An appeal, also known as an objection, is the right to object to a Notice of Reassessment (NOR) sent to a taxpayer or registrant from the CRA. The NOR is the result of changes (adjustments) the CRA made to a previously filed return. These adjustments most commonly result from a review, an audit, or mismatch information from filed returns to information the CRA has on file. Appeals can be made under both the Income Tax Act, and Excise Tax Act.

 

An appeal filed with the CRA is considered an "administrative review", meaning that an internal CRA agent processes the appeal. The Appeals Office (AO) operates as a unbiased, impartial reviewer who is responsible for ensuring that the legislation was correctly applied to the issue under review. 

What is the deadline required to file an appeal?

It is imperative that an appeal is filed as soon as possible. An appeal must be filed within 90 days of date on the NOR. Appeals filed within this timeframe, provided they are appealing a valid issue, cannot be declined.

 

It is possible to file an appeal after the 90 days have elapsed. An appeal can filed up to one year and 90 days late; however, the CRA has the authority to decline extensions at their discretion and cannot be relied on.

Stages of an appeal.

Appeals follow a process which can take 6-18 months to resolve. The steps can be summarized as follows:

 

• The Notice of Objection (NOO) is filed with the agency,
• The agency sends an acknowledgement letter,
• The NOO is screened for complexity, and is added to the nationwide inventory,
• The NOO is assigned to an AO:
  • The AO reviews the file and performs and initial contact within 5 business days of assignment, and requests additional information as required,    
  • An initial contact letter is sent which outlines the objection and requests additional information.
• Information as requested is submitted to the AO for review,
• AO reviews the information and either
  • Additional information is requested, or
  • The AO informs the taxpayer/registrant/representative of the decision
• When a decision is reached one of the following will occur:
  • The appeal is allowed in full:
    • A letter regarding the decision, as well as a new NOR will be issued that reverses the NOR under objection.
  • The appeal is allowed in part/is disallowed (confirmed):
    • A proposal letter will be sent detailing the changes that will be made,
      • The taxpayer can agree to the changes, or disagree and send additional representations to dispute the decision on file.
    • After a review of additional representations, or acceptance of changes, a final letter will be sent.
      • If the objection is allowed in part, a new NOR will be issued.
      • If the objection is disallowed, no NOR will be issued.

 

An appeal which is confirmed or allowed in part can be appealed additionally to the Tax Court of Canada.

Outcomes of an Appeal

As mentioned previously, there are three outcomes for an appeal:

1. Allowed in Full
   1. An appeal allowed in full means all issues under objection will be reversed.
   2. This is the best outcome for an appeal.
2. Allowed in Part
   1. An appeal allowed in part means that some of the issues under objection will be reversed.
   2. For example, Input Tax Credits (ITCs) of $30,000 were decreased on a NOR. After the appeal review, $15,000 of the ITCs were allowed. As ITCs of $15,000 of $30,000 were allowed, the appeal is allowed in part. 
   3. This is a mixed outcome for an appeal, generally resulting from AOs requests not being fully satisfied.
3. Disallowed (confirmed)
   1. An appeal that is disallowed means that none of the issues under objection will be allowed, and no changes will be made. 
   2. This is the worst outcome for an appeal, generally resulting from not satisfying the AOs requests.

What we can do for you.

The appeals process is a lengthy, and potentially complicated process which we are here to support you through. While we cannot guarentee a favoruable outcome, we will provide you with the tools to increase your chances of a successful appeal. Our staff includes a former GST/HST Appeals Office who understands the appeals process, and the information needed. We offer the following services for appeals filed both under the Income Tax Act, and the Excise Tax Act:

 

• General guidence on the process, including how to file a NOO, possible outcomes, and how to respond to the CRA.
• Full representation during the appeals process:
  • Intial consultation,
  • Anaylsis of likely outcomes,
  • Filing the NOO on your behalf,
  • Liasing between you and the CRA,
  • Keeping you informed throughout the process,
  • Submitting/reviewing documents to enhance the chances of a successful appeal,
  • Other appeals related work that may be required.

 

We strive to ensure that you have a smooth appeals experience, and ensure you have the tools you need to be successful in your appeal. Please complete the form on this page to engage our services. 

Pricing

Appeals can vary from simple issues such as reveiw of a single line on an Income Tax Return, to more complex issues such as shareholder benefit assessments. As such, the following pricing will be established during our initial consulation (all pricing is additionally subject to HST):

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Fee Examples:

 

1. The CRA issued a NOR adjusting line 8523 on schedule T2125 of a T1 return to $0 from $10,000. This review is likely simple It is expected that the appeal will take 3 hours to complete. As such, the fee would be $125.00 plus HST.

2. The CRA issued a NOR adjusting ITCs from a GST34 return to $0 from $75,000. This review is complex as there are issues surrounding place of supply rules, and poor documentation. It is expected that the appeal will take 15 hours to complete. As such, the fee would be $700.00 plus HST.

 

While it is difficult to estimate the time it will take to complete an appeal we expect a simple appeal to take 2-5 hours, and a complex appeal to take 10+ hours. The more information provided to us regarding the appeal, the better we can estimate the time required. For complex reviews, we may require a deposit of 50% of the estimated time to complete the appeal which, will be applied to the final invoice.