Disagree with a decision from the Canada Revenue Agency (CRA) resulting from an audit or an objection for Appeals? You can appeal to the Tax Court of Canada (TCC) regarding the assessment or determination. THIS IS A TIME SENSITIVE ISSUE. The Notice of Appeal needs to be filed within 90 days of the date of the reassessment or confirmation from the CRA.
Sometimes, this can be extended for an extra year – but that depends on the facts at hand. In the case that you missed the 90-day window we can help you apply for an extension to be able to file your appeal. The time to apply for this extension is a maximum of one year after the 90-day period has lapsed. To be successful in requesting an extension of time you need to be able to demonstrate:
- That within the appeal period:
- You could not appeal or have someone else appeal for you; and,
- You intended to appeal
- That it would be fair to grant your application
- That you applied as soon as you could, so you must contact us to get this done quickly
- That you have reasonable grounds for appealing
The TCC is an independent court of law that conducts hearings across Canada. Two procedures are followed at the TCC:
- The Informal Procedure
- The General Procedure
To qualify to proceed under the Informal Procedure:
- The amount of federal tax and penalties in dispute are $25,000 or less
- The disputed loss is less than $50,000
- Interest on federal taxes and on penalties is the only matter in dispute
The Informal Procedure is typically faster and much less expensive than the General Procedure, because the TCC is more flexible in the application of rules, evidence, and procedure. Any decision made by the Tax Court through the Informal Procedure will not be treated as a precedent for other cases, so this is a good alternative for income tax and GST cases that meet the threshold.
The TCC will hear your appeal under the General Procedure regardless of the amount in dispute in the case you do not qualify for it to be heard under the Informal Procedure.
The General Procedure requires your Notice of Appeal to be accompanied with a filing fee.
With this procedure all litigation steps are outlined and the timelines are usually mutually acceptable to both parties.
The litigation steps that need to be completed before scheduling your matter before the TCC include:
- A list and book of documents – this material is the evidence that both parties intend to rely on during the proceedings to advance their position
- Written or oral examinations for discovery – this step provides you with the opportunity to question a CRA representative with respect to the disputed decisions (including the procedure followed, the evidence reviewed, the law that was applied and anything else that may help you advance favourable arguments)
- Undertakings – this requires that both parties produce information or documentation that only came to light during the examination stage. These findings will typically allow the CRA to become more familiar with your matter and are likely to increase the potential for a settlement
The General Procedure is often better in promoting settlement discussions between the parties as both sides become more familiar with each other’s respective positions.
Federal Court of Appeal
In the case that the decision by the Tax Court of Canada is unfavourable you have the right to appeal to the Federal Court.
Contact a lawyer at Invictus LLP to see if this option is the right move for you.
Tax Court of Canada Resources
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!