Revenue Canada and you

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Your Finances with Stephen Maltby

For most people in the mid to high tax bracket, the income tax remitted to support the federal and provincial governments’ spending with our dollars is our highest living expense.

You should be aware of appeal process as for many  it represents 30 to 50 per cent of your gross income earned. Nova Scotia is one of the highest taxed provinces in Canada.

If you think the Receiver General has misinterpreted the facts or applied the law incorrectly, you have the right to object to income tax assessments and reassessments.

As well, you have the right to object to determinations and re-determinations such as the goods and services tax/harmonized sales tax (GST/HST) credit, the Canada child tax benefit, and the disability tax credit.

The first step is filing a notice of objection with Revenue Canada. The time limit for filing an objection is 90 days from the date on the notice. You can choose to file your objection by using one of these options:

 - Online submission  from the CRA Web site

 - Writing to the Chief of Appeals

 - Using Form T400A and filing a formal notice of objection.

You will need to  explain why you disagree and include all relevant facts and documents.

Time Extension – Notice of Objection

You can apply for an extension to file your objection by writing to the Chief of Appeals at your tax services office or tax centre. Explain why you cannot or did not file your objection on time.

Apply as soon as possible, but the application must be made within one year after the expiration of the time limit to file an objection.

Filing an appeal to the courts

If you disagree with the CRA's decision resulting from an objection, you can appeal your assessment or determination to the Tax Court of Canada, either under the Informal Procedure or the General Procedure. The time limit for filing an appeal is 90 days from the date on the notice.  . You can appeal the Tax Court's decision to the Federal Court of Appeal, and a judgment of the Federal Court of Appeal .You  can  further challenge the decision  before the Supreme Court as well.

You can apply for an extension to file your appeal by making an application to the Tax Court of Canada. Explain why you cannot or did not file your appeal on time.

Apply as soon as possible, but the application must be made within one year after the expiration of the time limit to file an appeal.

In most cases, you do not have to pay income tax amounts that are in dispute until the CRA has completed its formal review or, if you have filed an appeal, until the Tax Court of Canada issues its decision or you withdraw your appeal.

It is important to note that interest charges apply during any period that an amount in dispute is not paid or refunded.

 

Stephen Maltby is an Investment Adviser and Chartered Accountant with CIBC Wood Gundy. He has been in the financial services industry for more then 30 years and has held various accounting, investment and management positions with several accounting and investment firms over the years. He is in addition to his Advisor role a First Vice-President and Executive Director Atlantic Canada, CIBC Wood Gundy.

 

Organizations: CRA, Tax Court of Canada, GST/HST Revenue Canada CIBC Wood Gundy Federal Court of Appeal Supreme Court

Geographic location: Canada, Nova Scotia

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