CRA Notice of Objection: Everything You Need to Know
Filing a CRA Notice of Objection can be a complex and tedious process. If objecting a large tax assessment, experienced professions such as Farber tax can help you help you fight a CRA assessment by filing a Notice of Objection and taking care of the whole dispute process.
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All About the CRA Notice of Objection
Once you file your taxes, you receive a Notice of Assessment. Later, you may receive a Notice of Reassessment if the Canada Revenue Agency (CRA) goes back and looks at your return again. In either case, if you agree with the assessment or reassessment, you can pay the taxes owing and move on. However, if you disagree with the CRA, there are options. One option is to file a CRA Notice of Objection (NOO).
The CRA doesn’t always get it right. When disagreements arise, taxpayers can dispute a (re)assessment of tax, interest, or penalty by the CRA by filing a formal appeal, called a Notice of Objection, to the Appeals Division of the CRA.
What is the CRA Appeals Division?
The Appeals Division provides taxpayers with an impartial review of the CRA’s administrative decisions and is often the best chance to resolve an issue.
What is a CRA Notice of Objection?
A Notice of Objection allows you to formally object to a CRA assessment or reassessment. Once the appropriate form has been completed, your situation will be reviewed by the Appeals Division, which can lead to appeals to the Tax Court of Canada, the Federal Court of Appeal, and even the Supreme Court of Canada.
Any person who disagrees with a CRA assessment can file a Notice of Objection. However, there are certain time requirements and deadlines to keep in mind.
How Long Do I Have to File a CRA Notice of Objection?
It is important to note that a Notice of Objection must be filed within 90 days of the date of the (re)assessment. When your NOO is filed, it must list and describe each issue requiring a decision, the relief being sought, and reasons for which the CRA should allow the changes being requested. If the 90-day window has passed, taxpayers can request an extension of time to allow the objection to be filed, although this is a much more involved process.
If the CRA receives your objection on time, it will send you a letter of acknowledgement. If the objection was not filed within the 90 period and you did not obtain an extension, you will likely receive notice that the CRA is not considering your objection.
What Information is Included in a CRA Notice of Objection?
As mentioned, your objection must clearly state each issue, what relief is being sought, and why the CRA should consider the objection. The more information and evidence that you can provide to support your case, the better. You may wish to include copies of invoices, receipts, letters, and other documents that support your case.
It’s critical to take the time to not only present detailed information, but to do so in an organized and straightforward manner. The more facts that you have to support your claims, and the easier it is to understand your point of view, the greater the likelihood of your objection being accepted.
How Do I Win a Tax Dispute?
The advice and assistance of experienced professionals is a crucial advantage that taxpayers should leverage to improve their chances of success when objecting to a CRA assessment. Winning a tax dispute hinges on the taxpayer’s ability to convincingly disprove assertions and assumptions made by CRA, and to provide proof that adjustments in the favour of the taxpayer are merited.
Filing the Notice of Objection itself may be a simple task. However, in the months following the initial submission, the CRA will likely ask you for additional information and documentation and conduct a comprehensive review of the issues at stake. Due to the length and complexity of the process, many taxpayers find it difficult and cumbersome to manage alone. In addition, if your objection is not initially accepted, and you wish to appeal the decision, it is strongly advised that you have an experienced professional on your side during this process.
How Long Does It Take to Resolve a Tax Dispute?
The time required to resolve an appeal varies from file to file, but the majority of tax disputes are resolved in nine to twelve months.
Pausing Collections Action
Under certain circumstances, disputing a (re)assessment can also pause CRA collection action for the duration of the dispute, allowing taxpayers significant reprieve. However, interest continues to accumulate on the account while the appeal is underway. At the conclusion of the appeals process, interest applies retroactively on amounts that are still outstanding after the assessments are adjusted. If the appeal is denied, this means that interest will be charged on the full amounts that were in question. Depending on the size of your tax bill, this amount can be quite large.
How We Help
Disputing with the CRA is complex and time-consuming and can be very difficult for a taxpayer. The CRA and its agents are very experienced at negotiation and understand all aspects of tax law. If your situation ends up in court, it becomes even more critical to have a tax professional on your side.
At Farber Tax Solutions, we help our clients draft and submit Notice(s) of Objection, prepare additional submissions to the CRA to substantiate their claims, and communicate with the CRA on their behalf until a decision is rendered. We work with you to build your case, ensure that you know what evidence to supply to support your views, and help you understand every step of the process.
Working with our team gives you the best chance of success. Our firm has successfully used the CRA Notices of Objection process to contest various administrative decisions of the CRA including audits, previous objections (where permitted), arbitrary assessments, denied applications and more.
Contact us to learn more about how we can help.
Farber Tax Solutions can help you successfully deal with CRA problems. We utilize the experience of our tax experts to:
- 1| Offer a comprehensive solution that is focused on achieving the most favourable possible outcome for your tax issue;
- 2| Communicate with the CRA on your behalf and navigate the entire CRA dispute process; and
- 3| Offer a complete solution to your tax problems, including ex-CRA professionals and tax lawyers from Farber Tax Law.