When you are sent an assessment notice showing additional taxes payable, review it carefully; your arithmetic may have been wrong or you may have claimed a deduction to which you weren't entitled; on the flipside, the Canada Revenue Agency (CRA) may have incorrectly denied a deduction to which you were entitled.
If your return was prepared for you, advise the preparer of any changes, upward or downward.
If you prepared your own return and don't understand the information on your notice, contact your local tax services office immediately for a full explanation.
If the assessment is not in your favour and you aren't satisfied with the CRA's explanation, you may want to consult a professional advisor and consider filing a Notice of Objection with the CRA to ensure that your rights are protected. Keep in mind individuals have until the later of (i) one year after the taxpayer's filing due date for the year in question, or (ii) 90 days after the day of mailing the Notice of Assessment to file the objection.
Keep your Notice of Assessment to assist in filing your tax return next year as there may be important information on it, such as RRSP deduction limits, unused RRSP contributions, Home Buyers' Plan and Lifelong Learning Plan repayment requirements, taxable refund interest, or losses available for carry forward.
Information for Tax Tips is provided as a public service by the Chartered Accountants of British Columbia.