- An application for an extension can be granted only if it is made within one year after the objection deadline expired.
- You must show you could not act or genuinely intended to object, that an extension is just and equitable, and that you applied as soon as you could.
- If the Minister refuses or does not decide within 90 days, you can apply to the Tax Court of Canada within 90 days of the decision notice being mailed.
If you realize the deadline to object to a CRA assessment has passed, it is not necessarily the end of the road. The Income Tax Act has a process that lets you ask for more time, but it has strict conditions and a hard outer limit.
This article explains the deadline you may have missed, how the extension application works, and what your options are if it is refused.
This article covers Canadian federal tax law, which applies in every province.
First, confirm that you are actually late
Many people think they are late when they are not. An individual (other than a trust) or a graduated rate estate has until the later of one year after the filing-due date for the year and 90 days after the notice of assessment was sent. Corporations and most other taxpayers have 90 days after the notice was sent.
The 90 days run from the day the notice was sent, not the day it was received. Some matters carry only a 90-day limit even for individuals, including loss determinations and RRSP or TFSA over-contribution assessments.
A later reassessment can also give you new objection rights over the reassessed items. Check the dates on every notice you have before assuming the window has closed.
How the extension application works
If no objection was made in time, you may apply to the Minister for an extension. 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 notify you in writing.
The Minister may accept an application that was not filed as required. If an extension is granted, the objection is deemed served on the day the Minister's decision is sent to you.
In practice, this means you prepare two things together: a full explanation of why you were late, and the objection itself so the Minister can see what you want reviewed.
The one-year outer limit and the tests you must meet
An extension can be granted only if the application is made within one year after the objection deadline expired. If more than a year has passed, no extension can be granted by the Minister or by the Tax Court. CRA says to apply 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 show the following:
- You were unable to act, or had a genuine (bona fide) intention to object.
- Granting the extension is just and equitable.
- You applied as soon as circumstances permitted.
Whether your reasons are strong enough depends on your facts, such as illness, mail problems or misunderstanding the deadline. A lawyer or accountant can help you present them clearly.
If the Minister says no, or does not answer
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.
| Step | Who decides | Time limit |
|---|---|---|
| Ask for an extension | The Minister, through the Chief of Appeals | Within one year after the objection deadline |
| Challenge a refusal or no answer | Tax Court of Canada | Within 90 days after the decision notice was mailed |
Other routes if the window has closed
An individual (other than a trust) or a graduated rate estate may ask for a reassessment to claim a refund or reduction up to 10 calendar years after the end of the taxation year. This is a request for adjustment, not an objection.
Separately, the Minister may waive or cancel all or part of a penalty or interest for a taxation year, or on an application made, up to ten calendar years after the end of that year. That is a fairness request, not an objection.
Which route fits depends on what you are trying to change, so it is worth confirming with a lawyer or accountant.
What to do next
- Find the date on each notice of assessment or reassessment and work out your real deadline.
- Note the date the objection deadline expired and count one year from it.
- Write down why you were late, with dates and any supporting documents.
- Prepare the notice of objection to attach as a copy.
- Address the application to the Chief of Appeals.
- Get advice quickly if you are close to the one-year mark.
Frequently asked questions
Is there a time limit for asking for an extension?
Yes. The application must be made within one year after the objection deadline expired. After that, no extension can be granted under the Act.
What do I have to prove?
You must show you were unable to act or had a genuine intention to object, that granting it is just and equitable, and that you applied as soon as circumstances permitted.
Where does the application go?
It is addressed to the Chief of Appeals and must give the reasons for the delay, with a copy of the notice of objection.
What if the Minister refuses?
You may apply to the Tax Court of Canada within 90 days after the Minister's decision notice was mailed. The same option applies if 90 days pass with no decision.
Sources
- Income Tax Act, s.165 (Justice Laws) — Justice Laws (federal)
- CRA Guide P148 — canada.ca
- Income Tax Act, s.152 (Justice Laws) — Justice Laws (federal)
- Income Tax Act, s.220 (Justice Laws) — Justice Laws (federal)
- Income Tax Act, s.166.1 (Justice Laws) — Justice Laws (federal)
- Income Tax Act, s.166.2 (Justice Laws) — Justice Laws (federal)
Links go to official government, court and regulator pages. The law changes — confirm you are reading the current version.
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