Your Appeal Rights Uder the Icome Tax Act P148(E) Rev. 00 3327
Visually impaired persos ca get iformatio o services available to them, ad ca order publicatios i braille or large prit, or o audio cassette or computer diskette, by callig 1-800-267-1267 weekdays betwee 8:15 a.m. ad 5:00 p.m. (Easter Time). The iformatio i this brochure was accurate whe it was published. However, legislative provisios ad requiremets could chage at ay time. We make every effort to provide updates i a timely maer. La versio fraçaise de cette publicatio est ititulée Vos droits d appel selo la Loi de l impôt sur le reveu.
Table of cotets Page Is this brochure for you?... 4 Prelimiary equiries... 5 Filig a objectio... 5 Why do you file?... 5 Time limits... 5 How do you file?... 6 What iformatio should you iclude?... 6 Limits o your right to object... 6 Reviewig your objectio... 7 Time extesio... 7 Appealig to the Tax Court of Caada... 9 Time limit... 9 Iformal procedure... 9 Geeral procedure... 11 Time extesio... 13 Appealig to the Federal Court of Appeal... 14 Appealig to the Supreme Court of Caada... 14 Disputed amouts... 14 Collectio procedures... 14 Repaymet of amouts paid... 15 Do you eed more iformatio?... 15 Appedix A Objectio letter... 16 Appedix B Tax Court of Caada offices... 17 3
Is this brochure for you? Y ou are etitled to fair treatmet i all your dealigs with us. Oe of the most importat features of this fair treatmet is the right to dispute a icome tax assessmet. Our Declaratio of Taxpayer Rights affirms this right. More iformatio about fairess ad your rights is available o our fairess Web page at www.ccra-adrc.gc.ca/fairess. I this brochure, we outlie what you ca do if you do ot uderstad or agree with your icome tax assessmet ad would like to dispute it. This brochure deals oly with objectios ad appeals uder the Icome Tax Act. You ca fid iformatio o objectios ad appeals uder Part IX, goods ad services tax/harmoized sales tax (GST/HST), of the Excise Tax Act i Chapter 31 of the GST/HST Memorada Series, Objectios ad Appeals. You ca also fid iformatio o appeals uder the Employmet Isurace Act ad the Caada Pesio Pla i the pamphlet called Your Appeal Rights: Employmet Isurace ad Caada Pesio Pla Coverage. These publicatios are available from your tax services office. This brochure is oly a guide. For more detailed ad techical iformatio, please see the Icome Tax Act, the Tax Court of Caada Act, ad the Federal Court Act. Note I this brochure, ay referece to assessmets also icludes reassessmets. I additio, rights of objectio ad appeal that apply to assessmets ad reassessmets also apply to determiatios ad redetermiatios we issue, such as child tax beefit ad GST credit otices. 4
Prelimiary equiries I f you do ot uderstad or agree with a assessmet, call or visit the Cliet Services Sectio of your tax services office or write to the tax cetre that processed your retur. We resolve may problems with assessmets i this way. Filig a objectio Why do you file? You ca file a objectio for may reasos, such as: you are ot satisfied with our explaatios of your assessmet; we have deied your request for a adjustmet; or there is a dispute over how we have iterpreted the icome tax law. Filig a objectio is the first step i the formal process of resolvig a dispute. After you file a objectio, the Appeals Divisio will impartially review it. Time limits If you are a idividual (other tha a trust) or filig for a testametary trust, the time limit for filig a objectio is whichever of the followig two dates is later: oe year after the date of the retur s filig deadlie; or 90 days after the day we mailed the Notice of Assessmet. I every other case, you have to file a objectio withi 90 days of the day we mailed the Notice of Assessmet. 5
How do you file? You ca file a objectio by writig to the chief of Appeals at your tax services office or tax cetre (see sample letter i Appedix A). If you prefer, you ca use Form T400A, Objectio Icome Tax Act. We have provided a copy of the form i the middle of this brochure. What iformatio should you iclude? Give the followig iformatio whe you file a objectio: your ame ad address; a telephoe umber where we ca reach you durig the day; the date of your Notice of Assessmet; the taxatio year (if applicable); your social isurace umber or Busiess Number; the facts ad reasos for your objectio; ay documets that support your objectio; ad the ame ad address of your authorized represetative (if applicable). Sig ad date your objectio. A authorized officer must sig for a corporatio or trust. Note If you iclude a copy of your Notice of Assessmet, it will help us process your objectio. Limits o your right to object I most cases, you ca object to ay item i a reassessmet. However, i a few situatios, you ca oly object to the matter that caused the reassessmet. The Appeals Divisio will tell you if limitatios apply. 6
Reviewig your objectio We will review your objectio ad cotact you or your represetative to discuss the matter. To esure that you or your represetative uderstad the reasos for the assessmet ad to provide a ope exchage of iformatio, we offer the documets related to the issues i dispute to you at the start of the review. I additio, we iform you of ay discussios we have had with the assessig area about your disputed assessmet. Our leaflet Resolvig your dispute a more ope, trasparet process outlies the type of iformatio that is available to you ad your represetative durig your dispute with us. After cosiderig all the facts, the chief of Appeals or aother authorized officer will make the fial decisio about your assessmet. If the officer agrees with you i whole or i part, we will adjust your tax retur ad sed you a otice of reassessmet. However, if the officer disagrees, we will sed you a otice to cofirm the assessmet was correct. Time extesio If you did ot file your objectio o time because of circumstaces beyod your cotrol, you ca apply for a time extesio. You ca apply by writig to the chief of Appeals at your tax services office or tax cetre. You have to explai why you did ot file your objectio o time, ad eclose your objectio. Time limit Apply as soo as possible, but o later tha oe year after the date you had to file the objectio. 7
Coditios for a extesio To get a extesio, you have to show that: withi the objectio period: you could ot object or have someoe else object for you; or you iteded to object; it would be fair to grat your applicatio; ad you applied as soo as you could. The chief of Appeals or aother authorized officer ca grat or refuse a extesio. We will otify you i writig of the decisio. If we grat you a extesio, your objectio is cosidered to be filed o the day we mail you the decisio otice. Applyig to the Tax Court of Caada If we refuse to exted the time, you ca apply to the Tax Court of Caada for further cosideratio. The Court has to receive your applicatio withi 90 days of the day we mailed you our refusal otice. You ca also apply to the Court if we do ot give you a decisio withi 90 days of the day you filed your applicatio for extesio. To apply, you eed three copies of: the applicatio set to the chief of Appeals; the objectio; ad our refusal otice (if we issued oe). Deliver or sed these copies by mail to the Registry of a Tax Court of Caada office. You ca also sed a copy of these documets by fax or by email. If you sed them i either of these ways, you also have to deliver or mail three copies to the Court at oce. You ca fid a list of the Tax Court of Caada offices i Appedix B. 8
Appealig to the Tax Court of Caada I f you do ot agree with our decisio o your objectio, you ca appeal to the Tax Court of Caada. The Tax Court of Caada is a idepedet court of law that regularly coducts hearigs i major cetres across Caada. It follows two procedures: the iformal procedure ad the geeral procedure. Time limit The Tax Court of Caada has to receive your appeal otice withi 90 days of the date we mail our decisio (a otice of reassessmet or a otice of cofirmatio) o your objectio. You ca also appeal to the Court if we do ot give you a decisio o your objectio withi 90 days of the day you filed it. Iformal procedure You qualify to use the iformal procedure if: the disputed amout of federal tax ad pealties is ot more tha $12,000 per assessmet; the disputed loss amout is ot more tha $24,000 per determiatio; or iterest o federal tax ad o pealties is the oly matter i dispute. Note If the disputed amouts are more tha the iformal procedure limits, you ca restrict your appeal to those limits. You have to state this i your appeal. To resolve appeals as quickly ad iformally as possible, the Court does ot have to follow legal or techical rules of 9
evidece. A judgmet issued uder the iformal procedure will ot be treated as a precedet for other cases. Appeal otice You do ot eed a form to file a appeal. However, you have to appeal i writig ad state the reasos for your appeal ad the relevat facts. Electio If you would like to have the Court hear your appeal uder the iformal procedure, you must clearly idicate this i your appeal otice or i a letter to the Court o later tha 90 days after the date we reply to your appeal. Filig You ca file your appeal by deliverig or mailig your appeal otice to the Registry of a Tax Court of Caada office, together with the appropriate filig fee. You ca also sed your otice of appeal by fax or by email. If you sed it i either of these ways, you also have to deliver or mail the origial of your appeal, together with the filig fee, to the Court at oce. You ca fid a list of the Tax Court of Caada offices i Appedix B. Filig fee You have to iclude a filig fee of $100 with your appeal. Your cheque for the filig fee should be made payable to the Receiver Geeral for Caada. If you are a idividual, the Court may waive this fee if it is satisfied that the paymet would cause you severe fiacial hardship. If you wat to ask the Court to waive the filig fee, you have to ask i your writte appeal. If the Court allows your appeal i whole or i part, it will reimburse the filig fee. 10
Represetatio You ca either represet yourself or have aother perso act for you. Time limits To esure prompt hearigs, the iformal procedure imposes strict time limits o us ad the Court. Geerally, the time limits are as follows: We have to reply to your appeal withi 60 days of the date the Registry of the Court seds us the appeal. The Court must hear the appeal o later tha 180 days after the last day we have to file our reply. The Court must give its judgmet withi 90 days of the date the hearig eds. Costs If you are more tha 50% successful i your appeal, the judge ca order us to pay part of your legal costs. For example, you would be i such a situatio if you are disputig $6,000 of federal tax o disallowed expeses ad the judge s decisio reduces this amout by more tha $3,000 i tax. However, if you lose your appeal, the iformal procedure rules do ot allow the judge to order you to pay our costs. Geeral procedure Uless you qualify for ad choose to follow the iformal procedure, the Tax Court of Caada will hear your appeal uder the geeral procedure, regardless of the disputed amout. 11
The geeral procedure follows formal court rules, which cover such matters as: filig of a appeal; rules of evidece; examiatios for discovery; ad productio of documets. Represetatio Idividuals ca either represet themselves or have a lawyer represet them. A lawyer has to represet a corporatio, except i special circumstaces whe the Court may allow oe of the corporatio s officers to represet it. Note For iformatio o how to file a otice of appeal, cotact ay of the Tax Court of Caada offices we have listed i Appedix B. Filig fees You have to iclude a filig fee with your appeal. We have listed the rates below: Filig fee Total federal tax ad pealty i dispute Loss cotested XSWR XSWR WR WR RUPRUH RUPRUH If iterest is the oly matter you are appealig, the filig fee is $400 regardless of the disputed amout. Costs The Court ca order the usuccessful party to pay some of the other party s legal costs. 12
Time extesio If the Tax Court of Caada does ot receive your appeal withi 90 days of the date we mailed our decisio o your objectio, you ca apply to the Court for a time extesio. Deliver or sed by mail to the Registry of a Tax Court of Caada office three copies of your applicatio, together with three copies of your otice of appeal. You ca also sed your applicatio ad appeal otice by fax or by email. If you sed your documets i either of these ways, you also have to deliver or mail three copies to the Court at oce. O your applicatio, you have to state why you did ot file your appeal o time. You ca fid a list of the Tax Court of Caada offices i Appedix B. Time limit Apply as soo as possible. The Court has to receive your applicatio o later tha oe year after the date you had to file a otice of appeal. Coditios for a extesio: To get a extesio, you have to show the Court that: withi the appeal period: you could ot appeal or have someoe else appeal for you; or you iteded to appeal; it would be fair to grat your applicatio; you applied as soo as you could; ad you have reasoable grouds for appealig. If the Court grats your applicatio, it will issue a order extedig the time to appeal. 13
Appealig to the Federal Court of Appeal A judgmet uder the iformal procedure ca be reviewed by the Federal Court of Appeal. You have to apply for a judicial review withi 30 days of the date the Tax Court of Caada commuicates its decisio to you. You ca also appeal a Tax Court of Caada judgmet uder the geeral procedure to the Federal Court of Appeal. You have to file the appeal withi 30 days of the date of the Tax Court s judgmet. The moths of July ad August are ot icluded i the 30-day calculatio. Appealig to the Supreme Court of Caada Y ou ca appeal a judgmet of the Federal Court of Appeal to the Supreme Court of Caada. However, you first have to get the Supreme Court s permissio. Disputed amouts Collectio procedures If you file a objectio, we usually postpoe collectio actio o amouts i dispute util 90 days after we mail our decisio to you. If you file a appeal to the Tax Court of Caada, we usually postpoe collectio actio o amouts i dispute util the Court mails its decisio or you ed your appeal. For some situatios we will ot postpoe collectio actio o disputed amouts, such as for taxes you had to withhold ad remit. 14
I all cases, iterest will cotiue to accrue o ay amout payable. You ca pay all or part of the amout, ad you will receive a refud with iterest if you are successful. If you lose your appeal to the Tax Court of Caada, we will resume collectio actio eve if you appeal the Court s decisio. However, we will accept security for paymet while your appeal is outstadig. Repaymet of amouts paid If you have already paid the disputed amouts, or if you gave security istead, you ca apply i writig to have us repay that amout or release the security we are holdig. We ca repay disputed amouts or release the security if: you have filed a objectio ad we have ot cofirmed the assessmet or issued a reassessmet withi 120 days of the date you filed it; or you have appealed to the Tax Court of Caada. Do you eed more iformatio? W e would like to resolve disputes without goig to court, especially if factual matters are the oly cocer. If you would like more iformatio, please cotact the chief of Appeals of your tax services office or tax cetre. For the telephoe umber of the Appeals Divisio, see the listigs i the govermet sectio of your telephoe book. If you have a hearig or speech impairmet ad use a teletypewriter (TTY), you ca call our toll-free, biligual TTY equiry service at 1-800-665-0354 durig regular hours of service. 15
Appedix A Objectio letter Your address ad telephoe umber Date Chief of Appeals Tax Services Office or Tax Cetre Re: Objectio to 19 reassessmet (give your social isurace umber) Dear Sir or Madam, I object to the reassessmet of my 19 eclosed a copy of my Jauary 15, 20 icome tax retur. Please fid, Notice of Reassessmet. I July 19, I moved from Vacouver to Ottawa to start a ew job. I claimed the movig expeses o my 19 retur ad attached Form T1-M, Movig Expeses Deductio. As my T1-M form idicates, I drove to Ottawa with my family. I my claim for trasportatio costs, I icluded the followig costs of a side trip to Baff: travel costs (gas + car repair) $253.75 lodgig (1 ight) $120.00 meals (2 days) $165.50 The Caada Customs ad Reveue Agecy disallowed this part of my claim. Origially, I iteded to take a day trip from Calgary to Baff. However, my car overheated o the way, ad I had to stay overight for radiator repairs. Sice I could ot cotrol this situatio, I thik you should allow this cost as a movig expese. At the very least, you should let me claim the $218.95 car repair. I would be pleased to discuss this matter with you. Yours truly, Your ame Eclosure 16
Appedix B Tax Court of Caada offices Motréal Tax Court of Caada 18th floor Suite 1800 500 Place d Armes Motréal QC H2Y 2W2 Tel.: Fax: Toroto (514) 283-9912 1-800-927-5499 (514) 496-1996 Tax Court of Caada Suite 902 200 Kig Street West P.O. Box 10 Toroto ON M5H 3T4 Tel.: Fax: (416) 973-9181 1-800-927-5499 (416) 973-5944 Ottawa Tax Court of Caada 2d floor 200 Ket Street Ottawa ON K1A 0M1 Tel.: Fax: Vacouver (613) 992-0901 1-800-927-5499 (613) 957-9034 Tax Court of Caada 17th floor 700 West Georgia Street P.O. Box 10091 Vacouver BC V7Y 1A1 Tel.: Fax: (604) 666-7987 1-800-927-5499 (604) 666-7967 You ca sed a appeal or a applicatio for time extesio by email at: Registry.greffe@tcc-cci.gc.ca 17
Your opiio couts! I f you have ay commets or suggestios that would help us improve the explaatios this brochure cotais, we would like to hear from you. Please sed your commets to: Appeals Brach Caada Customs ad Reveue Agecy 21st floor 25 Nicholas Street Ottawa ON K1A 0L5 18