CRA Appeals and Notices of Objection.
Filing the objection is the easy part. Winning it requires a different kind of work.
How we approach this work.
When the CRA reassesses you, the formal way to challenge that reassessment is by filing a Notice of Objection. The objection is reviewed by the CRA Appeals Division, a separate branch of the CRA that is structurally independent of the audit team that issued the reassessment.
The deadline to object is strict and rarely forgiven: 90 days from the date on the Notice of Reassessment for most income tax matters. Missing it shifts your options dramatically and, in many cases, eliminates the objection route entirely.
What the Appeals Division actually does
An Appeals Officer takes a fresh look at the file. They are not bound by the audit team's reasoning, and they are evaluated in part on the quality of their decisions rather than on confirming reassessments. In many cases, the Appeals Division will reduce or reverse positions taken at audit when the legal arguments are properly developed and the supporting record is in order.
That does not happen on its own. The Appeals Officer is reviewing many files at once and will give the most attention to objections that present the issues clearly, cite the relevant authorities, and address the audit team's reasoning head on.
How we build an objection
We treat the objection as the first formal pleading in a tax dispute. That means a focused statement of facts, a clear identification of the issues, the legal basis for each position, and supporting evidence organized so that the Appeals Officer can find what they need.
We then engage with the Appeals Officer directly. That includes substantive written submissions, conference calls, and where appropriate, in-person meetings. The objective is a principled resolution at this stage, before the cost and exposure of Tax Court litigation.
Possible outcomes
An objection can result in a full reversal of the reassessment, a partial reduction, a settlement on agreed terms, or a confirmation of the original assessment. If the matter cannot be resolved at Appeals, the next step is usually a Notice of Appeal to the Tax Court of Canada, for which there is a separate 90 day window after the CRA confirms the reassessment.
What goes into a strong Notice of Objection
The Notice of Objection is the document that frames the entire dispute. Once filed, it sets the boundaries of what can later be argued at Appeals and, if necessary, in the Tax Court. A thin objection that simply says the reassessment is wrong leaves the file with nowhere to go.
We draft objections that include a clear statement of the relevant facts, an identification of each issue in dispute, the specific provisions of the Income Tax Act or Excise Tax Act being relied on, the leading case law, and a structured response to the audit team's reasoning. Where the supporting record is voluminous, we organize and index it so the Appeals Officer can move through it efficiently.
Working with the Appeals Officer
Appeals is a negotiation as much as an adjudication. The Appeals Officer has discretion. They can accept your position, reject it, or propose a settlement that resolves part of the dispute and leaves the rest. The relationship matters. So does the willingness to engage substantively rather than posture.
We approach each Appeals Officer with the same baseline: clear written submissions in advance, focused conference calls on the points where there is real disagreement, and a genuine effort to find a principled resolution. Where the Appeals Officer is heading in the wrong direction, we say so clearly and on the record, because that record matters if the file moves to Tax Court.
Settlement at the Appeals stage
Settlements at the Appeals stage are subject to a legal constraint that does not apply to ordinary commercial settlements. Under the principle commonly associated with the Galway and CIBC World Markets line of cases, the CRA cannot settle a tax dispute on a basis that has no foundation in fact or law. That means a pure split-the-difference number is not available. Any settlement must reflect a defensible legal position on the facts.
We structure settlement proposals to fit within that constraint while still capturing real movement off the original reassessment. Done properly, that produces a result that holds up if anyone later asks how the number was arrived at.
Large File and complex objections
Large File objections — typically corporate matters with substantial dollar amounts, multiple issues, and lengthy audit records — are managed by specialized teams within the CRA. They tend to involve longer timelines, more substantive written exchanges, and more frequent meetings. The work is closer to litigation preparation than to a simple administrative review.
We staff and manage these files accordingly, including coordinating with the taxpayer's accountants, in-house counsel, and any external experts whose evidence will eventually be needed if the matter proceeds to court.
Late-filed objections and extensions of time
If the 90 day deadline has passed, the Income Tax Act allows an application for an extension of time, but only within a further one year window and only where specific conditions are met: the taxpayer must show a bona fide intention to object within the original period, that it would be just and equitable to grant the extension, that the application was made as soon as circumstances allowed, and that there are reasonable grounds for objecting.
These applications are not routinely granted. We assess them carefully and, where the file supports it, prepare the supporting affidavit evidence required to make the case.
What our Appeals engagements typically include
A typical engagement covers: review of the reassessment and the audit file, filing of the Notice of Objection with full written submissions, all correspondence and meetings with the Appeals Officer, written responses to any further requests, settlement discussions where appropriate, and a clear recommendation on whether to accept the eventual decision or proceed to Tax Court.
Where the file is heading to Tax Court, we transition directly into preparation of the Notice of Appeal so no time is lost on the next 90 day deadline.
Is this the right service for your situation?
If you have received a Notice of Reassessment, a Notice of Confirmation, or any decision letter from the CRA Appeals Division and you believe the assessment is wrong, in whole or in part, this service is for you. The earlier you engage counsel after receiving the reassessment, the more strategic options remain available.
Common questions.
What is the deadline to file a Notice of Objection?
For most income tax matters, the deadline is 90 days from the date on the Notice of Reassessment. For GST/HST matters, it is also 90 days. There is a limited extension procedure for missed deadlines, but it is discretionary and is not a substitute for filing on time.
Will I have to pay the assessed amount while the objection is pending?
For most personal income tax matters, the CRA stops collections action while a valid objection is in process. For corporate tax and GST/HST, the rules are different. We will explain how this applies to your matter and, where appropriate, work with the CRA Collections division to manage the file.
How long does the objection process take?
Standard objections are typically resolved within nine to eighteen months. Complex or large-dollar objections can take longer. Files involving CRA project initiatives, where many similar objections are queued together, can also stretch beyond that range.
Can the objection make things worse?
In practice, an objection rarely results in a worse outcome than the original reassessment, because the Appeals Officer is reviewing the same issues. The risk is more often that the objection is dismissed and the reassessment is confirmed, which is the situation that leads to a Tax Court appeal.
Do I have to attend in person?
No. The objection process is largely a paper and telephone process. In-person meetings are arranged when they would be useful, but they are not required.
Can I add new arguments at the objection stage?
Yes. You are not limited to the arguments you raised during audit. The objection is your opportunity to fully frame the legal and factual case, including arguments and evidence the audit team did not consider. Doing this well at Appeals also preserves and strengthens the position if the matter eventually goes to Tax Court.
What happens if my objection is denied?
If the Appeals Officer issues a Notice of Confirmation upholding the reassessment, you have 90 days from the date of that confirmation to file a Notice of Appeal with the Tax Court of Canada. We assess the merits of an appeal before that decision is made and, where appropriate, prepare the pleadings without losing time.
Is interest still accumulating during the objection?
Yes. Arrears interest continues to accrue on disputed amounts at the prescribed rate while the objection is pending. That makes the time value of the dispute a real factor, and it is one of the reasons we work to resolve objections as efficiently as the issues allow.
Should I keep my accountant involved?
Usually, yes. Your accountant is often the person closest to the underlying records and the original return. We work alongside accountants throughout the objection process, with clear lines on what is privileged legal work and what remains in the accountant's normal scope. The combined team produces a stronger result than either advisor alone.
Your CRA file deserves serious counsel.
Whether you have just received an audit letter or you are weeks away from a Tax Court hearing, we can help. Initial consultations are confidential and we work with clients across Canada.