We have now all dutifully filed our tax returns and about now we will be getting our Notices of Assessment from the CRA.
BUT what if you get a scary Notice of Reassessment and a bill? First, take a deep breath. Second, don’t immediately call and go on a rant with your accountant.
What it means is simply that the CRA compares the information that you provided on your return with the information submitted by third parties (such as your employer, bank, mutual fund company or investment deal). If there is a discrepancy, they recalculate based their information and send you the bill for any taxes and interest owing. Keep in mind this is contestable. Most people don’t know this and just write the cheque for fear of the ever scarier CRA audit.
The thing to do is contact your accountant and send them a copy of the Notice. They will determine from the CRA what exactly is missing or what more information is needed. If you can submit these things to the satisfaction of the CRA then it can be corrected, and the taxes and interest owing could be reduced or potentially reversed.
The CRA truly is there to help. In any of our dealings with them they have been nothing but helpful. They are not the boogie man out to get you.