The Mechanism of CRA Tax Appeal
Posted by TaxSOS October 14 2013
Tagged Under : canada tax appeal, cra tax appeal, tax appeal
Paying taxes is the legal obligation for every individual, business or organizing that?s earning an income. The collection of taxes is undertaken by a particular organization that has been established by the government of a country. For Canada, the Canadian Revenue Agency or the CRA as its known is responsible for collecting taxes from the citizens of the country. Usually individuals and businesses calculate the taxes and file returns with the CRA. However, in some scenarios, the CRA will reassess the tax filed and re-calculates the tax owing. When this happens, sometimes the individuals or businesses might not agree on the tax assessment made by the CRA.
In such a situation, an tax appeals process has been instituted by the Canadian Revenue Agency that can be used if people do not agree with the tax liability that has been assessed. If the taxes of people have been adjusted or they are asked to pay more than they owe, they can opt for CRA tax appeal. People will not be charged unjustly if they have complete knowledge of their appeal rights. The CRA usually sends a letter to the party when it?s making adjustment to their tax liability.
Representation in CRA Tax Appeal
People have the option of appealing interest charge, levies, liens and even penalties that may be applied. People have the option to represent themselves in the appeals process. Other individuals that may assist in the CRA tax appeal process include those accountants and attorney that are certified in the tax practices of the CRA. The document related to the tax in question can usually be found on the website and people should refer to it for deciding if a mistake has been made by the CRA before they actually appeal.
Documentation has to be obtained if it is clear that the CRA has made a mistake in the tax assessment. Depending on the type of tax that has been improperly implemented, documents of taxes paid, proof of assets and wage slips may need to be provided in a CRA tax appeal procedure. Before the submission of tax appeal documentation, it is essential to have all these records in proper order. In case of an appeal, the tax collection is typically put on hold until the dispute is resolved and the process of appeal is complete. If the appeal is not successful, the taxpayer may have to deal with accumulated interests during the appeal period.?Thus, they should be prepared for it.
The application of?CRA tax appeal
CRA tax appeal can be made for wrongful assessment of income taxes, against tax audits or against penalties and interest as well. If the appeal is successful, penalties and interest are reduced usually, but it is very rare for an audit to be completely overturned. It is important to be prepared properly because it is the goal of the appeals office to keep cases outside the tax court. In order to win a CRA tax appeal, the taxpayer should have enough evidence to show that they can actually win if they go further to tax court.
CRA tax appeal can be a complex process that involves specialized knowledge of all the deadlines and all the needed forms and documentation. Call Tax SOS for a free consultation for your tax appeal case 1-877-982-9767.