A notice of assessment is a document issued by the tax authorities setting out the details of your tax status and providing information about your latest tax filings.
In this article, I will break down the Notice of Assessment so you know all there is to know about it!
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What Is A Notice of Assessment
A notice of assessment, also known as the NOA, is a document that is issued by Revenu Quebec or the CRA (Canada Revenue Agency) providing details about a person or entity’s tax account.
Typically, a notice of assessment will include the date and amount of your last tax return, details about your tax account, communication from the tax authorities regarding your file, or a message concerning an action that must be taken by the taxpayer.
The notice of assessment serves as a confirmation of the taxpayer’s tax filings or informs the taxpayer of an action to take to regularize their file.
Quite often, when the tax authorities assess a person’s filing, they may either confirm the tax return, request for payment, or issue a refund.
Individuals living in Quebec and companies operating a business in Quebec will be required to file their taxes with Revenue Quebec and the CRA, and ultimately will receive a notice of assessment further to their filings.
Receiving A Notice of Assessment
What should you do when you receive a notice of assessment you wonder?
Well, generally the notice of assessment will contain a message where the tax authorities will outline their latest assessment and indicate whether you need to take action or not.
When you receive a notice of assessment, you may have three options:
- No further action is required
- Payment is requested by the tax authorities
- You will receive a refund
When the tax authorities review your filing and have no need to make any changes, they will send you a notice of assessment and you’ll have no further action to take.
On the other hand, when the government assesses your file and considers that you have not paid the full extent of your tax liability, you will be asked to remit payment by a certain deadline.
In that case, you have to make the payment before the deadline to avoid interest, penalties, and other actions taken by the government to recover the sums owed.
If you have overpaid or are eligible to tax credits or benefits, the government will issue a notice of assessment indicating that you will get a refund.
The refund will either be sent to you in the form of a cheque or directly deposited in your bank account.
You Have Unpaid Taxes
If you have unpaid taxes, you should find a way to deal with them to avoid unwanted consequences.
When you owe money to Revenu Quebec or the CRA, you will be exposed to interest charges and penalties.
However, in more extreme cases, Revenu Quebec can take action against you and seize money owed to you by the government or your assets.
In certain situations, when you are issued a notice of assessment and you are requested to take action, if you do not take action and the matter is not resolved, you will eventually be issued an arbitrary notice of assessment.
The arbitrary notice of assessment is when the tax authorities impose a liability on you not based on your income tax return but based on the notice of assessment you had received.
Keeping Your Notice of Assessment
When you get your notice of assessment, it’s important that you keep it somewhere safe.
Fundamentally, the notice of assessment serves as evidence that you filed your income tax return.
You may need your notice of assessment when applying for a loan at the bank, or to show your income to another government agency.
If you do not have your notice of assessment, you can reach out to Revenu Quebec and the CRA to obtain a new copy.
Today, everyone can access their account online and consult their notices of assessment electronically.
Another reason why it’s important that you ensure you have all your notices of assessment is to make sure you do not have any lingering tax liability.
When the government sends you a notice of assessment, it’s your responsibility to ensure that you receive it.
The government will not grant you any special treatment for claiming that you had not received your notice of assessment or that it was lost.
So there you have it folks!
What is a notice of assessment in Quebec?
In a nutshell, a notice of assessment or NOA is a document that is issued to you by the Canadian or provincial tax authorities.
In Quebec, you get two notices of assessment, one from Revenu Quebec and one from the Canada Revenue Agency.
In general, the notice of assessment provides you with a summary of your earnings for the past fiscal year, the credits you’re entitled to, the deductions you claimed, and will indicate if you have to pay any further amounts or whether you’re entitled to a refund.
If the government assesses your file and comes up with different numbers than your tax filing, they will explain their assessment in your notice of assessment.
Individuals and businesses should make sure they have received all their notices of assessment to ensure that they take any applicable actions as requested by the tax authorities.
If you have questions concerning your tax return or need legal assistance in dealing with a particular individual or corporate issue, be sure to contact a qualified tax attorney to support you.
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