Protocol - Between the Appeals Branch and Collections and Verification Branch (CVB)

You are entitled to a fair treatment in all your dealings with the Canada Revenue Agency (CRA). This includes the right to a formal review of a factual assessment(s) (assessments under subsection 152(7)) . To ensure that tax issues, with all supporting information are correctly addressed at the appeals stage, a protocol has been signed between the Appeals Branch and the Collections and Verification Branch (CVB).

The purpose of this protocol is to set out the terms of the agreement between the Appeals Branch and the Collections and Verification Branch (CVB) for T1 and T2 tax objections filed in response to assessments under subsection 152(7).

This protocol may be applied to the majority of objection cases related to T1 and T2 , with the exception of some cases involving:

• T3 return;
• large corporation T2 factual assessment;
• an adjustment (e.g.: examined by Audit) after the assessment under section 152(7);
• non resident and bankruptcy/insolvency/proposals;
• Statute-barred years

In those instances, the Appeals Officer will address the objection based on normal procedures.

Objection case processing

To ensure fair treatment of taxpayers, when a Notice of Objection is received as a result of a factual assessment, it should be handled through the same process as when taxpayers file amended returns instead of an objection.

The Appeals Officer ensures all supporting documents are provided with their request. If not, the Appeals Officer will issue a letter to the taxpayer requesting all needed documents.

Once received, the Appeals Officer proceeds with a referral to the Collections and Verification Branch (CVB). CVB will review the tax returns; request additional documentation from the taxpayer as needed and provide recommendations to Appeals on the case. The Appeals Officer then reviews the factual assessment and makes the decision to accept, partially accept or reject CVB’s recommendation and finalize the objection case accordingly.

To keep the process fair and impartial, Appeals will keep taxpayers informed of any discussions with CVB during the course of the objection and appeals process.

Timeframes on Referrals to Collections and Verification Branch (CVB)

Collections and Verification Branch (CVB) ensures that Appeals referral requests are treated as a priority workload, and provides recommendations to the Appeals Officer within 45 business days.

If a recommendation is not received within a reasonable timeframe, the Appeals Officer will follow up every 30 days with CVB. Unforeseen delays will be handled through discussions between Appeals and Audit Management.

Importance of providing all information when submitting a Notice of Objection

In order to circumvent a prolonged review of tax issues, it is encouraged that supporting information and documentation be submitted as requested, at the earliest stage of the compliance process.