The Proper Way to File an Objection for CRA Tax Appeal
Posted by support2 March 03 2014
Tagged Under : canada tax appeal, cra tax appeal, notice of objection, tax appeal
For any individual who thinks that his tax owing is more than he owes, the best way to reduce it to find legal reasons and evidence that the CRA (Canada Revenue Agency) has made a mistake in assessing you. Also in some cases CRA may take a decision that an individual does not agree with and in such a case a notice of objection can be filed after which the CRA Tax Appeal process starts.
A notice of objection simply explains in detail why you disagree with CRA on any given point. In order for your objection to be valid and your appeal process to act in your favor, it is essential that you present with your objection all facts, figures and evidence that support your claim or case. Simply filing an objection notice or CRA tax appeal is not a complex task and can easily be done however the real job to be done is the drafting of the objection or appeal notice in a way that it wins you the reassessment case.
The main thing to realize in a CRA tax appeal or objection is to know that the entire burden of the case is on the filer. It is the filer who is required to prove that CRA has been wrong in as simply saying that they are wrong will not win you the case. Proper documentary evidence and arguments should be made available to prove that CRA has been wrong in the case.
The common CRA tax appeal includes cases such as disallowed deductions and expenses, director?s liability, arbitrary assessments, denied benefits and credits, unreported income findings calculated through inaccurate analysis of bank deposits or net worth assessments and determination of personal service business. The best way to handle all these tax appeals are to hire professionals to do the best possible jobs for you as taking any action without having full knowledge of the area can ultimately cost you more than helping you out of a situation.
Also there are specific and rather strict time limits associated with filing of objection or CRA tax appeal, that is 90 day time period for individuals and so acting instantly and accordingly is very necessary. There are exceptional cases though where the CRA allows a person the right to objection even after 90 days; however this depends only on the decision of the CRA. It is recommended though that in order to avoid payment of inaccurate owing, early objection filing is a must. Many taxpayers heavily rely on any opinion that CRA agents give them regarding CRA tax appeal, however it should be noted that CRA is not in any way bound to perform as told by the agents to you. You will alone be held responsible to meet deadlines and file returns appropriately. Again hiring professional help from a reputed tax expert company will help in avoiding all such mistakes that can cost you dearly.
Also in some cases waivers are received from CRA tax appeal agents with decisions stated relating to objections and audits filed by taxpayers. Such a document should never be signed without proper consultation as often it removes the right to appeal to tax court thus having severe repercussions.
The winning or losing of a Canada tax appeal depends solely on how you present your objection case in front of the CRA. It is always best to hire professional help to ensure handling of your CRA tax appeal in the right manner and avoiding silly mistakes that can cost you seriously.