TAX OBJECTIONS: WHAT HAPPENS NEXT?
APPEALS PROCESS MOVES SLOWLY UNTIL SUDDEN ACTION IS REQUIRED
As we have reported on, Canada Revenue Agency (“CRA”) and other government authorities appear to be ramping up their tax audit activity. While taxpayers have statutory rights to appeal assessments they view as incorrect by filing a Notice of Objection, what happens after filing those documents can be unclear.
Appeals processes initially move slowly and can feel a bit like a “black box”. Government officials are generally not forthcoming with updates, and it is not uncommon for taxpayers to hear nothing for months – or even years! However, when the appeal does advance, the timelines for action can suddenly become very short.
A failure to respond in time can result in an objection being denied, or the permanent loss of one’s further appeal rights.