Selected for an audit? Do you know your rights? Worried about making things worse? Feeling overwhelmed, confused and anxious?
It can get complicated when an individual or small business seeks to challenge a tax assessment or other decisions made by the Canada Revenue Agency (CRA).
These are some of the most common issues that get disputed:
· Real Estate “flipping”
· HST/GST Builder issues
· Net-worth Assessments (Unreported Income)
· Canada Emergency Wage/Rent Subsidy (“CEWS” & “CERS”)
· Gross Negligence Penalties
What do you do if you don’t agree with the CRA’s adjustments and firmly believe they are in the wrong? You are not alone, and you have options.
When the CRA issues a Notice of Assessment or Reassessment, you can file a formal dispute via a Notice of Objection (“NOO”) with the Appeals Division of the CRA. You will have 90 days to file a Notice of Objection from the date noted on the CRA Notice of Assessment or Reassessment.
Your objection will be assigned to an Appeals Officer who will conduct a thorough review of your dispute and will give you an opportunity to fully present your side of the story.
When the officer has all of your information, they will compare it with the auditor’s position and try to determine which side is correct. The officer will likely have further questions for you, which will involve a deeper discussion about your case. In many instances, this also presents a good opportunity
to negotiate a mutually acceptable outcome based on the merits of your file.
Once their review has been completed, the officer will notify you of their decision in writing. The Appeals Officer may render any of the following decisions:
1. Full agreement with the taxpayer and the reassessment is removed.
2. Partial acceptance of the taxpayer’s arguments and a new reassessment will be issued.
3. Complete rejection of the taxpayer’s arguments. The reassessments will be “confirmed” and the taxpayer will have 90 days to decide if they wish to continue the dispute by filing a Notice of Appeal with the Tax Court of Canada.
At Farber Tax Solutions we know that any disputes with the CRA can be complex and time-consuming, and it is crucial that you connect with a trusted professional to represent your best interests during this dispute resolution process.
Giving you an opportunity to focus on a successful tax dispute resolution.
The advice and assistance of experienced professionals is a critical advantage to improve your chances of success.