Objections
Once the CRA has completed its audit and if the CRA disagrees with what you have filed, the CRA will generally issue a new Assessment or Re-Assessment. If you don’t agree with the CRA’s position, you must file an Objection within 90 days of the date of the Assessment or Re-Assessment.
The Re-Assessment will set out the taxes, interest and any penalties the CRA considers are owed as a result of the audit. If you disagree with the Re-Assessment, you must complete and submit a proper written Objection within 90 days of the date of the Re-Assessment. Failure to file the Objection within the time allowed will generally result in the Re-Assessed tax, interest and penalty amounts being deemed owed, the likelihood of the start of CRA collection proceedings and any defense of your position having been lost. Filing extensions are possible, but not without extraordinary circumstances and considerable risk of being rejected.
If you choose to file an Objection, there are three options available:
- Prepare and file it yourself;
- engage an experienced professional to assist you to file it on your behalf.
Your Objection must be drafted properly and include the basis upon which you disagree with the CRA. Your arguments must be supported with relevant evidence and prepared and organized in a logical and concise manner, consistent with the provisions of the Income Tax Act (Canada).
Taking into account the general complexity of dealing with the CRA and the Income Tax Act (Canada) and the often the nature of legal issues involved, we strongly recommend that you engage experienced tax counsel for the preparation and filing of the Objection.
Contact us in confidence and with the protection of solicitor client privilege to discuss your or your client's personal situation and let us start to help you.