How to file a formal dispute

How to file a formal dispute

Many misunderstandings are caused by a lack of information or by a simple miscommunication. That's why the CRA says: "Talk to us."

If you have new or additional information, you or your authorized representative can ask for a change online at My Business Account, Represent a Client, or by writing to the CRA. Many disputes are resolved this way.

If you disagree with an assessment or a determination, you can make a formal objection.

Filing an objection is the first step in the formal process of resolving your dispute. You have 90 days after the date of the notice of assessment or determination to file an objection.

You can file an objection:

• online in My Business Account at canada.ca/my-cra-business-account, or in Represent a Client at canada.ca/taxes-representatives, by selecting "File a formal dispute (Notice of Objection)" under "Corporation Income Tax"

• by mail, using Form T400A, Notice of Objection - Income Tax Act, or writing to the chief of appeals at your Appeals Intake Centre (see appendix B of Guide P148)

In all cases, you have to explain why you disagree and include all relevant facts and supporting documents.

For large corporations, your objection must:

• reasonably describe each issue

• specify for each issue the relief you are seeking, expressed as the amount of a change in the income, taxable income, loss, taxes payable, refundable amounts, and overpayments or balance of unclaimed outlays, expenses, or other amounts of the corporation

• provide facts and reasons the corporation relied on for each issue

Reference
Section 165

A large corporation that objects to an assessment will have to pay 50% of the disputed amount. A corporation is a large corporation if the total taxable capital employed in Canada at the end of the tax year by the corporation and its related corporations is over $10 million. The corporation also has to pay the full amount of taxes not in dispute.

Reference
Subsection 225.1(7)

For more information about objections and appeals, see Guide P148, Resolving your dispute: Objection rights under the Income Tax Act, or go to canada.ca/cra-file-objection.

Disputing loss determinations

The formal process of resolving a dispute does not usually apply to loss amounts under dispute, because there is no tax, interest, or penalty involved.

However, a corporation may request a loss determination if it does not agree with the amount of the losses assessed by the CRA. The CRA will determine the amount of the loss and confirm in writing by issuing Form T67AM, Notice of Determination/Redetermination of a Loss.

Once the corporation has received the notice of determination, it can file an objection within 90 days after the date of the notice.

If the corporation asks, the CRA will make determinations of the following amounts:

• a non-capital loss

• a net capital loss

• a restricted farm loss

• a farm loss

• a limited partnership loss

Send any requests for loss determinations to your tax services office or tax centre.

References
Subsections 152(1.1) and 152(1.2)

Keeping records

Keep your paper and electronic records for six years from the end of the last tax year that they relate to. If you file your income tax return late, keep your records for six years from the date you file your return.

Certain records must be kept longer. These include minute books, which have to be kept until sometime after dissolution. However, if you want to destroy your records early, complete Form T137, Request for Destruction of Records. For more information, go to canada.ca/taxes-records.

References
Subsections 230(4), 230(4.1), 230(5), and 230(6)
Regulation 5800
IC78-10, Books and Records Retention/Destruction

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