Preparing And Filing Notices Of Objection – Some Tips And Traps

Once the Canada Revenue Agency (CRA) completes an audit of a taxpayer's taxation year, the CRA may change the amount of the income tax liability of the taxpayer and may also assess penalties and interest. Once the Minister of National Revenue (the Minister) issues a Notice of Assessment or Notice of Reassessment (the Notice of Reassessment), the taxpayer can file a Notice of Objection with the CRA Appeals and object to the change to the tax liability as well as to the assessment of interest and penalties.

While preparing a Notice of Objection might appear to be a relatively simple process, there are a number of technical provisions contained in section 165 of the Income Tax Act (Canada) (Act) and in case law of which taxpayers should be aware. Failure to comply with the requirements may deprive the taxpayer of appeal rights.