Late-Filed Objection Applications: When the CRA Allows Them in Canada

You received a notice of assessment, thought about disputing it, and then the objection deadline passed. Illness, a move, a misunderstanding or simply bad timing can all cause this. It is not necessarily the end of the road.

The Income Tax Act has a process for late objections. It is strict, and it has a hard outer limit, so the timing of your next step matters. This article explains how it works in general terms.

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

What an extension of time application is

If no notice of objection was made in time, you may apply to the Minister for an extension of time to object. The application must give the reasons for the delay and be addressed to the Chief of Appeals, with a copy of the notice of objection. The Minister must consider it promptly and tell you the result in writing.

If the Minister grants the extension, the objection is treated as served on the day the Minister's decision is sent to you. The Minister may also accept an application that was not filed exactly as required.

Know whether you are actually late

Before applying, check the deadline. For an individual who is not a trust, and for a graduated rate estate, the deadline is the later of one year after the filing-due date for the year and 90 days after the notice of assessment was sent. Other taxpayers, such as corporations, have 90 days after the notice was sent. The time runs from the day the notice was sent, not the day you received it.

Some objections have only a 90-day limit even for individuals, including loss determinations and RRSP or TFSA over-contribution assessments. Some items cannot be objected to at all, such as a statement of account or an auditor's proposal letter. A late-filed or premature objection may also be invalid.

The one-year limit and the criteria

An extension can be granted only if the application is made within one year after the objection deadline expired. If more than one year has passed, no extension can be granted under these rules. The CRA advises applying as soon as possible, and no later than one year after the date you had to file the objection.

Within that year, you must also meet the following conditions:

• You were unable to act, or had a bona fide (genuine) intention to object, within the time allowed.
• Granting the extension is just and equitable.
• You applied as soon as circumstances permitted.

Whether your reasons meet these tests depends on your facts, so explain them clearly and honestly.

What to include and where to send it

• A clear explanation of the reasons for the delay.
• A copy of the notice of objection.
• The notice of assessment date, tax year and your account number or SIN, along with your name, address and daytime phone number.
• The facts and reasons for your objection, with supporting documents.
• Details of your representative, if you have one.
• Your signature and the date.

Address the application to the Chief of Appeals. Anything you can show about why you could not act earlier, or that you meant to object, is worth gathering.

If the Minister says no, and what to do next

If the Minister refuses the extension, or 90 days pass without a decision, you may apply to the Tax Court of Canada. That application must be made within 90 days after the Minister's decision notice was mailed. The Court may grant or dismiss it and may set conditions. The one-year outer limit still applies, so the Court cannot grant an extension if more than a year has passed since the deadline.

If you are no longer sure of your options, act quickly:

• Find the notice of assessment and work out the deadline that applied to you.
• Count one year from that deadline and note the date.
• Write down why you were late and collect supporting records.
• Consider speaking with a lawyer or accountant before filing, especially if the date is close.

Separately, you may still be able to ask for relief on penalties or interest, which is a different request from an objection. Cancelling or waiving them can be considered up to ten calendar years after the end of the year concerned.

Frequently asked questions