When people receive a notice of tax assessment, they are advised to scrutinize the amount of income that is assessed along with deductions and allowances. They could either do it themselves or have these figures checked by?tax accountants.?The basis of the assessment on the Assessor?s Note has to be understood. There are cases when the allowances and the deductions are disallowed and the reasons for such dis-allowance have to be thoroughly understood. If there are disagreements with the assessment, a?tax objection?may be lodged and a?CRA tax appeal?may be filed if you are not happy with the response to your application.
How to start a tax objection
The initial step that has to be taken when resolving a dispute with CRA (Canada Revenue Agency) is to file a Notice of Objection. A?tax accountant?will apprise you of the procedure and give general information concerning the process of filing a?tax objection. There are different guidelines for individuals, corporations and certain provincial regions.
If action is not taken to challenge the notice of assessment, then the entire tax amount has to be paid to the CRA. In order to make up for the burden of proof which is laid on the shoulders of taxpayers, CRA has provided a division for internal appeals that allows the taxpayers an opportunity to go through a fair review without the hassles of getting involved in a court of law.
The deadlines of tax objection
Filing a?tax objection?does not cost anything. The procedure of filing may vary based on the type of assessment the objection is being made on. There are stringent deadlines that have to be met in terms of filing. If these deadlines are not met, then the taxes have to be paid in full unless taxpayers have solid ground to request for extension.
When there is a disagreement with the tax assessment, the first thing that has to be done is to approach the CRA to ascertain the discrepancies. There is a possibility of informally explaining the reasons for the?tax objection?on account of errors in the assessment and they can be resolved. If the CRA fails to make the necessary corrections before the deadline for filing an objection, a basic Notice of Objection can be filed to get the dispute noted on the file, explaining the whole chronology of events.
When you gather the information and have the documents that you need to back up your?tax objection, you can go ahead and file a complete Objection and add further information to the elementary notice you had filed earlier. All evidence and reasons have to be furnished to support your case.
The outcome of tax objections
The CRA response may be expected any time within a year from the date of filing your?tax objection. It is wiser to decide to pay your taxes in full in such a case so that there are no further debits of interest charges on your tax account while the?tax objection?is under process. When you get a response to your objection application and you are still in disagreement with their response, you have the right to file a?CRA tax appeal to tax court.
If you have unfair assessment and need to consider tax objection, contact Tax SOS, the tax objection veteran in the tax industry, for help at 1-877-982-9767 and get your free complementary consultation.