MONTREAL CPA FIRM NEAR YOU: NOTICE OF ASSESSMENT OR REASSESSMENT — WHAT IT MEANS AND HOW TO RESPOND

Understanding CRA & ARQ Assessments

A Notice of Assessment (NOA) or Notice of Reassessment (NORA) confirms the government’s calculation of your tax return. CRA and Revenu Québec may adjust your income, credits, deductions, or taxes payable. Montreal CPAs help clients interpret these notices, verify accuracy, and determine whether corrections or objections are required.

Why Assessments Are Issued

Assessments are issued for many reasons: automated system checks, missing slips, discrepancies between returns and third-party information, or targeted audit projects. Montreal CPAs identify the trigger behind the adjustment to determine whether it is routine, error-based, or the start of a deeper review.

Reading the Assessment Correctly

Assessment notices contain crucial details such as revised amounts, interest charges, penalties, and explanatory codes. Montreal CPAs assist clients in decoding these sections to understand what changed, why it changed, and what needs immediate attention.

Comparing the Assessment to Your Filed Return

The first step after receiving an assessment is comparing CRA’s numbers with your original filings. Montreal CPAs perform line-by-line reconciliation to identify discrepancies, miscalculations, or missing information. This helps determine whether the assessment is correct or should be disputed.

Understanding Penalties & Interest

If an assessment adds taxes owed, it may also include penalties and compound daily interest. Montreal CPAs explain how these amounts are calculated and strategize ways to reduce or eliminate penalties under programs such as fairness relief when appropriate.

Responding to Unexpected Adjustments

Unexpected tax increases can result from incorrect reporting by employers, financial institutions, or CRA’s automated matching system. Montreal CPAs guide clients in gathering supporting documentation, obtaining corrected slips, and preparing a response to challenge inaccurate adjustments.

When the Assessment Is Correct

If the assessment is accurate, Montreal CPAs help clients update their records, adjust financial plans, and make payment arrangements. Even correct assessments may offer opportunities for tax planning to reduce future exposure.

When the Assessment Is Wrong

Incorrect assessments are common, especially when documentation is incomplete or misclassified. Montreal CPAs identify errors, prepare objections, and compile supporting documents to correct the record quickly and professionally.

Filing a Formal Objection

If you disagree with CRA or ARQ’s conclusions, you have the legal right to file a Notice of Objection within the prescribed deadlines. Montreal CPAs draft strong, evidence-based objections that articulate errors clearly and support your position with documentation and legislation.

Understanding Deadlines for Objections

Deadlines for objections are strict: generally 90 days for CRA and ARQ, with possible extensions. Missing these deadlines can eliminate your right to dispute. Montreal CPAs track important dates to ensure clients preserve all legal options.

Supporting Documentation for Objections

Successful objections depend on documentation. Montreal CPAs assist clients in assembling receipts, contracts, calculations, financial statements, or correspondence that support the corrected tax position, reducing the risk of denial.

Communicating with CRA & ARQ During Disputes

Effective communication is essential during an objection. Montreal CPAs handle all communications, ensuring responses remain professional, factual, and aligned with tax law. Controlled communication protects clients from making statements that could weaken their case.

Avoiding Escalation to Collections

If the assessment results in a balance owing, CRA and ARQ may begin collection activity even during an objection. Montreal CPAs intervene to negotiate payment holds, payment plans, or relief under financial hardship policies, preventing unnecessary stress.

Appealing Beyond the Objection Stage

If the objection is denied, clients may escalate to the Tax Court of Canada or the Court of Québec. Montreal CPAs help evaluate the strength of the case, coordinate with tax lawyers, and prepare financial evidence for litigation.

Correcting Future Filings

Assessments often reveal underlying filing issues. Montreal CPAs implement preventive measures—accurate recordkeeping, consistent documentation, and audit-proof filing methods—to reduce future adjustments and ensure compliance.

Understanding Multi-Year Reassessments

If one year is reassessed, CRA or ARQ may review other years. Montreal CPAs anticipate these risks and prepare clients with documentation and protective strategies to minimize exposure across multiple periods.

Digital Tools for Tracking Assessments

Using CRA My Account, My Business Account, and Revenu Québec’s ClicSÉQUR portals helps track assessments, deadlines, and correspondence. Montreal CPAs help clients integrate these tools into their tax-management routines for real-time monitoring.

Maintaining Compliance While Disputing

Even if you dispute an assessment, you must continue filing and paying future taxes correctly. Montreal CPAs ensure ongoing compliance to prevent additional penalties, preserve credibility, and strengthen the objection process.

Why Choose Mackisen

With more than 35 years of combined CPA experience, Mackisen CPA Montreal helps businesses stay compliant while recovering the taxes they’re entitled to. Whether you’re filing your first GST/QST return or optimizing multi-year refunds, our expert team ensures precision, transparency, and protection from audit risk.