It should come as no surprise to any Canadian that the CRA has resources at its disposal to find any and all monies owed to the government. Even if you file your taxes, on time, every year, if any inconsistencies exist and a reassessment is considered warranted, a tax debt can appear, seemingly out of nowhere.
Filing an objection is often your only avenue for recourse in a situation such as this. An objection is the process through which you challenge a notice of assessment you believe is inaccurate. If you’ve filed your taxes and been reassessed, and now find yourself sitting with a substantial tax debt in the form of back taxes, this article from the Financial Post, “Fighting the tax man: What to do if the CRA orders you to pay back taxes,” is a must-read.
Find it here: http://www.financialpost.com/m/wp/news/blog.html?b=business.financialpost.com/legal-post/fighting-the-tax-man-what-to-do-if-the-cra-has-ordered-you-to-pay-50000-in-back-taxes&pubdate=2016-08-03.
If you have been reassessed, regardless of the amount, you really do need to act quickly – the interest does accumulate at an astounding rate. That being said, while the CRA does take the 90-day period very seriously, in our experience, a well written appeal for an extension does usually grant some relief.
A notice of objection is a serious opportunity to deal with a CRA debt you believe is unjust. If you can prove, by providing appropriate documentation, that the money should not be owed, you need to do so.
Don’t take a chance – if you owe back taxes, call Tax Solutions Canada today to get an application started. The process is indeed a long one, but well worth it if successful. 1 888-868-1400.