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.

Summary

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.

The CRA or the Canadian Revenue Agency collects taxes from the citizens of Canada. Usually, individual, organizations or any businesses pay the amount of taxes calculated by the CRA. In case, the Canada Revenue Agency (CRA) sends a Notice of Assessment, and if you do not agree with CRA assessment or financial interpretation, then you can make CRA tax appeal expressing objection to the estimation or appeal for reassessment.

Filing CRA Tax Appeal needs some knowledge

Many tax payers do not know some of the relevant information about the appeal, such as:

How to make an objection to the decision of CRA.

When to file the CRA tax appeal

What should be put forward to increase the possibility of winning?

What is the procedure of filing a tax appeal?

Most of the taxpayers just accept the decision of the CRA only because of the ignorance of the above facts. Consequently, they pay the demanded tax with the Agency. ?With the objective of winning a CRA tax appeal, the taxpayer must present evidence as much as necessary to prove their possibilities of going further to the tax court.

How to Handle a CRA Tax Appeal

Canadian taxpayers have several options of tax appeal, such as charges of interest, liens, levies, and even the penalties. Accordingly, people may represent the cases optionally through different processes of appeal.

Other people that may help you out in the processing of CRA tax appeal are the tax attorney and tax accountants who are the certified tax professionals to deal with CRA tax appeal.

Obtaining the necessary document supporting your objection of tax assessment is obligatory if you want to make CRA tax appeal. This suggests that, you are to point out the mistake of the CRA in the assessment of tax through right documentation.

In case of improper assessment of taxes, you have to submit the document?depending on the payment of taxes such as?Papers of all the paid taxes,?Proof of assets, Income?slips, etc.

Before you submit the documents, you must be well convinced that all the records are arranged in the right order. ?In case of CRA tax appeal, the collection of tax is typically put on hold until the dispute is resolved and the process of appeal is complete. If the tax appeal becomes unsuccessful, the taxpayer might have to enter for dealing with the mounted up interests throughout the period of appeal.?Therefore, every person of CRA tax appeal should always be prepared for the worst.

How to draft notice of objection for the CRA tax appeal

The drafting of objection notice is very important for submitting a tax appeal with Canada Revenue Agency. ?As it sets your case in motion, it is your responsibility to establish the errors of the Agency. You must submit enough documentary evidence to prove that CRA?tax appeal has been made on the ground of flawed assessment of tax under CRA Income Tax Act. In support of your strong objection, it would be quicker and easier for you to convince the CRA agents to reconsider their assessment.

Never delay to file ?CRA?tax appeal. Do it within 90 days of the Notice. Filing the tax appeal?in time will definitely prevent you from facing the further risk of paying erroneous tax amount.

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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.