Chapter 7: Objections and appeals

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What to do if you disagree with a tax assessment

If you do not understand or you disagree with an assessment, call 1-800-959-8281. You can also write to the tax centre that dealt with your return. We resolve many problems with assessments in this way. If you employ the services of a tax professional, you may wish to consult with that person.

The objection process

Under income tax and GST/HST legislation, you can file an objection if you disagree with your Notice of Assessment or Notice of Reassessment and you think that the law has been applied incorrectly.

Income tax - You can do this by using the "Register my formal dispute" option at our My Account page or by sending Form T400A, Objection - Income Tax Act, or a signed letter addressed to the Chief of Appeals, at your local Appeals Intake Centre. Residents of the provinces west of Ontario and the 3 territories may send the objection to the following address:

Western Intake Centre
Burnaby/Fraser TSO
9737 King George Highway
PO Box 9070 Station Main
Surrey BC V3T 5W6

Residents of Ontario and provinces east may send the objection to the following address:

Sudbury Intake Centre
Sudbury Tax Services Office
Appeals Division
1050 Notre Dame Avenue
Sudbury ON P3A 5C1

For more information, visit our Resolving disputes page.

If you are an individual (other than a trust) or if you are filing for a testamentary trust, you must file your objection by the later of:

• one year after the due date of the return; or
• 90 days after the date we mailed your Notice of Assessment or Notice of Reassessment.

In every other case, you have to file your objection within 90 days of the day we mailed the Notice of Assessment or Notice of Reassessment.

GST/HST - You must use Form GST159, Notice of Objection (GST/HST),to file your objection. Send it to the Chief of Appeals at your local Appeals Intake Centre within 90 days of the day we mail the Notice of Assessment or Notice of Reassessment.

When we receive your objection, the Appeals Division will conduct an independent impartial review of the assessment. If the Chief of Appeals agrees with you in whole or in part, we will adjust your return and send you a Notice of Reassessment. However, if the Chief of Appeals disagrees, we will send you a Notice of Confirmation confirming that the assessment was correct.

Excise Act, 2001 - You must use Form E680, Notice of Objection - Excise Act, 2001, to file your objection within 90 days of the day we mailed the Notice of Assessment or Notice of Reassessment. Send your objection to the following address:

Assistant Commissioner, Appeals Branch
22nd Floor
25 Nicholas Street
Ottawa ON  K1A 0L5

CPP/EI - If you think we have misinterpreted the facts or applied the law incorrectly, you have the right to appeal assessments and rulings related to the CPP and EI. To file an appeal to the Minister, you can:

• use My Business Account;
• mail your appeal directly to the CPP/EI Appeals office located in your region or to any tax services office;
• if you want to appeal a ruling of CPP and/or EI, you can use Form CPT100, Appeal of a Ruling under the Canada Pension Plan and/or Employment Insurance Act; or
• if you want to appeal an assessment of CPP and/or EI, you can use Form CPT101, Appeal of an Assessment under the Canada Pension Plan and/or Employment Insurance Act.

In all cases, you can choose to send a letter detailing your request, signed by the appellant or by an authorized officer of the corporation.

Tax Court of Canada

If you still do not agree, you can appeal our decision to the Tax Court of Canada. You have 90 days from the date we mail our decision on your objection (a Notice of Reassessment or a Notice of Confirmation). You can also file an appeal to the Tax Court of Canada if we do not notify you of our decision within 90 days of the date you filed your income tax objection, or within 180 days of the date you filed a GST/HST or excise duty objection.

The Tax Court of Canada deals with appeals under the informal or general procedure.

Informal procedure

This procedure is designed to resolve less complex cases involving smaller amounts of taxes, interest, and penalties. You have to indicate in your appeal that you want the Court to hear your case under this procedure.

Through a series of strict time frames built into this procedure, decisions should be made within about six months of the date you filed your appeal. Decisions are final and not subject to appeal. However, they are subject to judicial review by the Federal Court of Appeal.

General procedure

If you do not elect to have your appeal heard under the informal procedure, it will be heard under the general procedure. This is a more formal process that includes:

• filing a written notice of appeal;
• paying a filing fee;
• restricting representation in court to either you or your lawyer;
• awarding costs to either party (the plaintiff or the defendant).

The Federal Court of Appeal reviews appeals by either party of decisions made under this procedure.

Federal Court of Appeal

If either you or the Minister of National Revenue want to appeal a decision the Tax Court of Canada made under the general procedure, the appeal must be filed with the Federal Court of Appeal no later than 30 days after the decision.

Either party can request that the Federal Court of Appeal review a decision the Tax Court of Canada made under the informal procedure. The Federal Court review will be restricted to questions of law and jurisdiction. An application for this type of review has to be filed no later than 30 days after the decision of the Tax Court of Canada.

Supreme Court of Canada

You can appeal a judgement of the Federal Court of Appeal to the Supreme Court of Canada. However, you first have to get the Supreme Court's permission.

Collection of disputed amounts

If you object to or appeal an income tax assessment, we usually postpone collection action on amounts in dispute until 90 days after we mail our decision to you. We will not postpone collection action on some disputed amounts, such as employees' income tax that you were required to withhold and remit.

You do not have to pay the tax you are disputing while you are waiting for the CRA or a court to settle your appeal. However, these taxes are still subject to the usual interest charges. Before you appeal a lower court’s decision to a higher court, you have to pay the tax in dispute or post acceptable security.

If you lose your appeal to the Tax Court of Canada, we will resume collection action even if you appeal the Court's decision. However, we will accept security for payment while your appeal is outstanding.

If you object to a GST/HST assessment, collection action may be postponed. However, you may post acceptable security while we are reviewing your objection.

Your rights, entitlements, and obligations

The CRA operates on the fundamental belief that its taxpayers are more likely to comply with the law if they are treated fairly and have the information, advice, and other services they need to meet their obligations. These obligations may include filing required returns, paying taxes, providing information, and properly declaring imported or exported goods.

While we want to make sure you are aware of your obligations, we also want to make sure that you understand and can exercise your rights. For more information on Taxpayer Relief Provisions and taxpayer rights, visit our Fairness and Taxpayer Bill of Rights page or see Guide RC17, Taxpayer Bill of Rights Guide: Understanding Your Rights as a Taxpayer.

For information on the CRA’s Commitment to Small Business, visit our About the Taxpayer Bill of Rights page.

Taxpayer Relief Provisions

We can waive or cancel all or part of the interest or penalties when they result from circumstances that are beyond your control. Such circumstances could include a serious illness, natural disasters, or a postal service strike that prevents you from filing an income tax or GST/HST return, or making a payment by the required deadline.

Provisions in the Income Tax Act and Excise Tax Act (for GST/HST) help us administer the legislation fairly. These provisions apply to individuals, testamentary trusts, small business owners, and corporations. All requests for relief should be submitted in writing.

For requests made on or after January 1, 2005 under the taxpayer relief provisions of the Income Tax Act, the Minister may grant relief for any tax year (or fiscal period in the case of a partnership) that ended within 10 years before the calendar year in which the taxpayer’s request was made. For more information, see Information Circular IC-07-1, Taxpayer Relief Provisions.

For requests made on or after April 1, 2007 under the taxpayer relief provisions of the Excise Tax Act, the Minister may grant relief for any reporting period that ended within 10 years before the calendar year in which the taxpayer’s request was made.

Taxpayers can address requests involving the taxpayer relief provisions to any CRA office. Form RC4288, Request for Taxpayer Relief, can be used to make a request. A copy of this form is available on our page or by calling 1-800-959-2221.

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