How to File an Objection with the CRA (T400A)

What Is a Notice of Objection?

A Notice of Objection is a formal document that you file with the Canada Revenue Agency (CRA) when you disagree with a tax assessment or reassessment. It is the first step in the formal dispute resolution process for income tax matters in Canada. Filing an objection triggers a review by the CRA's Appeals Division, which operates independently from the team that originally assessed your return.

The Notice of Objection process applies to assessments under the Income Tax Act, the Excise Tax Act (GST/HST), and several other federal tax statutes. For income tax purposes, the objection is filed using Form T400A, officially titled "Objection - Income Tax Act." This guide focuses on the income tax objection process, though similar processes exist for other types of taxes.

When Should You File an Objection?

You should consider filing a Notice of Objection if:

• The CRA disallowed a deduction or credit you claimed. For example, if the CRA denied your claim for moving expenses, childcare expenses, or a Disability Tax Credit.
• The CRA added income you believe is not taxable. For example, if the CRA included an amount in your income that you believe is exempt or was reported in error.
• The CRA applied penalties you believe are unjustified. If you received a late-filing penalty or a gross negligence penalty that you think is unwarranted.
• The CRA reassessed a prior-year return. If you receive a reassessment that changes your tax payable for a previous year, you can object to the changes.
• You disagree with the CRA's interpretation of the law. Tax law can be complex, and there may be genuine disagreements about how provisions apply to your situation.

It is important to distinguish between situations that require an objection and those that can be resolved through simpler means. For straightforward errors, such as a data entry mistake or a missing slip, you can usually resolve the issue by calling the CRA or filing a T1 Adjustment Request. An objection is for substantive disagreements about how the law applies to your situation.

Deadline for Filing

You must file your Notice of Objection within 90 days of the date on your Notice of Assessment or Notice of Reassessment. This date is printed on the notice itself. If you miss the 90-day deadline, you may apply for an extension of time, but the application must be made within one year after the original deadline. The CRA has discretion to grant the extension if you can demonstrate that you intended to object within the original time limit and that it is just and equitable to grant the extension.

Missing the deadline entirely (beyond the one-year extension period) means you lose your right to object, and the assessment becomes final. This makes it critical to review every Notice of Assessment or Reassessment you receive from the CRA promptly.

How to File Form T400A

Step 1: Review Your Assessment

Carefully review your Notice of Assessment or Reassessment to understand exactly what the CRA changed and why. The notice will include explanations of adjustments, references to specific lines on your return, and the amounts involved. If you need more detail, you can request the CRA's working papers through your CRA My Account or by calling the CRA.

Step 2: Identify the Issues

Clearly identify the specific items you are disputing. You do not need to object to the entire assessment; you can object to specific adjustments while accepting others. For each issue, determine why you disagree with the CRA's position. Gather supporting documents, such as receipts, contracts, letters, or legal opinions, that support your position.

Step 3: Complete Form T400A

Obtain Form T400A from the CRA website. The form requires:

• Your personal information (name, SIN, address)
• The tax year(s) you are objecting to
• The date of the assessment or reassessment you are objecting to
• A clear description of each issue you are disputing
• The reasons for your objection and the facts you rely on
• The relief you are requesting

The description of your issues and reasons is the most important part of the form. Be specific, factual, and organized. For each issue, explain what the CRA assessed, what you believe is correct, and why. Reference specific sections of the Income Tax Act if you can, though this is not required.

Step 4: Submit the Objection

You can submit your Notice of Objection in several ways:

• Online through CRA My Account. This is the fastest method. Log in, navigate to the "Register a formal dispute" section, and follow the prompts.
• By mail. Send Form T400A to the Chief of Appeals at your local tax services office.
• By fax. Fax the completed form to the Appeals Intake Centre, using the fax number provided on the CRA website for your region.

What Happens After You File

Acknowledgement

After receiving your objection, the CRA will send you an acknowledgement letter confirming that your objection has been received and is being processed. This letter will include the name and contact information of the Appeals officer assigned to your case.

Review by the Appeals Division

Your objection is reviewed by the CRA's Appeals Division, which operates independently from the audit or assessment team that made the original decision. The Appeals officer will review your objection, the CRA's position, and any supporting documents. They may contact you to discuss the issues, request additional information, or propose a resolution.

Resolution

The Appeals Division will issue a decision in the form of a Notice of Confirmation (if the original assessment is upheld), a Notice of Reassessment (if the assessment is changed in your favour, partially or fully), or a letter vacating the assessment. The review process can take anywhere from a few months to over a year, depending on the complexity of the case and the CRA's workload.

Collection During the Objection

For income tax objections filed by individuals, the CRA generally does not take collection action on the disputed amounts while the objection is being reviewed. However, interest continues to accrue on any unpaid balance. For corporations, the CRA may require payment of 50% of the disputed amount during the objection process. If you are concerned about collection action, discuss this with the Appeals officer assigned to your case.

If the Objection Is Unsuccessful

If the CRA confirms the original assessment (or makes only partial changes that you still disagree with), you have the right to appeal to the Tax Court of Canada. The Tax Court is an independent judicial body that hears tax disputes. You must file your appeal within 90 days of the CRA's decision on your objection.

There are two types of proceedings in the Tax Court:

• Informal Procedure. For disputes involving less than $25,000 in federal tax (or $50,000 in losses), you can use the informal procedure, which is simpler, faster, and less expensive. You do not need a lawyer, though having one can be helpful.
• General Procedure. For larger amounts, the general procedure applies. This is a more formal court process that typically requires legal representation.

Tips for a Successful Objection

• Be thorough and organized. Present your case clearly and include all relevant documents. Disorganized or incomplete objections take longer to resolve and are less persuasive.
• Respond promptly to CRA requests. If the Appeals officer asks for additional information, provide it as quickly as possible. Delays in responding can prolong the process.
• Be professional. The Appeals officer is an independent reviewer, not the person who made the original decision. Treat the process as an opportunity to present your case, not as a confrontation.
• Consider professional help. For complex disputes or large amounts, consider engaging a tax professional or tax lawyer. Our guide to finding an accountant can help you locate a qualified professional.
• Keep records of everything. Maintain copies of all correspondence with the CRA, including your objection, the CRA's responses, and any supporting documents you submit.

Common Objection Scenarios

Disallowed Moving Expenses

The CRA sometimes disallows moving expense claims if it determines that the move does not qualify under the rules. If you believe your move meets the requirements (such as moving at least 40 km closer to a new work or school location), you can object with supporting documentation. See our guide to claiming moving expenses for more details on eligibility.

Denied Tax Credits

If the CRA denies a tax credit, such as the Disability Tax Credit, medical expenses, or spousal transfer amounts, and you believe you meet the criteria, an objection is the appropriate next step. Include medical reports, receipts, and any other evidence that supports your claim.

Reassessment After Audit

If the CRA audits your return and reassesses additional income or disallows deductions, you can object to the reassessment. This is common for self-employed individuals, rental property owners, and those with complex investment situations.

Objection vs. Adjustment Request

It is important to understand the difference between a Notice of Objection and a T1 Adjustment Request. An adjustment request (Form T1-ADJ or through CRA My Account "Change my return") is used to correct simple errors or to add information you forgot to include on your original return. It is not a formal dispute mechanism. An objection, on the other hand, is a formal legal process used when you disagree with the CRA's assessment.

If you simply need to add a receipt or correct a number, use an adjustment request first. If the CRA denies your adjustment or if the issue is a disagreement about interpretation, then file an objection.

Getting Help with Your Objection

Several resources are available to help you with your objection:

• The CRA's Objections page provides detailed instructions and the form.
• Tax professionals, including accountants and tax lawyers, can represent you throughout the objection and appeal process.
• Legal aid organizations in some provinces offer free tax dispute assistance for low-income individuals.
• The WelcomeAide AI Navigator can help point newcomers to relevant resources.

Final Thoughts

Filing a Notice of Objection is your right as a Canadian taxpayer, and it is an important mechanism for ensuring that the CRA's assessments are fair and accurate. If you disagree with your assessment, do not ignore it. Review the notice carefully, gather your supporting documents, and file your objection within the 90-day deadline using Form T400A. The CRA's Appeals Division provides an independent review, and if that does not resolve the issue, the Tax Court of Canada is available as the next step. Stay organized, be thorough, and seek professional help if the amounts or issues are significant.

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