Canada functions under a self-assessment system. A self-assessment system is essentially a system where each taxpayer must assess his tax liability for the year and report the information to the government. The information is generally reported to the government through an income tax return or an information return. Checks and balances are in place to ensure that the tax reported is accurate.

There are various deadlines for filing an income tax return, depending on who the taxpayer is. Once the return has been filed, the Canada Revenue Agency must examine the return “with all due dispatch.” Taxpayers are normally informed that the CRA has received their returns by way of a notice of assessment (referred to in the Income Tax Act as a “notice of an original assessment”). The notice of an original assessment is normally sent within a few weeks from the time the return is filed.

The date on the notice of an original assessment is important because it starts the clock running for determining how much time the CRA has to review your return and reassess you.

• What is the deadline for the CRA to reassess a taxpayer?
• What to do upon receiving a notice of reassessment?
• Should a taxpayer pay the amount owing per the notice of reassessment, even if he objects?