What to Do If You Make a Mistake on Your Tax Return in Canada

February 26, 2018 | Written by: Sohail Afzal

HST Filings Toronto

Completing the income tax filing process is always an achievement for many taxpayers. But what happens if you just realize that you made a mistake when filing only after you hit the send button? Whether you failed to include some receipts or used the wrong dates for medical deductions when filing a T1 return, there are so many common mistakes taxpayers make when filing. There’s really no reason to panic if you make a mistake when filing. There’s a procedure that you can follow to fix any mistake you’ve made after filing.

Can You Make Amendments Immediately?

You can only change your tax return after receiving the Notice of Assessment. Once you receive this notice, you can go ahead and request for changes to your income tax return. Any changes on a T1 tax return can be requested online or by mail. You will need to complete a T1 adjustment request form and send it to your tax center or simply write a letter then sign it and send to your tax center requesting for adjustments. Make sure you attach all supporting documents for the changes you are requesting if you make this request via email.

When Can You Request for Changes

You can request the CRA to make changes to any of the last 9 years. You may also request for changes to your tax return for the current year. For each year you would like changes to be made, you need to prepare separate forms of letters and send them separately.

The Review

Once the letter or form is received by the CRA, it will be reviewed and they will let you know whether the changes will be allowed or not. This is done in form of a notice of assessment which will provide details of the changes made to your income tax return or information why they did not allow the changes you had earlier requested. For T1 returns, expect to get feedback from the CRA 2 weeks after requesting the changes if done online or 8 weeks if the request was sent via mail. The changes can take longer if the CRA needs to verify certain information or documentation.

Changing Your T2 Tax Returns

You can also make changes to corporate income tax returns. The process is almost the same. You will wait to receive a Notice of Assessment and then request for changes electronically or by mail. However, corporate tax return changes can only be requested within 3 years but extensions are possible. The CRA will review your request and after that, they will send you a notice of assessment showing changes made or reason for decline.

The reassessment of corporate T2 tax returns can take slightly longer. The CRA doesn’t give a definite timeline for reassessments of corporate T2 tax returns. Sometimes they simply need more review or documentation to be provided before they can approve any changes. Make sure you start the process early on to save time.

Sohail Afzal CPA Toronto

Sohail Afzal, CPA, CMA, MBA

Sohail Afzal, (CPA, CMA, MBA) is the founder & CEO of GTA Accounting Professional Corporation. He is a highly experienced Chartered Professional Accountant and businessman himself and understands the challenges that many businesses face when it comes to cash flow management. As an experienced business consultant & tax advisor, he is helping companies grow by providing the technical, financial, and contractual information necessary for strategic decision-making.

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