So you’ve received a Notice of Reassessment (NoR) from the CRA, now what?
It’s important to know that this means that the CRA has gone back and reviewed your return in a more detailed manner and has found one or more problems. Upon reviewing the NoR, it will indicate the changes that the CRA made to your previously filed tax return, the taxes owing along with the resulting interest and possibly penalties. Also, the CRA charges compound daily interest dating back to when your taxes were originally due – not just from the date of reassessment. As such, this interest could be quite significant depending on the size of your tax bill and the tax years involved.
It is important to note that simply receiving a CRA reassessment does not mean that the agency believes you have committed tax fraud. Many reassessments are done for minor errors, such as a person entering information incorrectly on their tax return by accident. These typically don’t result in any further action. In most of these cases, people simply pay their taxes (if possible) and move on.
However, when you receive your CRA reassessment and disagree with it, there are actions you can take to resolve the issues. Before you decide how to proceed, it’s important to understand what your options are, and which one is right for you. The more knowledge you have, the better the decision you will make.
The CRA can be very difficult to deal with so having a tax professional on your side will give you the best chance of success. Therefore, it is strongly recommended that you speak with one as soon as possible. Our team is comprised of ex-CRA advisors and experienced tax lawyers, who understand what it takes to successfully negotiate with the CRA and resolve tax disputes. We’re here to help and you can start with a free consultation to discuss your options.
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