Notice of Determination vs. Assessment: Can You Object in Canada?

You open your mail or My Account and find a notice of determination instead of a notice of assessment. It may deal with a loss, a carryforward or a benefit amount, and you disagree with it. The first question is whether the CRA's decision is something you can formally challenge.

The short answer is that many determinations carry the same objection rights as assessments, but not every CRA document does. This article explains the difference, what can and cannot be objected to, and the deadlines to watch.

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

Assessment and determination: what is the difference?

An assessment is the CRA's calculation of your tax, interest and penalties after it examines a return. The CRA sends a notice of assessment to the person who filed it. A determination is a decision about an amount or status that is not itself a tax calculation, such as an unreported loss, a credit or a benefit.

The Income Tax Act requires the Minister to determine certain unreported losses at your request, including non-capital, net capital, restricted farm, farm and limited partnership losses. The assessment provisions, including objection rights, apply to these determinations.

When you can object to a determination

The CRA says you can file an objection against a notice of assessment, reassessment, determination or redetermination. The objection and appeal rights for assessments also apply to determinations such as the Canada child benefit, the GST/HST credit, the disability tax credit and loss determinations.

An assessment is treated as valid and binding despite errors, subject to objection, appeal and reassessment. That is why an objection is the formal way to challenge a decision you believe is wrong.

If you are in a loss position, you cannot object until a notice of loss determination is issued. You can request one from your tax services office or tax centre.

What you cannot object to

Not every CRA document is an assessment or determination. The CRA lists examples that cannot be objected to, and an objection filed too early or too late may be invalid.

• Statements of account and auditors' proposal letters.
• RRSP or TFSA room statements, carryforward balances and Home Buyers' Plan balances.
• Refund interest, tax deducted at source, OAS recovery tax, set-offs, pension adjustments and nil assessments.
• Any issue on which you waived your right of objection in writing.
• A reassessment issued under the Taxpayer Relief provisions.

If your document is on that list, the better route may be asking the CRA to correct the underlying return or record. A lawyer or accountant can tell you which path fits.

Deadlines for objecting

The 90 days run from the day the notice was sent, not the day you received it. Individuals (other than trusts) and graduated rate estates have until the later of one year after the return's filing-due date and 90 days after the notice was sent. Corporations have 90 days after the notice was sent.

There is an important exception. Loss determinations and RRSP or TFSA over-contribution assessments have only a 90-day limit, even for individuals.

What to do next

• Find the notice date and the type of notice on the document.
• Check whether the document is on the list of items that cannot be objected to.
• Confirm which deadline applies to you, especially if the notice is about a loss.
• Gather the facts and supporting documents behind your disagreement.
• Include your name, address, phone number, the notice date, tax year, account number, and sign and date the objection.
• Speak with a lawyer or accountant if you are near the deadline or unsure the notice can be objected to.

If you miss the deadline, an extension may be possible, but only if you apply within one year after the deadline expired.

Frequently asked questions