What are you going to do when the CRA issues an income tax or General Sales Tax Notice of Assessment or Reassessment and you feel that the Agency is in error concerning the amount of taxes you have to pay? You will have to respond by filing the CRA Notice of Objection.
Your initial step will be to ensure that you comprehend the rules about the Income Tax Act and how they apply specifically to your tax issues. Even though the rules may seem tough, they have to be applied in the correct perspective. If the rules are clear and they have been established, you may have no other option but to adhere to the amount you have to pay despite your dislike of paying those extra taxes.
On no account, you should hesitate about getting professional guidance in a situation like this. The time spent with an specialized tax expert will be worth your while in preparing yourself for the CRA Notice of Objection. You will also be in a better position to understand whether the Notice of Assessment is clear under application of the rules or if you stand a realistic chance when you object or appeal against that notice from the CRA.
The next step that you can take in collaboration with your tax counselor is to contact the CRA and request an adjustment. This could be done by filing a CRA Notice of Objection through CRA Form T400A. This form is for income tax objections. The form has to be filed before the deadline expires. The deadline provided is ninety days from the time you receive the Notice of Assessment from the CRA.
The Personal Income Tax Act has made a provision for a formal process of objection for people who are not in agreement with the Notice of Assessment sent by the CRA. The process of formal CRA Notice of Objection starts with the filing of that objection. There is an impartial review by the Appeals Office of the CRA. Matters can sometimes lead to the Federal Court or the Supreme Court of Canada.
The CRA Notice of Objection has to contain a set of reasons for the objection and must provide all relevant facts in detail to the CRA to back up the disagreement with the Notice of Assessment. All documents like invoices or stubs or letters have to support the objection and should be submitted to the CRA. A copy of the disputed Notice of Assessment has to accompany the CRA Notice of Objection.
If you want to object to more than a single assessment or determination, a separate CRA Notice of Objection has to be filed for each of the disputed assessments. If the facts or supportive documents are similar for more than one assessment, it could be indicated on each CRA Notice of Objection and one common statement of supporting facts has to be submitted.