Can I Withdraw a Notice of Objection With the CRA After Filing It in Canada?
This answer covers Canadian federal tax law, which applies in every province.
You may not be able to simply withdraw a notice of objection. The CRA's internal audit manual says the Income Tax Act has no provision allowing a taxpayer or representative to withdraw an objection, so the Minister must confirm the assessment.
Once an objection is served, the Minister must reconsider the assessment and then vacate, confirm, vary or reassess it. If the CRA confirms it, you could then appeal to the Tax Court within 90 days of the confirmation. Interest keeps accruing on disputed income tax during an objection, and paying all or part of the disputed amount stops further interest on what you paid.
If you have settled the issue or changed your mind, what happens next depends on your situation, and any later correspondence should quote your case number. If an objection deadline is ever missed, an extension application must be made within one year after the deadline expired. Because the effect on your assessment, interest and appeal rights depends on your facts, speak with a lawyer or accountant before you act.
Key takeaways
- The CRA's audit manual says the Income Tax Act has no provision allowing a taxpayer to withdraw an objection.
- In that case the Minister must confirm the assessment.
- Interest keeps accruing on disputed income tax, and paying the disputed amount stops further interest on what you paid.
- If an objection deadline is missed, an extension can be granted only if the application is made within one year after the deadline expired.