A letter from the CRA is easier to answer with someone who reads them every week. Most of them are routine and are made worse by being ignored, a few are serious and are made worse by being answered carelessly, and telling the two apart is most of the value.
Send us what you received. We will tell you what it actually is, what it is asking for, what the deadline is, and what we would do about it.
What this includes
- Reading the letter and explaining what it means in plain terms
- Gathering and presenting what the CRA has asked for
- Representation during a review or an audit, dealing with the auditor directly
- Notices of objection where a reassessment is wrong
- Taxpayer relief requests for penalties and interest where there is a case
- Voluntary disclosures where something needs correcting before the CRA finds it
Deadlines are the part that cannot be fixed later
Most CRA correspondence carries a date, and some of those dates close a door permanently. A notice of objection has a filing deadline measured from the date on the reassessment, not from the day you opened the envelope. If you have a letter in a drawer, the first useful thing to do is find the date on it.
Most letters are not an audit
Processing reviews, matching letters and requests for a receipt are routine and are usually settled by sending what was asked for. An audit is a different thing and is worth having someone else conduct. Panic is rarely warranted; silence almost always makes it worse.
If something is actually wrong
There is a route for that too, and it works better when you use it first. Voluntary disclosure, taxpayer relief and the objection process each apply to different situations, and choosing the right one matters.
Questions we are asked about this
I received a CRA letter. Is it an audit?
Usually not. Most CRA letters are processing reviews or requests for a document, and are settled by sending what was asked for by the date given. An audit is announced as one and involves an assigned auditor. The letter itself will say which it is.
How long do I have to object to a reassessment?
The deadline runs from the date on the notice of reassessment, not from when you received it, and it differs between individuals and corporations. Because the date is on the notice, the first thing to do with a reassessment you disagree with is check it.
Can penalties and interest be reduced?
Sometimes. The CRA has taxpayer relief provisions for circumstances such as serious illness, a natural disaster or an error on their side. Relief is discretionary rather than automatic, and a request has to set out the facts and the grounds.
Can you deal with the CRA on my behalf?
Yes, with authorisation on your account. In practice that means the auditor's questions come to us, the documents go from us, and you are not on a call trying to answer something you were not expecting.
Worth reading
- CRA notice of non-compliance and the new penalties
- A CRA audit checklist for businesses
- New CRA compliance rules
Where we work
We are based in Scarborough and act for clients across Toronto and the GTA in person — see accountant in Scarborough and small business accountant in Toronto — and everywhere else in Canada by email and video call.
Our other services
Corporate Tax Returns (T2) · Personal Tax Returns (T1) · Trust Returns (T3) · HST and GST Filing · Bookkeeping · Payroll · Financial Statements · Tax Planning · Incorporation and Business Setup · Estate and Succession Planning · Cross-Border Tax
Our office
ClearWealth Accounting Advisors
1457 McCowan Rd, Suite 202
Toronto, Ontario M1S 5K7
Get directions
Open Monday to Friday, 9 a.m. to 6 p.m.
Phone: (437) 290-5117
Email: info@clearwealth.tax
