Appealing to the Tax Court if the CRA Ignores Your Objection in Canada

You filed a notice of objection and months have gone by with no answer. It is natural to wonder whether you must keep waiting for the CRA to finish its review.

In many cases you do not. The Income Tax Act gives you a route to the Tax Court of Canada even without a decision, and this article explains how it works and what to watch for.

This article covers Canadian federal tax law, which applies in every province.

The usual route and the no-answer route

Normally, after you serve a notice of objection, you may appeal to the Tax Court of Canada to have the assessment vacated or varied once the Minister has confirmed the assessment or reassessed. The Minister must reconsider the assessment with all due dispatch and then notify you in writing.

If the Minister has not notified you of a decision, you may appeal once 90 days have elapsed after service of the notice of objection. You need not wait for CRA Appeals to decide. For GST/HST objections the wait is 180 days.

The deadline when the CRA does answer

If the CRA does respond, the clock changes. The deadline is 90 days from the day the notice was sent saying the Minister confirmed the assessment or reassessed. The CRA says the Court must receive your notice of appeal within that 90 days.

The CRA lists ways to file: delivery, mail, fax or the Court's electronic filing. Because the Court must receive the notice in time, leave room for delivery.

Exceptions to be aware of

• You cannot appeal an issue on which you waived in writing the right to object or appeal.
• A large corporation's appeal is limited to issues properly raised in its notice of objection.
• Appeals of the Minister of the Environment's decision on the fair market value of an ecological gift have their own 90-day period running from the certificate.
• Where the Minister assesses to reflect certain matters already determined, the objection must be made within 90 days and is limited to reasons not already dealt with.

If you miss the deadline

You may apply to the Tax Court for an order extending the time to appeal, and the Court may impose terms it considers just. The application sets out the reasons for the delay and is filed with three copies of the application and three copies of the notice of appeal.

No extension can be ordered unless the application is made within one year after the 90-day period expires. You must also show that within the 90 days you were unable to act or instruct someone to act, or had a genuine intention to appeal, that it is just and equitable to grant the application, that you applied as soon as circumstances permitted, and that there are reasonable grounds for the appeal.

A late notice of objection is different. You first apply to the Minister (Chief of Appeals) within one year after the objection deadline.

What to do next

• Find the date your notice of objection was served and count 90 days from it.
• Check whether the CRA has sent any confirmation or reassessment, and note its date.
• Confirm whether your dispute is income tax or GST/HST, since the waiting periods differ.
• Speak with a tax lawyer or accountant before filing, especially if a deadline is close or has passed.

Frequently asked questions