Question
An assessment can create significant negative disclosure issues for a publicly traded taxpayer, notwithstanding any ultimate resolution of the issue in the taxpayer’s favour. What recourse does a taxpayer have when it feels that it is being treated unfairly by, or is not receiving a proper hearing from, a Taxation Services Office (TSO)? In particular, in what circumstances does the taxpayer have a right to elevate its concerns to head office?
Response
Taxpayers should first discuss their concerns with the official raising the assessment. If taxpayers continue to have concerns, they are encouraged to raise the issue with that official’s supervisor, and to move progressively to higher levels of management within the TSO as appropriate. If, after communicating with the higher levels of management in the TSO, taxpayers continue to have concerns, they can call officials in Headquarters. It is preferable that taxpayers try to resolve this issue with officials in the TSO first, since accountability for the assessing position with regard to the file rests with the TSO.
Proposed assessments frequently involve input from CRA experts, as appropriate. If the taxpayer requests it of the auditor, valuators will meet with the taxpayer or the taxpayers’ representatives and provide their interpretation of the facts, consider all additional information provided, and adjust their report as required. Where advice has been received from the Department of Justice, the CRA may develop an assessment that takes that advice into consideration, and therefore the CRA auditor is the most appropriate person with whom to discuss any concerns about the assessment. In exceptional circumstances, the auditor may ask a representative from the Department of Justice to assist in addressing these concerns.