It’s no secret that the CRA appeals process is very slow. For example, it takes approximately 143 days to resolve low-complexity objections and 896 days for higher complexity.
You might think the CRA would delay collections action during ongoing GST appeals, but it doesn’t. Even if the CRA is the reason behind the delay, businesses must still pay up. If a CRA auditor determines that you owe taxes, they will mail you a Notice of Assessment. You have 90 days to respond and initiate the CRA appeals process if you object to the assessment.
That means extra stress and time away from what matters most as a business owner. But when you have someone on your side, you can get back to business as usual sooner.
As a former CRA auditor, I understand the ins and outs of the system and can help you navigate it more smoothly.
If your CRA appeal is denied, you have a final recourse: Tax Court.
In Tax Court, Supreme Court justices hear cases. If you disagree with CRA and retain a tax lawyer, your lawsuit will be heard before a judge. After the hearing, the court will issue a decision for you.
This stage is expensive for both you and the CRA. The CRA has to pay for legal counsel out of their budget, just like you do. If they lose, it could set a legal precedent that might open Pandora’s box of problems for them.
For this reason, very few appeals end up in Tax Court.
You can still file a Notice of Objection after the 90-day period ends. You can claim an extension of up to one year if you demonstrate your failure to meet the deadline was due to circumstances outside of your control.
Book a free appointment to learn more.