CRA Guide
Learn how the CRA works and what to do about accounts, notices, reassessments, audits, debts and objections.
The short version
- The Canada Revenue Agency (CRA) administers federal tax, most provincial income tax outside Quebec, GST/HST and benefits like the Canada Child Benefit.
- Almost every CRA problem has a deadline. Find it first.
- Most letters are about one line on one return, and most are fixed by sending documents on time.
- If you disagree with an assessment, you object in writing within the deadline, usually the later of 90 days after the notice or one year after your filing due date.
- Upload any CRA letter to the free tax document analyzer to see what it wants.
What the CRA Does (and What It Doesn't)
CRA collects federal income tax and, under agreements with the provinces, the provincial personal income tax for every province and territory except Quebec. It runs GST/HST, payroll deductions and a long list of benefits. It doesn't write the tax laws; Parliament does. That distinction matters when you're arguing: CRA can be wrong about the facts of your file, but it can't waive the law because it's unfair.
It also doesn't phone you to demand gift cards. Nobody at CRA has ever wanted a gift card.
Your CRA Accounts
My Account (individuals; see how to set it up and login problems) shows your notices, slips, RRSP and TFSA room, benefit payments and balance owing. It's also where you change a return (“Change my return”), send documents (“Submit documents”) and file an objection (“Register my formal dispute”). My Business Account does the same for GST/HST, payroll and corporate accounts. If someone handles your taxes for you, authorize them there or with form AUT-01 (see our list of Canadian tax forms).
The Letters, in Order of How Worried to Be
Notice of assessment. CRA's answer to your return. Read the explanation of changes. Usually nothing to do. (Fewer surprises next year: check your return before you file.) (Not sure which one you have? The CRA letter analyzer reads it for you.)
Review letter or request for documents. CRA wants proof of a claim. Send exactly what it asks for, by its date, through Submit documents. Missing the date usually means the claim is denied. See CRA review letter and, for formal demands, CRA request for information.
Proposal letter. CRA tells you what it plans to change and gives you time to respond first. The cheapest moment to fix anything.
Notice of reassessment. CRA changed a return. If you disagree, the objection clock starts on the date of this notice. Read what to do after a CRA reassessment.
Audit letter. A deeper examination, usually of a business, rental or larger claims. Treat it seriously, organize your records, and consider a professional (see find the right tax help). How it works, step by step: CRA audit.
Collections letters. A balance is overdue. CRA can take money from your bank account, wages or other payments without going to court first. Call before the date in the letter.
Got a letter or slip you do not understand?
Upload it to the Tax Document Analyzer. It reads the CRA letter, notice or slip and tells you what it means, what the deadline is, and what to do next.
Disagreeing With CRA
- Call or write first if it's a simple error or missing paper. Many problems end there.
- Ask for a correction with Change my return or form T1-ADJ if you made the mistake.
- File a notice of objection (online or on form T400A) if CRA assessed you and you disagree. For individuals' income tax, the deadline is the later of one year after your filing due date or 90 days after the notice. The CRA objection deadline calculator gives the exact date. GST/HST objections have a strict 90 days.
- Appeal to the Tax Court of Canada if the objection doesn't go your way. This is lawyer territory for anything significant.
CRA generally can't reassess an individual's return more than three years after the original notice of assessment, unless there was misrepresentation through neglect, carelessness or wilful default, or you signed a waiver. Don't sign a waiver without understanding it.
Disagree with CRA? File the objection properly
The Objection Pack reads your notice, works out your deadline, drafts your statement of facts and fills in form T400A for you to sign.
Penalties, Interest and Relief
Interest is charged daily on overdue balances, compounded, at CRA's prescribed rate. Late filing (see the deadlines in our Canadian income tax guide) adds a penalty of 5% of the balance owing plus 1% for each full month late, up to 12 months, and more for repeat offenders. If circumstances beyond your control caused the problem (serious illness, a disaster, a CRA error), you can ask for taxpayer relief on form RC4288; it generally covers penalties and interest from the last ten calendar years. Penalties and interest caused by illness, a disaster or a CRA error can sometimes be cancelled; see taxpayer relief. Every penalty, with the numbers, is on CRA penalties and interest.
If you have income you never reported or returns you never filed, the Voluntary Disclosures Program may reduce penalties and interest, but only if CRA hasn't found you first. Get professional advice before you apply.
Owing CRA Money
CRA would rather be paid than collect. If you can't pay in full, call and propose a payment arrangement before collection action starts (more on CRA tax debt); interest still runs, so pay what you can now. Don't recognize the balance? See CRA says I owe money I don't owe; benefits being taken back are on benefit overpayments. If the debt came from a reassessment you think is wrong, get the right tax help before the objection deadline passes. For income tax under objection, CRA generally holds off collecting the disputed amount until the objection is decided. GST/HST and payroll amounts are treated more strictly. How collections works, and what to do about a garnishment or bank account freeze, is on CRA collections.
Service Problems
If CRA's service has gone wrong (long delays, no answers, poor treatment) and CRA's own feedback process didn't fix it, the Office of the Taxpayers' Ombudsperson reviews service complaints. It can't change the amount of tax you owe.
Is That Really CRA?
CRA does not demand payment by Interac e-transfer, gift card, prepaid card or cryptocurrency, does not threaten arrest, and does not contact you by text message. When in doubt, log in to My Account and check, or call CRA at a number on how to contact CRA. Never the number in the message.
CRA Questions
How long does CRA have to reassess my return?
For most individuals, three years from the date of the original notice of assessment. CRA can go back further where there was misrepresentation due to neglect, carelessness or wilful default, fraud, or when you signed a waiver.
How long do I have to object to a CRA reassessment?
For an individual's income tax, until the later of one year after your filing due date or 90 days after the date on the notice. For GST/HST, 90 days. Use our objection deadline calculator for the exact date.
Can CRA take money from my bank account?
Yes. For an overdue balance, CRA can issue a requirement to pay to your bank or employer without first going to court. Calling early to arrange payment usually prevents it.
Can I get CRA penalties and interest cancelled?
Sometimes. CRA can cancel or waive them for extraordinary circumstances, CRA errors or inability to pay, using form RC4288 or My Account, generally for the last ten calendar years.
How do I let my accountant talk to CRA for me?
Authorize them as a representative in My Account, or sign form AUT-01. You can remove the authorization at any time.
Sources: CRA, P148 Resolving your dispute; RC4288 Taxpayer Relief Request; RC199 Voluntary Disclosures Program; Office of the Taxpayers' Ombudsperson. Checked October 2026. CRA's prescribed interest rate changes quarterly; we don't quote it here so it can't go stale.
Last reviewed October 5, 2026 against CRA and Government of Canada sources. How we check our facts.