We get a lot of questions from our clients regarding CRA Notice of Assessment’s. So we thought we would explain the Notice of Assessment for better understanding of its purpose.
What is a CRA NOA (CRA Notice of assessment)?
CRA notice of assessment is processed by the Canadian Revenue Agency when you file the taxes every year. It shows your personal income, deductions and credits were claimed. It also outlines the amount of taxes one may owe/receive based on an individual’s income.
What CRA Notice of assessment explains?
It provides various aspects of information regarding a person’s tax return filing for the year. A lot of financial institutions use NOA’s to decipher an individual’s financial standing in the form of their yearly income.
The breakdown of what the NOA consists of is –
- Account Summary – Provides information of a person’s balance owing or refund based on the assessment by CRA.
- Tax Assessment Summary – It provides the main lines used to assess one’s tax return.
- Explanation of Changes – It provides an explanation for any changes and corrections made by CRA to a tax return.
- RRSP Deduction Limit – It provides information on RRSP deduction limit and how its calculated.
How to obtain a CRA Notice of assessment?
Each year after the tax return has been assessed, CRA mails out a copy of the Notice of Assessment. Additionally, one can create a profile with CRA online which allows access to Notice of Assessments for previous and current years as well as other important tax information.
Your rights if you disagree with CRA Notice of assessment /reassessment?
If an individual disagrees with CRA’s notice of assessment to the filed tax return, a formal dispute can be registered within 90 days of the assessment.
More information click here to go on CRA website