The CRA’s Notice of Assessment: Everything You Need to Know

May 13, 2022 | Written by: Sohail Afzal

The CRA's Notice of Assessment: Everything You Need to Know

If you’re like most Canadians, you probably receive a Notice of Assessment (NOA) from the Canada Revenue Agency (CRA) at some point during the year. The NOA is essentially the CRA’s way of telling you how much tax they believe you owe, and it can be quite confusing to understand if you’re not familiar with it. In this blog post, we will explain everything you need to know about the CRA’s Notice of Assessment. We’ll cover what it is, how to read it, when you get your refund, and what to do if you disagree with the assessment.

What is a Notice of Assessment?

A Notice of Assessment is a statement from the CRA that shows the amount of tax you owe for a particular tax year. It also includes any benefits or credits you are entitled to receive. The NOA is generated after the CRA has processed your tax return, and it will either confirm that you have paid the correct amount of tax or tell you if you owe money to the CRA.

How Do You Get the NOA?

You should receive the NOA in the mail, typically a few weeks after you have filed your tax return. If you have an accounting firm or tax firm prepare your taxes, they will usually also receive a copy of the NOA.

How to understand the NOA?

When you receive your Notice of Assessment, the first thing you should do is check that all of your personal information is correct. This includes your name, address, and date of birth. If any of this information is incorrect, please immediately contact the CRA.

The second thing you should do is check the “assessment period” on your NOA. This is the period that is being taxed, and it should match the tax year that you filed your return for. If it does not, don’t hesitate to get in touch with the CRA.

Once you have confirmed that all of your personal information is correct, take a look at the “total tax payable” amount on your NOA. This is the amount of money you owe to the CRA, and it includes any taxes, interest, or penalties that may be owing. If this amount is zero, then congratulations- you don’t owe anything! However, if you do owe money to the CRA, you will need to make a payment as soon as possible.

The next thing to look at is your NOA’s “amount owing.”. This is the amount of money you need to pay to the CRA. It includes any taxes, interest, or penalties that may be owing. If this amount is zero, then congratulations- you don’t owe anything! However, if you do owe money to the CRA, you will need to make a payment as soon as possible.

Finally, take a look at your NOA’s “refund” or “credit balance” section. This is the amount of money that the CRA owes YOU! Unfortunately, if this amount is zero, you are not entitled to a refund for that tax year. However, if there is a positive amount in this section, you will receive a refund from the CRA.

When do you get your refund?

If you are entitled to a refund, the CRA will usually issue it within eight weeks of receiving your tax return. However, if you have filed your return electronically, the CRA may issue your refund within two weeks. If you have not received your refund within eight weeks, please contact the CRA.

What to do if you disagree with the NOA?

If you disagree with any part of your Notice of Assessment. You have the right to file an objection with the CRA. You must file your objection within 90 days of receiving your NOA, and you must include all relevant information and documentation to support your case. If you need help preparing your objection, you can contact a professional accounting and tax firm.

Conclusion

We hope this blog post has helped clear up any confusion you may have had about the CRA’s Notice of Assessment. If you have any further questions, please don’t hesitate to contact us. We would be more than happy to help!

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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