In Canada, if you are issued a Notice of Assessment, and disagree with the outcome of the Canada Revenue Agency’s assessment, you have the right to file an objection stating your reasons for disagreeing. If the Canada Revenue Agency’s decision regarding your objection is negative, you then have the right to appeal the assessment or determination to the Tax Court of Canada (TCC).

The Tax Court of Canada is an independent court of law that conducts hearings across Canada. There are two procedures followed: Informal and General. Whether your appeal will follow General Procedure rules or Informal Procedure rules depends on the amount of federal tax in dispute.

Informal Procedure

You may qualify to appeal under the Informal Procedure if the disputed amount of federal tax and penalties is $25 000 or less, the disputed loss amount is $50 000 or less, or if you’re only appealing interest and penalties.

This procedure is usually quicker than the General Procedure and the TCC is more flexible in its application of the rules of evidence. Additionally, you will not be charged a filing fee for an Informal Procedure appeal.

General Procedure

If you do not qualify to have your appeal heard under the Informal Procedure process (the amount in dispute is higher than those stated above), you are required to follow the General Procedure rules.

Under this procedure the TCC requires a filing fee ranging from $250 to $550, depending on the amount in dispute.

If you have questions about the various Tax Court Appeals, this handy chart may just help you find the answer.

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*Information courtesy of Tax Court of Canada http://cas-cdc-www02.cas-satj.gc.ca/portal/page/portal/tcc-cci_Eng/Process/Appeals_TCC

As you can see, depending on your situation, the procedure may differ. You will also notice that the time limits relating to each appeal are all quite confined – no matter your situation, you really don’t have much time to waste.

Is the CRA on your back? Call Tax Solutions Canada today to get things figured out: 1-888-868-1400.

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