Notice of Assessment

Notice of Assessment (NoA) is sent to you after the Canada Revenue Agency (CRA) or Revenu Quebec (RQ) has completed a assessment of your filed tax return.  This document is very important to you, and should be reviewed with your tax return filed.  You only have (90) days to file an Notice of Objection if you want to dispute a Notice of Assessment or Notice of determination.  Failure to file can limit you rights!  

Sections of your CRA notice of assessment (NoA)

The notice will contain the following:

1. The date of the assessment
2. The location of your CRA district office
3. Account summary by line number of the assessed or reassessed tax return
4. Explanation of changes and other important information
5.  The amount Due or refundable or transferred
6. Your RRSP deduction limit for the next year
7. Your notice may also contain your:
   1. Your Home Buyer Plan (HBP) the balance remaining and minimum required payment for next year
   2. Your Lifelong Learning Plan (LLP) the balance remaining and minimum required payment for next year

If you are a resident of Quebec your RQ notice of assessment (NoA)

The Notice will contain the following sections that relates to Quebec only:

1. The date of the assessment 
2. Number of the Notice/Numéro de l’avis 
3. Account summary by line number of the amount declared and assessed
4. Explanation of changes and other important information
5. The amount Due or refundable or transferred

Why are notices of assessment so important

Not only to they provide very important information that the the government has received your tax returns, they provide confirmations that they either have currently have accepted the facts of what you have filed or an explanation of changes that they have made.  If you don’t understand the change it’s the perfect reason to have a Authorized Representative to help you understand the change and you protect your rights.

Not only does the  NOA provide the summary of your tax returns it also starts the clock for first (90) days limit to file a Notice of Objection to any changes that the government has made.  Failure not to file a Notice of Objection can restrict your rights to challenge the changes made in the assessment.    Another good reason to have a Authorized Representative to file the Notice of Objection to make sure your rights are protected.  

 Your tax Notice of Assessment (NoA) may also includes carry forward amounts that you can include on your next year’s tax return, such as unused tuition and education credits and capital losses. Be sure to keep your Notice of Assessment in a safe place to refer to when your returns are prepared next year. 

It’s very common for Banks, foreign governments, and other third parties may request your Notice of Assessment as proof of residence, taxable income, and for other reasons.

Expert Fiscaliste as your  CRA Authorized representative

Expert Fiscaliste as your Authorized representative has many advantages to taxpayers.  As your professional representative to CRA will contact Expert Fiscaliste first to request additional information on your tax returns, and we act as your tax professional reviewing the 30 day information requests and we submit information directly to CRA avoiding delays and your stress.

For more information on Authorized Representative visit our page  Authorized Representative – Expert Fiscaliste (expert-fiscaliste.org)

Expert Fiscaliste as your  Quebec (RQ) Authorized representative

In addition to Expert Fiscaliste being your CRA representative we can also be your Quebec (RQ) authorized representative.  Working for you throughout the year, reviewing correspondence, notice of Assessments, filing adjustments, and file notice of objections .  

For more information on Authorized Representative visit our page  Authorized Representative – Expert Fiscaliste (expert-fiscaliste.org)

What if I haven’t received my CRA Notice of Assessment?  

Your annual CRA tax assessment notice will only be sent to you after the CRA has completed their preliminary review of the T1 tax return you or your representative has filed with the agency.

If you feel you should have received it — but haven’t — contact the CRA or call 1-800-267-6999 or contact your Authorized Representative.

What if there is a Discrepancy on my CRA Notice of Assessment?

Once you receive your Notice of Assessment from CRA, it’s important to compare it against the calculations on your filed T1 or T2 income tax return.

Unfortunately, discrepancies between income tax returns and CRA tax assessments are not uncommon.

If you disagree with CRA’s tax assessment, start by calling your tax preparer or your Authorized Representative writing to the tax centre that processed your return. Some issues can be easily resolved this way.

If this step does not resolve the issue, you have the right to appeal the Notice of Assessment by filing an objection.

How do I Appeal my CRA Notice of Assessment?           

To Appeal or Objection to notice of Assessment, you or your Authorized Representative must file a notice of objection.  Typically, the bases for appeal are a disagreement with the assessment  or a dispute over how the CRA has interpreted the income tax law.

You must file your notice of objection within one year from the filing deadline of the tax return in question, or 90 days of the CRA mailing your Notice of Assessment, whichever is later.  You’ll need to explain why you disagree and include all relevant facts and documents.

If CRA agrees with you, either completely or partially, it will adjust your tax return and send you a revised Notice of Assessment.  Otherwise, you’ll get written notice confirming the original tax assessment.

Professional Fees

Did you know that you can deduct accounting or legal fees you paid to have an objection or appeal prepared against an assessments.  However, the full amount of these deductible fees must first be reduced by any reimbursement.  If you received a reimbursement in the subsequent tax year add them in that year as other income.

What if the CRA Rejects my Appeal?

If you disagree with CRA’s decision on your objection, you can appeal to the Tax Court of Canada.  You can represent yourself at court or have a lawyer represent you.   

If your case is unsuccessful in the Tax Court, you could take it to the Federal Court of Appeal and, ultimately, to the Supreme Court of Canada.

The whole appeal process can be daunting and requires a lot of time and expense if you handle it alone.

If you’re ever audited or challenged on an income tax return call Expert Fiscaliste.

About Expert Fiscaliste

Expert Fiscaliste provides income tax preparation and consulting services to individuals, and businesses in Canada and the US.

If you want to take advantage of our services for your Tax Returns or to be your Authorized Representative Give us a call at 514-954-9031, or visit our Contact Tax