The Canadian income tax system is a self-assessment regime. Taxpayers assess their tax liability by filing a return with the CRA by the required filing deadline. A taxpayer who disagrees with CRA’s assessment of a particular return may appeal the assessment. The appeal process starts when a taxpayer formally objects to the CRA assessment.
Here are some commonly asked questions and answers.
1. If there is a mistake or undue delay, what are my options?
The first step is to give the CRA the opportunity to resolve your complaint. The CRA has existing mechanisms that you can use to resolve service-related complaints, which are outlined in the pamphlet RC4420, Information on CRA – Service Complaints If you are not satisfied with the outcome, you can approach The Taxpayers’ Ombudsman.
2. What types of complaints will the Taxpayers’ Ombudsman review?
The Taxpayers’ Ombudsman can review service-related complaints about the way taxpayers have been treated by the CRA. For example, the Taxpayers’ Ombudsman can review the following service-related complaints:
mistakes;
undue delays;
poor or misleading information; or
staff behaviour.
What type of outcome shall I expect from the Taxpayers’ Ombudsman?
At the end of their review, the Taxpayers’ Ombudsman will send you and the CRA the outcome of the review with recommendations, if any. As part of their recommendations to the CRA, they may suggest that the CRA:
give further reasons for a decision;
correct a misunderstanding, omission or oversight;
offer an apology;
change a policy or procedure;
make changes to systems or applications;
review its service standards; or
consider further staff training.
I have been charged interest or penalties for late tax payments…my options?
If you have been charged interest or penalties for late tax payments caused by reasons out of your control you can apply to have them waived under Revenue Canada’s “Fairness” doctrine.
I want to make changes to previously filed personal tax returns…
To make changes to previously filed personal tax returns, individuals should not file an amended tax return. Canada Revenue Agency (CRA) prefers that individual taxpayers who wish make changes to returns, use form T1-ADJ (Adjustment Request), available at local tax services offices or on the CRA Web site.
Deadline for filing taxes…..?
April 30 is the deadline for individual taxpayers (except for those who are self employed) to file their T1 personal Canadian income tax returns. The return should be filed even if there is an unpaid balance of taxes owing in order to avoid the late filing penalty. June 15 is the deadline to file Canadian personal income tax returns for individuals with self employment income.
If I am unable to pay the balance owing, can I defer filing?
No. The deadline for filing personal Canadian income tax returns is April 30. If you have a balance owing and fail to file, you will be charged a late filing penalty; so you should file your return by the due date even if you are unable to pay the balance owing.
Some slips or receipts are missing. Can I wait beyond the deadline?
No. Even if you’re missing slips or receipts ensure that you file your tax return by the filing deadline. Otherwise you will be assessed a late filing penalty.
What are the penalties for gross negligence in reporting income on your Canadian income tax return?
If you are grossly negligent in failing to report income on your Canadian income tax return you can be assessed a penalty equal to 50% of the tax owing.
What is Net Worth Assessment?
If you fail to keep proper books and records CRA may do a net worth assessment, which looks at the increase in your assets over time and assesses income tax on that increase.
I missed the deadline to file a Notice of Objection. ..My options?
If you have missed the deadline to file a Notice of Objection on your Notice of assessment, you can apply for an extension of time. However there are strict time limits for the application and there must have been a valid reason to have missed the deadline.
Sree Kannuthurai is helping people to file their tax returns for the last 14 years. His phone: 647 268 2300
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