Grow To New Heights

The first thing to do is to file a Notice of Objection. A Notice of Objection is a kind of internal appeal that can be filed with the CRA to dispute the amount of tax levied in a Notice of Assessment or Reassessment.

If you disagree with the findings of the CRA to your Notice of Objection, or feel that your case may not be well suited to adjudication through the CRA, you can file an appeal to the Tax Court to continue contesting it.

The Tax Court has only three powers granted to it with respect to appeals of assessments and reassessments:

- The Tax Court of Canada judge may confirm the assessment or reassessment issued by the CRA;

- The Canada Tax Court judge can vacate the assessment, which means that the taxpayer reverts to the prior assessment;

- The Tax judge may also direct the Minister to reassess the taxpayer in accordance with his or her instructions, based on findings from trial or through a settlement offer.

Unfortunately, it does not have jurisdiction to direct the CRA to waive interest or cancel penalties otherwise than by finding them to be inapplicable at law. It cannot direct that assessments be cancelled or adjusted on compassionate or “equitable” grounds”.