The first thing to do when receiving a notice of reassessment is to understand what it is about. If need be, you can call the Canada Revenue Agency to ask for an explanation.
The next thing is to ensure that the CRA is not statute-barred (or, in other words, is within the time limit to reassess). The CRA generally makes sure that it is not statute-barred, but it doesn’t hurt to double-check, especially in borderline cases.
If the CRA is not statute-barred, you are generally left with two choices. You can either agree with the reassessment or disagree. If you disagree, you must file a notice of objection stating your reasons. It is a good idea to consult with a tax lawyer to see if you have legal grounds to support your position. Otherwise, you may just be delaying the inevitable.
Last updated: November 3, 2018