Understanding Your CRA Notice of Assessment (NOA) – A Complete Guide by a Montreal CPA Firm Near You

Your CRA Notice of Assessment is one of the most important tax documents you will

receive each year after filing your personal income tax return. For Canadians,

understanding the CRA Notice of Assessment is essential because it confirms whether

your return was accepted as filed, whether you owe a balance, whether you will receive

a refund, and whether CRA found any discrepancies in your tax information. Many

taxpayers receive their Notice of Assessment without fully understanding what each

section means or how CRA arrived at the numbers. Misinterpreting your NOA can lead

to unpaid balances, missed refunds, or an unrecognized request for documents or

review. This guide explains how to read a CRA Notice of Assessment, what each

section means, how to understand line-by-line details, and how to respond if CRA does

not agree with the return you filed. Understanding your CRA Notice of Assessment

ensures you stay informed, avoid penalties, and take appropriate action when required.

Legal and Regulatory Framework

The CRA Notice of Assessment is issued under section 152 of the Income Tax Act,

which authorizes the Canada Revenue Agency to assess, reassess, or confirm a

taxpayer’s return. Once CRA completes its assessment of your tax return, the agency

must send a Notice of Assessment indicating the amount of tax payable, penalties,

interest, or refund. This assessment operates as CRA’s official determination of your tax

liability for the year. Section 165 of the Income Tax Act allows taxpayers to file a formal

objection if they disagree with a CRA assessment, which must be done within 90 days.

The CRA Notice of Assessment also initiates the time period in which CRA may perform

a review, request documents, or issue a reassessment. Revenu Québec follows its own

assessment rules under the Taxation Act and issues a separate provincial Notice of

Assessment. Understanding your CRA Notice of Assessment ensures compliance with

all federal and provincial tax obligations.

Key Court Decisions

Several court decisions highlight the importance of understanding your CRA Notice of

Assessment. In Boies v. Canada, the Federal Court confirmed that a Notice of

Assessment is binding unless the taxpayer files a timely objection. The court held that

taxpayers cannot ignore their NOA or delay action once it is issued. In Kazi v. The

Queen, the Tax Court ruled that taxpayers are responsible for reviewing their Notice of

Assessment carefully because it contains critical information that affects their legal

rights. Another case, Sattva v. Canada, reinforced that CRA is entitled to rely on

information in its databases and that the Notice of Assessment reflects CRA’s

interpretation of the return unless challenged through formal channels. These cases

collectively illustrate why understanding your CRA Notice of Assessment is essential

and why taxpayers must respond appropriately when they disagree with CRA’s findings.

Why CRA Targets This Issue

CRA focuses on Notices of Assessment because they are the central communication

tool used to confirm tax calculations and discrepancies. If a taxpayer’s return contains

missing income slips, incorrect figures, overclaimed deductions, or inconsistencies with

CRA records, the Notice of Assessment will highlight these differences. CRA also uses

the NOA to communicate classification changes such as adjustments to RRSP

deduction limits, Canada Child Benefit eligibility, or GST/HST credit calculations. A

misunderstanding of your CRA Notice of Assessment can lead to unpaid balances,

interest accumulating daily, or denied benefits. CRA also uses Notices of Assessment to

trigger document requests or reviews. For this reason, understanding your CRA Notice

of Assessment is essential to respond quickly and avoid unnecessary penalties or

collections action.

Mackisen Strategy

At Mackisen CPA Montreal, we help clients interpret their CRA Notice of Assessment

and ensure that all details align with the information filed. Our first step is to compare

the NOA to your submitted return, verifying that line entries, credits, deductions, and

income amounts match. If CRA made an adjustment, we determine whether it was

correct, whether documentation is needed, or whether CRA relied on third-party

information that may be incomplete or inaccurate. If the Notice of Assessment contains

errors, we assist clients with filing a formal objection, ensuring that it is submitted within

the 90-day deadline with proper supporting documents. When clients receive a review

request following their NOA, we respond to CRA on their behalf, providing receipts,

invoices, contracts, and written explanations to support each claim. Our strategy

ensures taxpayers fully understand their CRA Notice of Assessment and remain

protected against errors or unwarranted reassessments.

Real Client Experience

One client received a CRA Notice of Assessment showing a balance owing of several

thousand dollars because CRA added income from a T5 slip issued after the taxpayer

filed their return. The taxpayer believed this was incorrect and came to Mackisen for

help. After reviewing the slip and cross-checking with financial institution records, we

determined that the income belonged to a joint account where the other account holder

was solely responsible for reporting the interest. We filed an objection with supporting

documentation, and CRA reversed the adjustment. In another case, a client did not

notice a warning on their CRA Notice of Assessment indicating that medical expenses

were under review. Weeks later, CRA issued a reassessment denying the claim due to

missing receipts. We reviewed the file, submitted all required documents, and secured

the credit for the client. These examples show how important it is to understand every

part of your CRA Notice of Assessment.

Common Questions

Many taxpayers ask why their CRA Notice of Assessment shows a different refund or

balance than they expected. CRA may have made adjustments due to missing slips,

contribution limits, benefit recalculations, or mathematical corrections. Others ask

whether the NOA confirms that CRA fully accepted the return. While the NOA is the

official assessment, CRA may still perform post-assessment reviews, meaning

additional documents may be required. Taxpayers also ask how long they should keep

their Notice of Assessment. CRA requires taxpayers to retain tax records for at least six

years, and the NOA forms part of those required records. Some people wonder whether

they need a CPA to interpret their NOA. While CRA provides explanations, a CPA

ensures accuracy, reviews discrepancies, prepares objections if necessary, and protects

taxpayers from incorrect reassessments.

Why Mackisen

With more than 35 years of combined CPA experience, Mackisen CPA Montreal helps

Canadians stay compliant while recovering the taxes they’re entitled to. Whether you

need help understanding your CRA Notice of Assessment, responding to a discrepancy,

or filing an objection, our expert team ensures precision, transparency, and protection

from audit risk.