How do I dispute a CRA HST/GST assessment?
Disputing a GST/HST assessment follows a similar process to income tax disputes, but the governing legislation is the federal Excise Tax Act rather than the Income Tax Act. You file a Notice of Objection with CRA within 90 days of the date on your assessment. The objection is reviewed by CRA's Appeals Branch independently of the auditor who issued the assessment.
The content of an HST objection is the same as for income tax: identify the assessment, state the issues in dispute, provide the factual and legal basis for your disagreement, and specify the relief you are seeking. Support your objection with documentation — invoices, contracts, input tax credit records, and any other records relevant to the amounts in dispute.
If CRA confirms the assessment, you can appeal to the Tax Court of Canada within 90 days of the Notice of Confirmation. Tax Court handles both income tax and GST/HST appeals. The informal procedure is available for GST/HST amounts of $50,000 or less. One important difference from income tax: for HST disputes, interest and penalties under the Excise Tax Act follow their own rates and calculation rules — review your notice carefully to understand all amounts at issue.
Key takeaways
- HST/GST disputes are governed by the Excise Tax Act and follow the same 90-day objection deadline.
- File a Notice of Objection within 90 days of the GST/HST assessment with reasons and supporting documents.
- Tax Court's informal procedure is available for GST/HST amounts of $50,000 or less.
- Interest and penalty rules under the Excise Tax Act differ from income tax — review each notice separately.