CRA compliance
CRA Notice of Assessment or Reassessment for a Corporation: What to Review Next
A step by step guide to comparing a corporate notice of assessment or reassessment with the filed T2, understanding adjustments and preserving deadlines.
Sources checked 6 min read
Start with a line by line comparison
After the CRA processes a T2 return, it sends a notice of assessment. A reassessment may follow when the CRA or the corporation changes a previously assessed return. Begin with the notice date, tax year, account number, assessed income, taxable income, tax, credits, instalments, interest, penalties, and carry forward balances. Compare each item with the final filed copy rather than a draft or bookkeeping report.
Read the explanation section and any separate correspondence. Some differences are caused by arithmetic or processing adjustments, while others reflect a different interpretation of evidence or law. A payment can also be recorded against a different period or program account. Naming the type of difference makes the next step more precise.
| Item to compare | Evidence to retrieve | Question to answer |
|---|---|---|
| Income and deductions | Filed T2, schedules, GIFI, general ledger, invoices, and calculations | Which reported amount changed, and what explanation did CRA give? |
| Credits and carry forwards | Prior notices, continuity schedules, elections, and supporting forms | Was an amount denied, expired, applied, or calculated differently? |
| Payments and instalments | Bank confirmations, CRA account transactions, and payment instructions | Was every payment received and allocated to the intended account and period? |
| Interest and penalties | Due date calendar, filing confirmations, payment dates, and CRA explanation | Is the charge based on timing, an assessed balance, or another compliance issue? |
Key points
- Compare the notice with the exact T2 return, schedules, payment records, and prior correspondence before deciding that the result is correct or incorrect.
- Separate processing differences, denied claims, changed carry forward balances, interest, penalties, and payment allocation issues because each may require a different response.
- Contacting the CRA for an explanation is not the same as filing a formal objection and does not replace an applicable objection deadline.
- Keep a dated issue log, copies of every submission, confirmation numbers, and the evidence supporting each disputed amount.
Choose clarification, adjustment, or objection carefully
If the difference is unclear, contact the CRA using verified contact information and ask for an explanation. If the corporation made an error or has additional information, a T2 adjustment request may be appropriate. If the corporation disagrees with an assessment or reassessment, the CRA describes a formal notice of objection process. These routes serve different purposes and can have different documentation and time requirements.
CRA guidance currently states that a corporation generally has 90 days from the date of the notice of assessment or reassessment to file an objection. Confirm the current rule and the exact deadline for the notice in hand. An informal conversation, document submission, or adjustment request should not be assumed to extend a formal deadline.
- Record the notice date and calculate the response deadline immediately.
- Identify every disputed line, the requested outcome, and the facts supporting it.
- Use copies of original records and retain proof of delivery or electronic confirmation.
- Keep payment and dispute decisions separate; interest may continue while an amount remains unpaid.
Maintain one controlled response file
Create an issue log with the tax year, notice date, disputed items, amounts, responsible person, CRA contact, documents sent, confirmation numbers, and next date. Store the filed return, notices, working papers, correspondence, and payment evidence together. This prevents a later call or submission from relying on a different version of the facts.
A notice may involve technical tax or legal questions beyond routine filing. Obtain advice suited to the issue, especially before an objection deadline or material payment decision. This guide is general information and cannot determine whether a specific assessment is correct.
Can HBT Accounting help compare a notice with the filed corporate return?
HBT Accounting can help reconcile the notice to the return and accounting records, organize the open questions, and identify when more specialized dispute or legal advice may be appropriate.
Review HBT Accounting's corporate tax serviceOfficial sources
Call or email and we will tell you which records we need and what the work costs, in writing, before anything starts.
Important. This article provides general educational information, not legal or tax advice for a specific business. Rules, administrative policies, rates and deadlines can change. Confirm your facts and current obligations with the responsible government agency and a qualified adviser.