The process of a CRA tax appeal can be considered if taxpayers believe that the Notice of (re)assessments they receive ar not fair. The best way to go about it when you have to reduce the amount of tax owed by you to the government is by submitting a valid reason for your disagreement with the assessment.
The Notice of Objection is the first step in the process of a CRA tax appeal. A court of law will presume that the assessment sent out by CRA to the taxpayers is correct. In order to appeal, time is of the essence. Action has to be taken in time and through proper channels to ensure that your stand on the amount you have to pay is accepted.
To begin with, you can explain in the Notice of Objection everything that you consider as discrepancies in the Notice of Assessment. All facts have to be set in front of the CRA with full evidence to support your case. The Objection can be filed by means of a simple letter to your concerned tax centre jurisdiction with an indication of the reasons for disagreement with the assessment.
The drafting of the Notice of Objection before the CRA tax appeal is important as it sets up your case. The burden is on you to prove that there is an error on the part of the CRA. There should be sufficient documentary evidence to prove that and valid arguments in the Notice of Objection you draft. The assistance that you can get from seasoned tax consultants will be instrumental. The best kind of objection notices will be those which use a statement of the Income Tax Act of the CRA with evidence to show that the tax assessment has been done on a flawed basis. Once the notice of objection is strong, it may help convince the CRA agents to reverse their position.
Care has to be taken to file a CRA tax appeal within ninety days of the Notice of Assessment. Filing the CRA tax appeal within the deadline will save you from the dangers of the possibility of being forced to pay inaccurate amounts in taxes.
The common arguments that become a base for the CRA tax appeal are deductions or disallowed expenses. Many taxpayers confine themselves to the advice that is given to them by the agents within the CRA. It is wiser to be familiar with the time limits and procedures so that you can file all notices and the CRA tax appeal correctly and responsibly.
Finally, at the end of the appeal, the CRA tax appeal agents will issue letters concerning their decisions about audits as well as objections which have been submitted by the taxpayers. If taxpayers are happy with the results, two parties will settle. If taxpayers are still not not convinced of the result. Then tax court is the next level of appeal which most taxpayers will not proceed due to the time and financial limitation on their parts.
If you are overwhelmed by CRA’s unfair assessment and need to file tax appeal, working with experienced tax appeal specialists will increase your probability of winning. Contact Tax SOS at 1-877-982-9767 for free consultation.