informal) $2,000-$10,000+ Tax Court (general) $10,000-$50,000+
Taxpayer Bill of Rights Your Rights Right Protection Be treated professionally Respect and courtesy Privacy Information confidential Complete information Know your obligations Fair application Consistent interpretation Appeal Formal dispute mechanism
Taxpayer Ombudsman When to Contact Issue Service complaints Not audit disputes Process delays Unresponsive CRA Conduct issues CRA behavior
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