Can You Appeal to the Tax Court of Canada After an Objection?

If the CRA has confirmed your assessment after an objection, you are not necessarily out of options. The Tax Court of Canada can hear your appeal, but strict time limits apply and the choice of procedure affects cost and risk.

This article explains when you can appeal, the deadline, how the informal and general procedures differ, and what to do next. A lawyer can confirm how these rules apply to your case.

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

When you can appeal

You must first serve a notice of objection. You may then appeal to the Tax Court of Canada once the Minister confirms or reassesses, or 90 days pass with no decision. After an objection, the Minister must reconsider the assessment and notify you in writing.

If a reassessment follows your objection, you can appeal without serving a new notice of objection. A large corporation can appeal only the issues specified in its notice of objection.

The objection itself has its own deadline. An individual other than a trust must serve a notice of objection by the later of one year after the filing-due date and 90 days after the notice of assessment was sent, while other taxpayers have 90 days after the notice was sent. A large corporation's notice must describe each issue, the relief sought and the facts and reasons.

The 90-day deadline

The appeal must be filed within 90 days of the notice of confirmation or reassessment. Treat this as firm. Note the date on the notice as soon as it arrives.

A decision on taxpayer relief is different. It has no right of objection or appeal, but you can ask for a second administrative review by a different official, or apply to the Federal Court for judicial review within 30 days of notice of the decision, and the Court may extend that period.

Informal versus general procedure

Electing to limit the amount to fit the informal procedure means giving up any claim above those figures, so it is a decision worth discussing with a lawyer before filing.

Costs, interest and collection while you appeal

If you file an appeal, collection of the disputed amount is barred until the Tax Court's decision is mailed or the appeal is discontinued. You can avoid paying personal tax amounts in dispute until an impartial review, but interest still accrues and undisputed amounts must be paid. The Taxpayer Bill of Rights is a set of principles rather than directly enforceable rights.

Earlier in the process, for most assessments the CRA may not start court proceedings, certify the debt or take listed collection steps until 90 days after the notice of assessment was sent, and once an objection is filed collection of the disputed amount is barred until 90 days after notice of the Minister's confirmation or variation. These restrictions do not apply to amounts required to be withheld and remitted, such as payroll source deductions, or to related penalties and interest, and for a large corporation (taxable capital over $10 million) the Minister may collect half of an assessed amount within 90 days.

Separately, a requirement to pay under s. 224(1) lets the Minister require a person who owes or will within one year owe money to a tax debtor, such as an employer or bank, to pay it to the Receiver General.

The prescribed rate on overdue income tax for 1 October to 31 December 2026 is 7%, and rates are set quarterly. A lengthy appeal can therefore add real interest if you lose.

• Informal procedure: lower costs risk, but capped amounts.
• General procedure: no cap on the amount, but exposure to part of the other side's legal costs.
• In an appeal about a penalty under s. 163, the burden of establishing the facts justifying the penalty is on the Minister.

What to do next

• Record the date of the notice of confirmation or reassessment and your 90-day deadline.
• Add up the amounts and any loss in issue to see which procedure fits.
• Weigh costs risk against the amount at stake.
• Keep paying undisputed amounts.
• Speak to a lawyer or accountant before filing, and consider a representative of your choice.

Frequently asked questions