The Strategic Choice After Reassessment

Comparing the CRA’s self-adjudication stage with independent oversight in appeal
The Strategic Choice After Reassessment
The Strategic Choice After Reassessment
7:33

When CRA issues a Notice of Reassessment (NoR), taxpayers who contest it face a structural choice: remain in CRA’s self-adjudication stage at objection, or transition to the Tax Court’s independent oversight. The law allows either path. The decision shapes both the resources executives commit and the probabilities of a favourable outcome.

The law does not require taxpayers to complete CRA’s self-adjudication stage step by step. Taxpayers may transition to the Tax Court 91 days after filing a notice of objection. In complex or high-stakes cases, remaining in CRA’s objection stage rarely changes outcomes and can add time and cost without materially improving results.

This decision is one of the three critical inflection points in CRA challenges. For context on all three, see The Three Critical Inflection Points in CRA Challenges.

Two Pathways After Reassessment: Continue Self-Adjudication or Transition to Independent Oversight

After filing a notice of objection, executives face two options:

  1. Fully engage CRA’s self-adjudication process at the objection stage

  2. Disengage after 91 days and leverage the Tax Court’s independent oversight

The table below compares these pathways in terms of objectives, costs, time, complexity, and control.

Category CRA Self-Adjudication (Objection Stage) Independent Oversight (Tax Court Appeal)
Objective Reverse the NoR through CRA’s self-adjudication process. Reverse the NoR through negotiation under court oversight or, if necessary, a judicial ruling.
Professional Fees Lower initial cost, but higher overall if the issue persists into appeal. Higher initial cost, but lower overall in many cases due to earlier and more definitive resolution.
Time Often lengthy due to assignment delays; usually exceeds appeal timelines if objection fails. Comparable to objection, but often shorter overall when resolution occurs under court supervision.
Complexity Less complex initially but lacks the procedural safeguards of a court. Submissions here can constrain options later. More complex legally, but provides structured opportunities for resolution, including mediation and pre-trial negotiations.
Outcome Control Limited rights; outcome determined within CRA’s self-adjudication. Submissions may limit arguments later. Greater control through negotiation or judicial oversight, ensuring a more balanced process.
Public Record Private process; no published record. Pleadings published; settlements private; judgments published if a trial occurs.
Potential for Settlement Settlement possible, but within CRA’s self-adjudication stage; repeated positions can reduce flexibility later. High settlement potential in a more balanced environment, often before trial.

Analysis

Advisors often recommend the pathway with which they are most familiar. Compliance-focused professionals tend to emphasize CRA’s self-adjudication stage, while litigation specialists highlight the advantages of independent oversight.

The choice is ultimately strategic: it depends on weighing probabilities, costs, and the importance of external review.

Strategic Reflection

Questions for executives assessing whether to remain in CRA’s self-adjudication process or transition earlier to the Tax Court’s independent oversight:

  • What probability of success is realistic at CRA’s self-adjudication stage compared with appeal under independent oversight?

  • How important is independent oversight in creating balance when CRA has already formalized its position?

  • If objection fails, what additional time and cost will have been incurred that could have been avoided by moving to appeal earlier?

  • How might today’s submissions shape the record a judge will later review — or give CRA added leverage at appeal?

Closing Note

After reassessment, executives must decide whether to continue in CRA’s self-adjudication stage or to move to the Tax Court’s independent oversight. The right choice depends on balancing probabilities of success, cost, and long-term positioning.

 

Get in touch

 

Insights

Background Pattern 2 with Tax Strategy Insights text - The Three Critical Infection Points in CRA Challenges, resolving high-stakes tax disputes for mature businesses and affluent families.

CRA challenges are often described procedurally, but the decisive moments are structural shifts: when CRA sets out its likely position, when it formalizes that position, and when independent oversight becomes available. Each inflection point alters probabilities and options.

Tax partner from Price Waterhouse Coopers commending Peter Aprile and the Counter Tax Litigators team for their hands-on, focused, and diligent approach to tax law.

What Accountants Say

Peter Aprile is a very hands on and practical tax lawyer who is very focused and diligent. He is a pleasure to work with.

- Susan Farina, Tax Partner, Price Waterhouse Coopers

Senior VP client with an accounting and finance background praising Counter Tax Litigators for their expertise, dedication, and businesslike approach to tax dispute litigation.

What Clients Say

I’m a Senior VP with an accounting and finance background. I’ve worked with lawyers and large law firms. I was referred to Counter to fix a tax dispute. It is very rare to encounter lawyers that combine expertise, dedication, and a businesslike approach to litigation. I have no hesitation in recommending Counter.

- David Cuddy, Senior Vice-President, Finance & Business Operations, CFL

Accountant representing Fuller Landau LLP praising Counter Tax Litigators for superior communication in resolving client tax disputes.

What Accountants Say

Counter Tax Litigators has worked with Fuller Landau to resolve several of our clients’ tax disputes. Counter delivers superior communication.

- Laura Couvrette, CPA, CA, Fuller Landau LLP

Retired CEO client recommending Peter Aprile and the Counter Tax Litigators team for their competence, honesty, and exceptional handling of legal matters.

What Clients Say

I spent a good part of my career dealing with attorneys on innumerable matters, and found Peter to be extremely competent, open-minded and exceptionally honest. I would not hesitate to use Peter again, and highly recommend the team at Counter Tax Litigators.

- Mark Ram, Retired CEO

Successful business leader praising Counter Tax Litigators’ team for their professional, efficient representation, leading to a highly satisfactory decision.

What Clients Say

Counter’s representation on our behalf was well informed, professional and efficient, which ultimately resulted in a highly satisfactory decision in all aspects.

- Klaus W. Reif, President, Reif Estate Winery

Business leader praising the Counter Tax Litigators team for going above and beyond in handling a significant tax dispute.

What Clients Say

I was amazed with the results. They went above and beyond, and I would recommend Counter to any person or business with a significant tax dispute.

- Brian Grott, Northland Screen Corp

Framework Graphic 1 – representing Counter Tax Litigators' integrated approach to client service, combining advanced systems and deep legal expertise to resolve high-stakes tax disputes.

How can we help you?

Recognition

For nearly 20 years, our leadership in Canadian tax controversy and litigation has earned consistent recognition for expertise, results, and client trust.