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Received an audit by the Canada Revenue Agency (CRA), or they issued an assessment against you and they haven’t talked to you? You aren’t the only one and you have options!

An income tax audit results are finalized through a Notice of Reassessment issued by the Canada Revenue Agency. Within 90-days from the date on the reassessment notice is the time frame to file a Notice of Objection. A Notice of Objection tells the CRA that you disagree with the results and would like to dispute the findings. In the chance that you missed the 90-day deadline you have the opportunity to file a request of a time extension within 12 months following the expiration of this time limit.

After a Notice of Objection being filed a CRA appeals officer will contact you in approximately 6 to 9 months. If the particular assessment/ reassessment concerns to income tax – all legal and collection actions will be held in a state of suspension. If the assessment/ reassessment concerns trust funds (GST/HST or Source Deductions) a negotiation of a nominal repayment plan will need to happen until the dispute is resolved to avoid collections or legal action.

In this interim period, it is very important to consult with a tax professional that will represent you through this dispute resolution process.

Invictus LLP’s role is to conduct a review of the books and records that were examined by the Canada Revenue Agency Auditor to look for discrepancies, errors, and incorrect application of the law. After this examination a lawyer from Invictus LLP will prepare a written representation, which are founded in law and fact. Once an Appeals Officer makes contact our findings will be submitted for review.

The Appeals Officer may render any of the following decisions:

  1. Vacate the reassessment, meaning that the Appeals Officer agrees with the taxpayer
  2. Vary the reassessment, meaning that the Appeals Officer accepts some of the taxpayer’s arguments and a new reassessment will be issued that reflects this
  3. Confirm the reassessment, meaning that the Appeals Officer rejects the taxpayer’s arguments

No matter the outcome you have the right to even further dispute the CRA’s findings through filing an Appeal in the Tax Court of Canada.

A Notice of Reassessment may also be issued by the CRA without an audit or if you do not respond to their audit questions. Including:

  • Net Worth Assessments;
  • Notional / Arbitrary Assessments;
  • Trust Examinations;
  • Third Party Assessments for Directors Liability; and
  • Third Party Assessments under Section 160 of the Income Tax Act.

If you disagree with a CRA Assessment or Reassessment, contact a lawyer at Invictus LLP to discuss your options.

CRA Resources

Objection Process

Collection of Disputed Amounts

Complaints and Disputes

Dispute Resolution Process

Resolving Your Dispute

Tax Court of Canada Resources

Appealing Income Tax & Excise Tax Assessments

Appealing Employment Insurance & Canada Pension Plan

Invictus LLP’s website contains information of a general nature, was not created to provide legal advice, and you must not rely upon it for legal advice. All tax related matters are fact-driven and will differ from the scenarios we have provided. If you have questions and need tax and legal advice, please contact al lawyer at our office for help!