The Canada Revenue Agency reviewed your return and disagreed with your reporting. You want to file a dispute, but what are your rights and next steps? A little Taxes 101 on CRA disputes can shed some light.
CRA Disputes
In the last article, we learned about the self-reporting tax system we have in Canada and some types of pre-assessment and post-assessment reviews the Canada Revenue Agency (CRA) can conduct. If the CRA disagrees with your reporting, you have rights as a taxpayer to object to their assessment or reassessment.
File an Objection
Filing an objection is the first step in the formal process of resolving a dispute with the Canada Revenue Agency. After filing, the Appeals division will review the objection and related assessment, determination, or decision. The Appeals division maintains an impartial structure.
The time limit for filing an objection for an individual is the later of:
- One year after the date of the return’s filing deadline, and
- 90 days after the day the CRA sent the notice
The objection can be filed online using CRA’s “My Account” or by sending a written letter by postal mail to the Chief of Appeals at the Appeals Intake Centre (if writing, CRA Form T400A is recommended).
If you did not file your objection on time because of circumstances under your control, you can request a time extension online through CRA’s “My Account” or by writing to the Chief of Appeals explaining why you didn’t file your objection on time. If the Chief of Appeals refuses the time extension, you can apply to the Tax Court of Canada for further consideration, as long as you do so within 90 days of the CRA’s notice of refusal.
Similarly, if you disagree with the Appeals Division’s decision, you can then appeal to the Tax Court of Canada.
If you require additional assistance with a CRA dispute, reach out to us at Compass CPA. We’re here to help.
