A Revenue Canada dispute is any disagreement that you have with the Canada Revenue Agency. These disputes can be about anything on your tax returns, such as credits, deductions, and income. Additionally, disputes can be about how to classify income and whether it should be counted as business income, or capital gains. There are many different types of Revenue Canada disputes, and here at Rosen Kirshen Tax Law, we can help with any dispute you have!
Revenue Canada Dispute – Notice of Assessment
Revenue Canada disputes usually arise upon receipt of a Notice of Assessment. Notices of Assessment notify taxpayers of the result of their tax filings and also indicate a refund or amount owing. Amounts reported in these Notices may differ from amounts reported in the taxpayer’s tax return which creates a situation where a taxpayer needs to dispute the Notice of Assessment.
Taxpayers have a right to dispute CRA assessments, and may do so by filing a notice of objection or loss determination. If you need more information before disputing a Revenue Canada assessment, there are several telephone numbers to contact depending on the nature of the inquiry. Please note that there is a deadline for a Revenue Canada dispute. Taxpayers may file a formal Notice of Objection within 90 days of receiving a Notice of Assessment. If 90 days have already passed, taxpayers may apply to the CRA for an extension of time to file their Notice of Objection. This application must outline reasons for why the Notice of Objection was not filed within the usual time limit. The time limit for this extension is one year after the 90 days has run out.
Revenue Canada Dispute – Appeals Division
After filing a Notice of Objection within the stipulated time period, the taxpayer will be contacted by the Appeals division of the Canada Revenue Agency. Typically, you will have an opportunity to present your argument to the appeals division before they respond. Once they have responded, you get one last chance to prove your point before a final decision is made. The final decision will either vacate, confirm, or further reassess the taxpayer’s Notice of Assessment. A vacation means that the CRA has entirely abandoned the Notice of Assessment in dispute and agree to go back to the taxpayer’s original position. A confirmation means that the CRA upholds the Notice of Assessment it issued, and a further reassessment means that the CRA has adjusted the Notice of Assessment in whole or in part.
Revenue Canada Dispute – Tax Court
If you still disagree with Revenue Canada after the Notice of Objection, Taxpayers may file a Notice of Appeal to Tax Court if they wish to further their Revenue Canada dispute. Appeals are heard at the Tax Court of Canada, which is an independent court of law that regularly conducts hearings in major centres across Canada.
The taxpayer may choose to have the appeal heard under either an informal procedure or general procedure. Smaller amounts are typically in dispute under the informal procedure, and there may not be strict adherence to all technical rules of evidence. Without choosing to hear the appeal under informal procedure, the appeal will be heard under general procedure. Under the general procedure, individuals may be self-represented and corporations must be represented by a lawyer.
Revenue Canada Dispute – Federal Court of Appeal and the Supreme Court of Canada
After the Tax Court renders its judgment, taxpayers may further appeal to the Federal Court of Appeal. These appeals are looked at based on whether there were errors in the original Tax Court hearing, which led to an incorrect result. If the taxpayer’s dispute involves issues of national significance, the taxpayer may apply for, and be granted, leave to further appeal to the Supreme Court of Canada. All judgments rendered by the Supreme Court of Canada are final.
If you are involved in a Revenue Canada dispute, or you disagree with the results of a Notice of Assessment you have received, call us today! We handle Revenue Canada disputes from audit all the way through the Federal Court of appeal. Make sure your Revenue Canada dispute is handled by a professional, we’re here to help!
This article provides information of a general nature only. It does not provide legal advice nor can it or should it be relied upon. All tax situations are specific to their facts and will differ from the situations in this article. If you have specific legal questions you should consult a lawyer.