Filing a Notice of Objection – A Complete Guide by a Montreal CPA Firm Near You

Introduction

If you disagree with a CRA Notice of Reassessment, your first and most important legal remedy is to file a Notice of Objection. This is not optional—if you do not file a valid objection within the legal deadline, you lose your right to challenge CRA’s decision and may become permanently liable for the assessed amount. A Notice of Objection transfers your file to CRA Appeals, where an independent officer reviews your case and may change, reduce, or reverse the reassessment. Understanding objection deadlines, required documents, and the appeals process is essential for protecting your tax rights.

Legal and Regulatory Framework

Objections are governed by section 165 of the Income Tax Act. You must file your objection within 90 days from the date of your Notice of Assessment or Reassessment. If you miss the deadline, you may request an extension, but you must apply within one year of the original deadline and provide valid reasons for the delay. Filing an objection pauses CRA collections on the disputed amount, but not on undisputed amounts. CRA Appeals must review your objection impartially and issue a Notice of Confirmation, Notice of Reassessment, or Notice of Vacation depending on their findings.

Key Court Decisions

In ConocoPhillips Canada Resources Corp. v. Canada, the court emphasized strict adherence to objection deadlines—missing them can permanently extinguish appeal rights. In McMillan v. Canada, the court confirmed that objections must clearly state reasons and relevant facts to be considered valid. In Cape v. The Queen, CRA’s partial acceptance of an objection was upheld when documentation supported part, but not all, of the taxpayer’s claims. In Riverfront Medical v. Canada, the court reinforced that an objection is a legal process requiring clear evidence, not vague explanations or unsupported claims.

Why CRA Objections Matter

A Notice of Objection is the only way to challenge reassessments without going directly to the Tax Court of Canada. Objections allow for: independent internal review, reconsideration of documentation, correction of CRA errors, reversal of adjustments, reduction of penalties, and protection from CRA collections during the review. Filing an objection also allows you to correct misunderstandings or explain complex financial situations that CRA’s initial auditor may not have fully considered.

How to File a Notice of Objection

1. Confirm the Deadline

You have 90 days from the date on the reassessment. For late filings, you have one additional year to request an extension, but only if you provide a valid reason, such as illness or circumstances beyond your control.

2. Prepare Your Objection

Your objection must include: your name and SIN or business number, the tax year in question, the amount or issue you disagree with, your detailed reasons for disagreeing, supporting documents, and your signature or your representative’s signature. You may file online through CRA My Account or My Business Account, or by submitting Form T400A.

3. Gather Documentation

Collect all documents supporting your position, including receipts, invoices, contracts, bank statements, bookkeeping records, medical expenses, donation slips, mileage logs, rental or business records, investment statements, GST/HST returns, or correspondence with CRA. Strong evidence significantly increases your chances of a successful objection.

4. Submit to CRA Appeals

Once CRA Appeals receives your objection, an appeals officer independently reviews the file. This is not the same person who issued the original reassessment. Appeals officers may request additional documents or clarification. Respond promptly to all requests to avoid delays.

5. Await the Appeals Decision

CRA Appeals may issue one of the following: a Notice of Confirmation (CRA maintains the reassessment), a Notice of Reassessment (CRA changes the reassessment), or a Notice of Vacation (CRA cancels the reassessment entirely). If you disagree with Appeals’ decision, your next step is the Tax Court of Canada.

Mackisen Strategy

At Mackisen CPA Montreal, we prepare strong, evidence-based Notices of Objection that maximize your chance of success. Our process includes reviewing the reassessment line-by-line, identifying CRA errors, reconstructing missing documentation, drafting clear objection arguments, filing the objection before deadlines, communicating with CRA Appeals on your behalf, compiling legal-grade evidence packages, and negotiating reductions or reversals of adjustments. Our strategic approach significantly increases the likelihood of a favorable outcome.

Real Client Experience

A consultant was reassessed for unreported income based on a T4A that belonged to another taxpayer. We filed a Notice of Objection with documentation proving the error; the reassessment was fully cancelled. A landlord had rental expenses denied due to missing receipts. We reconstructed the bookkeeping records and successfully restored most deductions. A crypto investor was reassessed for capital gains based on incomplete T5008 data. We provided adjusted cost base analysis and CRA vacated the reassessment. A business owner incorrectly reported GST/HST; we filed an objection and secured a revised assessment with reduced penalties.

Common Questions

What happens if I miss the 90-day window? You must apply for an extension within one year, but approval is not guaranteed. Does filing an objection stop CRA from collecting? Collections stop on the disputed amount only. Do I need a CPA? Strongly recommended—CRA Appeals is a legal, evidence-based process. How long does it take? Objections can take months to over a year depending on complexity.

Why Mackisen

With over 35 years of combined CPA experience, Mackisen CPA Montreal protects taxpayers by preparing strong objections, defending tax positions with evidence, and negotiating fair outcomes. Whether the issue involves income, expenses, GST/HST, rental properties, crypto, business income, or penalties, we ensure precision, compliance, and powerful representation.