When taxpayers in Canada have filed their annual income tax returns with the Canada Revenue Agency (CRA), a process is followed should the Notice of Assessment issued by the tax authorities not coincide with the original tax return filed by the taxpayer. The usual route is by filing Form T1-ADJ (T1 Adjustment Request) with the Taxation Centre and successfully resolving the matter.
In some cases, the taxpayer may have to formally object to the Notice of Assessment by filing a Form T400A (Notice of Objection) with the Appeals Division of CRA in order to obtain a resolution. Although an extension to file the Notice of Objection may be successfully obtained in limited cases, the taxpayer should timely file the objection within one year of the normal filing due date of the tax return OR 90 days after the date printed on the Notice of Assessment, whichever is later.
Should neither of these two processes resolve the tax matter at hand, the taxpayer would then proceed by filing an appeal with the Tax Court of Canada. The Tax Court of Canada provides individuals and companies with an opportunity to settle on disagreements with the Federal government on matters arising under the Tax Court of Canada Act.
Should one of parties continue to disagree with the findings at the Tax Court, they may file an appeal with the next level of the judiciary, namely the Federal Court of Appeal. The Federal Court of Appeal would review the decision from the Tax Court. In the vast majority of tax situations, this is normally the final decision. However, in extremely limited situations, an appellant may appeal to the Supreme Court of Canada, which is Canada’s final court of appeal. The decision of the Supreme Court is final.
Debra Moses
dmoses@bdo.ca