CRA Tax Objection Lawyers in Toronto
Disagree with a CRA assessment or reassessment? Our tax lawyers represent individuals and businesses throughout the Notice of Objection and CRA appeals process.
Received a CRA Assessment or Reassessment You Disagree With?
If you disagree with a Canada Revenue Agency (CRA) Notice of Assessment or Notice of Reassessment, filing a Notice of Objection may be the first formal step in challenging the CRA’s position.
A CRA objection allows a taxpayer to dispute an assessment or reassessment and have the matter reviewed through the CRA’s appeals process. Depending on the issues involved, an objection may concern income, deductions, credits, GST/HST, penalties, interest, corporate tax matters, or other amounts assessed by the CRA.
At KR Law Firm, our tax lawyers represent individuals, businesses, and corporations in CRA objections and related tax disputes. We can review the assessment or reassessment, identify the legal and factual issues in dispute, prepare the Notice of Objection, develop supporting submissions, and communicate with the CRA throughout the appeals process.
What Is a CRA Notice of Objection?
A Notice of Objection is a formal dispute filed with the CRA when a taxpayer disagrees with an assessment, reassessment, or certain other tax determinations.
Filing an objection generally moves the dispute from the assessing or audit stage into the CRA appeals process. An appeals officer may review the assessment, the taxpayer’s arguments, supporting documents, and the CRA’s position before deciding whether the assessment should be confirmed, varied, or reassessed.
A properly prepared objection should clearly identify the matters in dispute and explain the factual and legal basis for the taxpayer’s position.
What CRA Assessments Can Be Challenged Through an Objection?
Depending on the legislation and type of assessment involved, a Notice of Objection may be available for matters such as:
- Personal Income Tax Assessments and Reassessments: Disputes involving reported income, deductions, credits, taxable benefits, business income, investment transactions, and other personal tax matters.
- Corporate Income Tax Assessments: Disputes involving corporate income, deductions, shareholder transactions, expenses, credits, and other corporate tax issues.
- GST/HST Assessments: Disputes involving taxable supplies, input tax credits, remittances, registration, and other GST/HST issues.
- Penalties and Interest Included in an Assessment: Challenges to penalties or interest where the amount forms part of an assessment or reassessment and the applicable legislation provides objection rights.
- Other Tax Determinations: Certain loss determinations, benefit-related determinations, or other decisions may also have formal objection rights depending on the legislation involved.
Not every CRA decision is challenged through a Notice of Objection. The appropriate dispute process depends on the type of decision and the statutory rights available.
CRA Notice of Objection Deadlines
Objection deadlines are important and can vary depending on the taxpayer and the type of assessment involved.
Individuals
For many individual income tax objections, the deadline is generally the later of:
- one year after the filing deadline for the tax return; or
- 90 days from the date of the Notice of Assessment or Notice of Reassessment.
Different rules can apply to certain determinations and other types of assessments.
Corporations
Corporations generally have 90 days from the date of the Notice of Assessment or Notice of Reassessment to file a Notice of Objection.
GST/HST Objections
For many GST/HST assessments, the objection deadline is generally 90 days from the date of the Notice of Assessment.
Because objection deadlines are statutory, taxpayers should review the applicable deadline as soon as they receive an assessment or reassessment.
What If You Miss the CRA Objection Deadline?
In some circumstances, a taxpayer who misses the original objection deadline may apply for an extension of time to file a Notice of Objection.
An extension application generally must be made no later than one year after the original objection deadline and must satisfy the applicable statutory requirements.
The taxpayer may need to explain why the objection was not filed on time and demonstrate that the conditions for an extension are met.
If you have missed an objection deadline, it is important to obtain advice promptly because additional time limits may apply.
What Should a Notice of Objection Include?
A Notice of Objection should do more than simply state that the taxpayer disagrees with the CRA.
Depending on the case, an objection may include:
- A clear description of the assessment or reassessment being challenged;
- The specific issues in dispute;
- The relevant facts supporting the taxpayer’s position;
- Legal arguments explaining why the CRA’s position should be changed;
- The relief or adjustment being requested; and
- Supporting documents, accounting records, contracts, correspondence, or other evidence.
For certain large corporations, additional statutory requirements apply to the content of a Notice of Objection, including identifying each issue, the relief sought, and the facts and reasons relied upon.
The strength of an objection often depends on how clearly the disputed issues are framed and how well the evidence and legal position are developed.
What Happens After You File a Notice of Objection?
After the CRA receives a Notice of Objection, the matter is generally reviewed through the CRA appeals process.
A typical objection may involve the following stages:
1. CRA Receives and Reviews the Objection
The CRA reviews the objection and the assessment or reassessment being disputed.
2. Assignment to an Appeals Officer
An appeals officer may review the file, the CRA’s position, the taxpayer’s submissions, and the evidence available.
3. Requests for Additional Information
The appeals officer may request further documents, explanations, calculations, or submissions where additional information is required.
4. Taxpayer Submissions and Advocacy
The taxpayer or authorized representative may provide additional factual explanations, legal arguments, and supporting evidence during the objection process.
5. CRA Objection Decision
After reviewing the matter, the CRA may confirm the assessment, issue a reassessment, or otherwise vary the amount in dispute depending on the circumstances.
How Our Tax Lawyers Assist With CRA Objections
1. Review the Assessment or Reassessment
We review the CRA’s assessment, reassessment, audit findings, correspondence, and supporting records to determine the issues in dispute and the potential grounds for objection.
2. Identify Legal and Factual Issues
We assess whether the CRA’s conclusions are supported by the facts and applicable tax law and identify the issues that should be challenged.
3. Prepare the Notice of Objection
We prepare objections that clearly identify the disputed issues, relevant facts, legal arguments, and relief sought.
4. Develop Supporting Evidence and Submissions
Where appropriate, we organize supporting documents, financial records, contracts, correspondence, and other evidence and prepare written submissions addressing the CRA’s position.
5. Communicate With CRA Appeals
Once authorized, our tax lawyers can communicate with CRA Appeals, respond to information requests, make submissions, and advocate for the taxpayer’s position throughout the objection process.
6. Advise on Tax Court Appeals if the Dispute Continues
If the objection is not resolved satisfactorily, we can advise on whether an appeal to the Tax Court of Canada is available and appropriate.
Learn more about our Tax Court appeal representation.
CRA Objections Following an Audit
Many objections arise after a CRA audit results in a Notice of Reassessment.
During an audit, the CRA may propose adjustments to income, deductions, GST/HST, credits, or other tax amounts. If those adjustments are ultimately reflected in a reassessment and the taxpayer disagrees, the objection process may provide the next formal opportunity to challenge the CRA’s position.
The issues developed during the audit stage can become important during an objection, including the evidence provided, factual findings made by the auditor, and legal positions advanced by both sides.
Learn more about our CRA audit representation.
Income Tax and Corporate Tax Objections
Income tax objections may involve a wide range of issues, including:
- Unreported or disputed income;
- Business income and expenses;
- Shareholder benefits or shareholder loans;
- Capital gains and business income characterization;
- Deductions and tax credits;
- Foreign income and international tax issues;
- Real estate transactions;
- Penalties and interest included in an assessment; and
- Other personal or corporate tax adjustments.
The appropriate objection strategy depends on the nature of the assessment, the evidence available, and the legal issues involved.
GST/HST Objections
GST/HST objections may involve disputes concerning:
- Input tax credits;
- Taxable and exempt supplies;
- GST/HST registration;
- Unreported or allegedly uncollected GST/HST;
- Real estate transactions;
- Documentation supporting input tax credits;
- Penalties and interest; and
- Other GST/HST assessments or reassessments.
GST/HST disputes have their own statutory objection rules and deadlines, so the applicable assessment and legislation should be reviewed carefully.
Does Filing a CRA Objection Stop Collections?
Whether CRA collection activity is postponed while an objection is pending depends on the type of tax and assessment involved.
For many disputed income tax assessments, the CRA generally postpones collection of the disputed amount while the objection is under review. However, important exceptions can apply.
For example, different collection rules may apply to amounts involving source deductions, GST/HST, large corporations, or other specific tax liabilities. Interest may also continue to accrue on unpaid amounts even where collection activity is postponed.
If you are dealing with an outstanding balance or CRA enforcement action, learn more about our CRA collections and tax debt services.
What Happens if the CRA Confirms the Assessment?
If the CRA confirms the assessment or issues a reassessment after reviewing the objection and the taxpayer still disagrees, an appeal to the Tax Court of Canada may be available.
For many income tax and GST/HST matters, the deadline to appeal to the Tax Court is generally 90 days from the date of the CRA’s objection decision.
In some circumstances, a taxpayer may also be able to appeal to the Tax Court if the CRA has not issued an objection decision within the applicable statutory period.
Tax Court litigation is a separate stage of the dispute process and involves different procedures, evidentiary requirements, and litigation considerations.
Learn more about our Tax Court appeals.
Why Work With KR Law Firm on a CRA Objection?
CRA objections can involve complex tax legislation, detailed financial evidence, and legal issues that may later proceed to litigation.
- Tax-Focused Legal Representation: Our practice focuses on Canadian tax matters and disputes with the CRA.
- Detailed Review of the Assessment: We analyze the CRA’s factual and legal position before preparing the objection.
- Structured Legal Submissions: We develop objections and supporting submissions that clearly identify the issues, evidence, and legal basis for the taxpayer’s position.
- Direct Representation Before CRA Appeals: Once authorized, we can communicate with appeals officers and respond to questions and document requests.
- Continuity Through Tax Court: Where appropriate, we can continue representing clients if the dispute proceeds beyond the objection stage.
Frequently Asked Questions About CRA Objections
What is a CRA Notice of Objection?
A Notice of Objection is a formal process used to dispute certain CRA assessments, reassessments, or determinations. It generally results in the disputed matter being reviewed through the CRA appeals process.
How long do I have to file a CRA objection?
The deadline depends on the type of taxpayer and assessment. For many individuals, the deadline is the later of one year after the filing deadline for the return or 90 days from the assessment or reassessment. Corporations and many GST/HST objections generally have a 90-day deadline.
What happens if I miss the objection deadline?
You may be able to apply for an extension of time to file the objection. An extension application generally must be made within one year after the original objection deadline and must satisfy the applicable statutory conditions.
Can I object to a reassessment issued after a CRA audit?
Yes, where the legislation provides objection rights. A CRA audit commonly results in a reassessment, and the Notice of Objection process may be used to formally dispute the resulting adjustments.
Do I have to pay the disputed tax while my objection is pending?
It depends on the type of tax and assessment. Collection of many disputed income tax amounts is generally postponed during the objection process, but exceptions apply, including certain GST/HST, source deduction, and large-corporation amounts. Interest may continue to accrue.
Can I provide new documents during the objection process?
Yes. Depending on the matter, additional documentation, evidence, explanations, and legal submissions may be provided during the CRA appeals review.
How long does the CRA objection process take?
There is no single timeline for every objection. The length of the process can depend on the complexity of the issues, the amount of documentation involved, CRA processing times, and whether additional information or submissions are required.
Can a lawyer deal with CRA Appeals on my behalf?
Yes. A taxpayer can authorize a lawyer to communicate with the CRA and represent them during the objection process.
What happens if the CRA denies my objection?
If the CRA confirms the assessment or issues a reassessment and you still disagree, you may have the right to appeal to the Tax Court of Canada, subject to the applicable rules and deadlines.
Can I go directly to the Tax Court of Canada?
In most income tax and GST/HST disputes, a Notice of Objection must first be filed with the CRA before the matter can proceed to the Tax Court. There are also circumstances where an appeal may be available if the CRA has not decided the objection within the statutory period.
Speak With a CRA Tax Objection Lawyer
If you have received a CRA Notice of Assessment or Notice of Reassessment that you disagree with, KR Law Firm can review the assessment, determine the applicable objection deadline, and advise you on the next steps.
Early advice can be especially important where the assessment involves significant amounts, complex transactions, penalties, GST/HST, corporate tax matters, a missed objection deadline, or issues arising from a CRA audit.
Contact KR Law Firm to Book a Free Consultation with one of our tax lawyers.