Understanding Your CRA Notice of Assessment

Introduction
Understanding your CRA Notice of Assessment is essential for every taxpayer in Canada because this document determines whether your tax return has been accepted, corrected or reassessed by the Canada Revenue Agency. The Notice of Assessment confirms your income, credits, deductions and refund or balance owing. It also indicates if the CRA has identified discrepancies, missing information or potential audit concerns. Many individuals do not fully understand how to interpret the NOA, which can lead to confusion, missed refunds, unaddressed errors or unintentional non-compliance. Because both the CRA and Revenu Québec issue separate assessments, taxpayers living in Québec must review two different documents every year. This guide explains how to read, interpret and verify your CRA Notice of Assessment so you can ensure accuracy and protect yourself from penalties or future reassessments.

Legal and Regulatory Framework
The legal basis for understanding your CRA Notice of Assessment comes from the Income Tax Act, which allows the CRA to review, assess and reassess tax returns. When you file a personal income tax return, the CRA evaluates the information and issues an NOA that legally confirms your taxable income, credits, deductions and tax payable. Under section 152 of the Income Tax Act, taxpayers must receive a Notice of Assessment after filing, and the CRA has the authority to correct errors or challenge claims. In Québec, the Taxation Act governs how Revenu Québec issues its own Notice of Assessment. Both agencies use automated matching systems to compare employer slips, bank slips and third-party filings to ensure accuracy. Understanding your CRA Notice of Assessment also requires knowing that taxpayers have the right to request explanations, submit additional documentation, file an adjustment or challenge the assessment through a Notice of Objection if they disagree with the result.

Key Court Decisions
Court decisions have clarified many issues related to understanding your CRA Notice of Assessment. In cases such as Canderel Ltd. v Canada, principles of income determination influence how the CRA interprets tax returns before issuing an assessment. Decisions in the Tax Court of Canada confirm that a Notice of Assessment is presumed to be correct until the taxpayer proves otherwise. Cases involving disallowed expenses, denied credits and disputed income show that taxpayers must maintain proper documentation and respond promptly to CRA requests. Courts have also ruled on deadlines for filing a Notice of Objection, reinforcing that taxpayers must act quickly if they disagree with their assessment. These decisions highlight why understanding your CRA Notice of Assessment is critical for identifying errors, supporting claims and protecting your rights.

Why CRA Targets This Issue
Understanding your CRA Notice of Assessment is important because many taxpayers mistakenly assume the NOA is always accurate. However, the CRA routinely adjusts returns based on missing slips, mismatched information or disallowed deductions. The agency also uses the NOA as a starting point for future audits when inconsistencies appear. Errors in an NOA can include incorrect employment income, denied medical credits, missing tuition amounts, unreported investment income or recalculated RRSP deductions. If a taxpayer fails to review their Notice of Assessment carefully, they may unknowingly pay more tax than required or lose access to credits and benefits such as GST credit, Canada Child Benefit or Quebec solidarity credit. CRA monitoring systems flag returns with repeated discrepancies, making a clear understanding of your CRA Notice of Assessment essential for avoiding reassessments and compliance issues.

Mackisen Strategy
Mackisen CPA provides a systematic approach to understanding your CRA Notice of Assessment. Our team reviews each section of the NOA, including taxable income, RRSP room, carryforward balances, credits allowed, benefits recalculated and any CRA adjustments. We compare the assessment against the original tax return to identify discrepancies, omissions or incorrect CRA decisions. When the CRA denies credits or adjusts deductions, Mackisen gathers supporting documentation, prepares explanations and submits adjustments or objections when necessary. For Québec residents, Mackisen performs a dual review of both the federal and provincial Notices of Assessment to ensure consistency. Understanding your CRA Notice of Assessment requires expertise in detecting mismatches between T4s, RL slips, T5s, tuition forms and foreign income declarations. Mackisen ensures every taxpayer receives an accurate assessment and protects their right to challenge incorrect CRA findings.

Real Client Experience
Many taxpayers come to Mackisen after discovering unexpected changes in their CRA Notice of Assessment. One client received a reassessment denying medical expenses because receipts were not submitted. Mackisen reconstructed the file, provided full documentation and successfully restored the claim. Another client noticed their NOA showed unreported investment income, even though the slip had not been received. We reviewed the account, obtained missing statements and corrected the return. Several taxpayers experience large differences in refund expectations due to CRA adjustments affecting RRSP deductions or childcare expenses. Understanding your CRA Notice of Assessment in these situations is crucial for detecting mistakes and preventing overpayment. Mackisen regularly assists clients who receive review letters following their assessment, helping them respond properly to avoid penalties and further reassessment.

Common Questions
Taxpayers frequently ask how to read the key sections of their NOA. Understanding your CRA Notice of Assessment requires reviewing taxable income, total credits, refund or balance owing, tax instalment requirements, RRSP contribution room and carryforward balances. Many people ask what to do if the CRA makes an error. The answer is to file a T1 Adjustment Request or, in cases of disagreement, a Notice of Objection within the legal deadline. Another common question concerns why the CRA recalculates benefits such as GST credit or Canada Child Benefit after issuing the NOA. These benefits depend on income reported in the NOA, so any adjustment can alter the payments. Québec residents often ask why their provincial assessment does not match the federal one. Different rules for credits and deductions mean the two assessments rarely match exactly. Understanding your CRA Notice of Assessment helps clarify these issues and ensures taxpayers take the correct next steps.

Why 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. When it comes to understanding your CRA Notice of Assessment, we provide detailed reviews, identify errors, resolve discrepancies and guide you through adjustments or objections with full professionalism.