Notices of Objection

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MILLAR KREKLEWETZ LLP is a boutique Canadian law firm with lawyers who have significant expertise in preparing Notice of Objection to tax assessments relating to GST, income tax, and provincial retail sales taxes (including gasoline tax, fuel tax, and tobacco tax issues).

The following is a short introduction to our services in this area.


Notices of Objection

Federal Tax Assessments

When faced with a Federal Tax assessment under the federal Income Tax Act (the ITA) and the GST provisions in the Excise Tax Act (the ETA) the taxpayers Notice of Objection can often be critical to resolving the dispute in the taxpayers favour.

The Notice of Objection is the taxpayers opportunity to demonstrate that the assessment is incorrect and should be vacated or amended.

The ETA and the ITA effectively require that the Notice of Objection fully and adequately disclose all relevant issues, together with all of the relevant facts. Where an issue has not been properly disclosed, with proper facts and reasons, the taxpayer may risk legislative prohibition on any further appeal of the issue.

Due to the high costs of appeals and ultimate trial before the courts, as a practical matter, the Notice of Objection is often the taxpayers only opportunity to challenge an assessment.

Furthermore, there are important deadlines under the Federal legislation governing when a taxpayer must file their Notice of Objection, or lose their ability to challenge the assessment altogether.

All of this makes it imperative that taxpayer select their tax advisors with care because whoever drafts the Notice of Objection is effectively required to get it all right, the first time.

Millar Kreklewetz LLP is well-placed to assist with drafting federal Notices of Objection and persons facing assessments under the federal ITA and the GST provisions in the ETA are encouraged to contact us for more infomation on the issues inherent in their files.

Provincial Sales Tax Assessments

When faced with a Provincial Tax assessment under, for example, the Ontario Retail Sales Tax Act, Gasoline Tax Act, Fuel Tax Act, or Tobacco Tax Act, the Notice of Objection can likewise be critical to resolving the dispute in the taxpayers favour.

Each of the retail sales tax provinces, plus Quebec , has its own statutory regime that permits taxpayers to challenge assessment of provincial taxes through an initial Notice of Objection.

Generally, the applicable legislation in each province requires a taxpayer to set out minimum information regarding the issues, facts or reasons supporting the objection, which at the initial stage is typically referred to as an appeal.

However, there are important differences between the provinces in terms of the consequences of these requirements. Taxpayers should be cautious regarding their obligations to set out this minimum information in the Notice of Objection because some provinces are particularly restrictive. In these provinces, where an issue has not been properly disclosed, with proper facts and reasons, the taxpayer may risk legislative prohibition on any further appeal.

There are also important deadlines under the provincial legislation governing when a taxpayer must file their Notice of Objection, or lose their ability to challenge the assessment altogether.

All of this makes it imperative that taxpayer select their tax advisors with care because whoever drafts the Notice of Objection is effectively required to get it all right, the first time.

Millar Kreklewetz LLP is also well-placed to assist in drafting provincial Notices of Objection, and persons facing provincial sales tax assessments are encouraged to contact us for more infomation on the issues inherent in their files.