Filing a Notice of Objection: How to Dispute a CRA Assessment – A Complete Guide by a Montreal CPA Firm Near You

Introduction

Receiving a Notice of Assessment or Notice of Reassessment from the Canada Revenue Agency (CRA) that you disagree with can be stressful and overwhelming. Whether CRA denied expenses, added unreported income, assessed penalties, or adjusted your GST/HST filings, you have the legal right to dispute the decision. The first step in this process is filing a Notice of Objection—a formal document that triggers an independent review by CRA’s Appeals Division. This guide explains how to file a Notice of Objection correctly, what deadlines apply, what evidence you need, and how to maximize your chances of success.

Legal and Regulatory Framework

The objection process is governed by the Income Tax Act, Excise Tax Act, and Tax Administration Act (Quebec). Under the Income Tax Act, taxpayers have 90 days from the date on the Notice of Assessment/Reassessment to file a Notice of Objection. Corporations, GST/HST registrants, sole proprietors, and individuals all use this process. CRA’s Appeals Division is legally required to review objections independently from the auditor who issued the assessment. Missing the deadline may require an extension request, which must be justified and approved by CRA or the Tax Court of Canada.

Key Court Decisions

In Leahy v. Canada, the court confirmed that objections filed after the deadline require strong justification to be accepted. In Hickman Motors v. Canada, the Supreme Court emphasized taxpayers’ rights to procedural fairness during CRA disputes. In Brooks v. Canada, unrealistic assessments were overturned when the taxpayer provided strong documentary evidence. These cases highlight the importance of timelines, proper filing, and strong evidence in objections.

When You Should File a Notice of Objection

You should file an objection whenever you believe CRA’s assessment is incorrect. Common reasons include: denied business expenses, reassessed income you already reported, disallowed input tax credits (ITCs), GST/HST discrepancies, shareholder loan assessments, incorrect real estate capital/business income treatment, misapplied penalties, interest calculations errors, repeated failure-to-report penalties, and incorrect source deductions in payroll audits. Filing an objection formally pauses most collection actions until the dispute is resolved.

How to File a Notice of Objection

A Notice of Objection can be filed using: CRA My Account, My Business Account, Represent a Client, or Form T400A (for individuals and businesses). GST/HST objections are filed using Form GST159. Quebec objections are filed separately with Revenu Québec using form MR-93.1.1.
Your objection must include: the assessment reference number, the tax years involved, detailed reasons for disputing the assessment, supporting facts and legislation, and a request for an independent review. Incomplete or vague objections may delay processing or weaken your position.

Deadlines and Extensions

You have 90 days to file an objection. If you miss the deadline, you may apply for an extension within one year + 90 days of the original assessment date. You must demonstrate: (1) you had a valid reason for missing the deadline, (2) you acted as soon as circumstances allowed, and (3) your objection has merit. CRA and the Tax Court strictly enforce these deadlines.

What Happens After You File

CRA Appeals assigns your file to an appeals officer who reviews your documentation, tax law, audit report, and arguments. They may request additional documentation, clarify issues by phone, propose a settlement, or issue a new Notice of Assessment. Many disputes are resolved at this stage without going to Tax Court. If unresolved, you may appeal to the Tax Court of Canada.

Evidence You Should Provide

To strengthen your objection, submit: receipts, bank statements, contracts, invoices, mileage logs, proof of payment, lease agreements, payroll records, GST/HST returns, real estate documents, and legal agreements. Clearly organized evidence increases credibility and helps the appeals officer reassess objectively.

Common Mistakes Taxpayers Make

Common errors include: filing objections without evidence, missing deadlines, responding emotionally instead of factually, relying on verbal agreements without documentation, failing to address CRA’s specific findings, and submitting incomplete information. These mistakes reduce the likelihood of success.

How Long an Objection Takes

Depending on complexity, objections may take 3 months to 2+ years. Corporate files, real estate issues, and GST/HST disputes often take longer. CRA prioritizes hardship cases and requests motivated by financial urgency.

Mackisen Strategy

At Mackisen CPA Montreal, we prepare strong, legally grounded Notices of Objection. We analyze CRA’s audit report, build evidence packages, cite relevant tax legislation and jurisprudence, craft persuasive written arguments, negotiate with appeals officers, and defend your rights throughout the dispute process. Our objections are structured to maximize the chance of reversal or settlement in your favour.

Real Client Experience

A Montreal business owner had $85,000 in GST/HST denied—our objection restored 100% of ITCs. A real estate investor successfully fought CRA’s attempt to classify capital gains as business income. A self-employed consultant avoided a gross negligence penalty after we provided evidence of reasonable care. A corporation reversed payroll source deduction assessments through our detailed objection.

Common Questions

Does filing an objection stop collections? Usually yes—except for GST/HST, payroll, and source deductions. Can I file without a CPA? Yes, but success rates are higher with professional representation. Can CRA reject my objection? Yes—but you can appeal to Tax Court.

Why Mackisen

With more than 35 years of combined CPA experience, Mackisen CPA Montreal prepares strong, strategic Notices of Objection grounded in legislation, jurisprudence, and detailed evidence. We protect your rights, challenge incorrect assessments, and deliver results.