Canadian Tax Dispute Deadlines: A Practical Primer
Introduction
Disputing a tax assessment is stressful for any individual or any business owner. One way to manage that stress is to ensure that you stay on top of any potential tax deadlines when disputing with the Canada Revenue Agency (CRA). This article aims to offer some practical information on that, whether you are dealing with income tax, Goods and Services Tax / Harmonized Sales Tax (GST/HST), or Canada Pension Plan (CPP) and Employment Insurance (EI) deductions.
A non-exhaustive deadline checklist is included at the end of this article, which can be used along with consulting this article. Calculating legal deadlines can be tricky, as special rules under the Interpretation Act (ss. 26-30) apply. If you are not sure or have any questions, make sure that you consult a tax lawyer first.
Income Tax Dispute Deadlines
Under the Income Tax Act (ITA), the first level of dispute is filing a Notice of Objection, which requests the CRA to conduct a separate and independent review of your assessment. The second level of dispute is filing a Notice of Appeal with the Tax Court of Canada if you disagree with the objection review. The following deadlines apply if you intend to dispute an assessment.
How Long Do You Have to Object to an Income Tax Assessment Issued by the CRA?
Under the the ITA, a taxpayer generally has 90 days from the date the notice of assessment or reassessment was sent to file a Notice of Objection, which triggers a separate and independent review of your assessment by a CRA Appeals officer.
For individuals (other than trusts) and Graduated Rate Estates (GREs), the objection deadline is the later of (a) 90 days after the notice of assessment or reassessment is sent and (b) 1 year after the taxpayer’s filing due date for the year.
For corporations and most other taxpayers, the standard 90-day objection period applies.
After reviewing your notice of objection and the related materials, the CRA Appeals officer will notify you of their decision usually by a Notice of Confirmation, which may be to confirm, to change, or to cancel the initial assessment.
See this CRA webpage for additional guidance on income tax objections.
Statutory References: ITA ss. 165(1) and 165(1.1)
Missed the Notice of Objection Deadline to an Income Tax Assessment? Extension May Be Available.
If the initial objection deadline is missed, a taxpayer may apply to the CRA for an extension of time to file the Notice of Objection, but this extension application must be made within one year after the expiry of the original 90-day objection period. The CRA has discretion to approve or refuse the extension request.
If the CRA refuses to grant the extension, the taxpayer may apply to the Tax Court of Canada within 90 days for an appeal after the mailing of the extension refusal (usually, the issue date of the decision).
See this CRA webpage for additional guidance on requesting an extension for an income tax objection.
Statutory References: ITA ss. 166.1(7)(a) and 166.2
When Can You Appeal an Income Tax Assessment to the Tax Court of Canada?
If you disagree with the CRA Appeals officer’s decision issued after reviewing your notice of objection, you can appeal to the Tax Court of Canada. To do so, you must file a Notice of Appeal within 90 days after the day the notice of the CRA Appeals officer’s decision has been sent (usually, the issue date of the decision).
See this CRA webpage for additional guidance on making an appeal to the Tax Court of Canada.
Statutory References: ITA s. 169(1)
What If You Missed the Deadline for Appealing an Income Tax Assessment to the Tax Court? Potential Extension Is Also Available.
If the taxpayer does not file the appeal from the CRA objection decision on time, they can file an extension application to the Tax Court, which must be done within one year after the expiration of the initial 90-day appeal period.
Statutory Reference: ITA s. 167(5)(a)
GST/HST Dispute Deadlines
The dispute process and deadlines for GST/HST assessments are similar but not identical to those of income tax assessments. This is because GST/HST is governed by a different legislation, the Excise Tax Act (ETA).
How Long Do You Have to Object to a GST/HST Assessment Issued by the CRA?
Under the ETA, a taxpayer generally has 90 days after the notice of assessment is sent (usually the issuance date) to file a Notice of Objection.
See this CRA webpage for additional guidance on GST/HST objections.
Statutory References: ETA s. 301(1.1)
Extension Is Possible If You Missed the Objection Deadline for an GST/HST Assessment
Like the ITA, the ETA also permits a taxpayer to apply to the CRA for an extension of time to file the Notice of Objection, and this extension application must also be made within one year after the expiry of the original 90-day objection period. The CRA retains discretion to approve or refuse the extension request.
If the extension is not granted by the CRA, the taxpayer may apply to the Tax Court of Canada for an appeal within 90 days after the mailing of the extension refusal (usually, the issue date of the decision).
See this CRA webpage for additional guidance on requesting an extension for a GST/HST objection.
Statutory References: ETA s. 303(1)(a)
When Can You Appeal an GST/HST Assessment to the Tax Court of Canada?
If the taxpayer is not satisfied with the CRA objection decision, a taxpayer may appeal to the Tax Court of Canada within 90 days after a notice of confirmation, reassessment, or additional assessment is issued.
Statutory References: ETA ss. 302 and 306
Extension for Appealing to the Tax Court Is Also Available If the Initial GST/HST Objection Deadline Is Missed.
If the taxpayer does not file the appeal from an GST/HST objection on time, they can file an extension application to the Tax Court, which must be done within one year after the expiration of the initial 90-day appeal period.
Statutory References: ETA s. 305(5)(a).
CPP and EI Dispute Deadlines
Along with income tax, CPP contributions and EI premium payments are part of the payroll deductions that must be withheld and remitted by the employer to the CRA. CPP and EI are governed by the Canada Pension Plan (CPP Act) and Employment Insurance Act (EI Act), respectively.
How Much Time Do You Have to Dispute a CPP/EI Decision or Assessment with the CRA?
Unlike an assessment under the ITA or ETA, you only have 90 days from the date of assessment (usually the issuance date) to file an internal appeal with the CRA to dispute a CPP/EI Decision or Assessment.
No extension is available if the 90-day CPP/EI appeal period expires. This tight deadline has been confirmed by the Tax Court in Neptune Service Ltd v. The Queen, 2017 TCC 248 (see paragraph 3).
Statutory References: CPP Act ss. 27 and 27.1; EI Act ss. 91 and 92
When Can You Appeal a CPP/EI Decision or Assessment to the Tax Court?
You have 90 days after the CRA CPP/EI decision has been communicated to you (usually the issuance date of the notice) to file an appeal to the Tax Court to dispute the CRA’s decision.
Statutory References: CPP Act s. 28(1); EI Act s. 103(1)
Extension Is Possible, if the Initial Deadline for Appealing a CPP/EI Decision or Assessment to the Tax Court has passed
It is possible to request the Tax Court to grant an extension to file an appeal if this request is made within 90 days after the initial appeal period expires.
Statutory References: CPP Act s. 28(1); EI Act s. 103(1)
Deadline Checklist
Step 1: Identify the Type of Tax Matter
☐ Income tax assessment or reassessment, including payroll deductions for the income tax amount
☐ GST/HST assessment or reassessment
☐ CPP ruling or assessment
☐ EI ruling or assessment
☐ Other CRA decision – if this applies, this checklist is not applicable.
Tip: Different tax legislations have different objection and appeal deadlines.
Step 2: Record Key Dates Immediately
As soon as you receive a CRA notice, record:
☐ Dates the notice was issued and received
☐ 90-day objection deadline for an internal appeal within the CRA
☐ 90-day Tax Court appeal deadline, if it is a CRA objection decision
☐ Any extension deadline (as applicable)
Tip: Do not rely on memory. Enter all deadlines into your calendar and set multiple reminders.
Step 3: Monitor the CRA’s Responses to the Objection
☐ Write your notes on all the verbal communications you have had with the CRA. Be sure to request and record the CRA agent’s work ID and/or name.
☐ Keep copies of all CRA correspondences.
☐ Keep proof of filing and proof of delivery
☐ Follow up if significant time has passed without a CRA response to your objection.
You can connect with Jingcai via LinkedIn or at the email listed below.