Gents,
-How long does CRA need to reply back after submitting a review letter? I am doing employment expenses review for a client, and it it not easy to go through everything including receipts and T2200 forms.
-If we need to file an Appeal to object the results of the review, how long will it take to reach final decision with CRA?
-Will the interest still apply from end of April till the Appeal final decision? Does interest apply to penalties too if imposed?
#1 - usually not too bad but usually at least 8 weeks or so but sometimes 6 + months. If you mean how long will the CRA wait before disallowing the expenses - the letter generally gives 30 days and their internal policy is another 30 days after that but they don’t always do that. If you need more time just call the number on the letter and tell them. They will generally give you an additional month or so with no questions asked.
#2 - Years probably.
#3 - Interest applies to everything back to April 30th. If it needs to be appealed just pay whatever the amount is and you will get it back if the appeal is successful. Otherwise you will probably end up paying it years after the fact plus interest and penalties… Generally speaking if you can’t get it past the initial reviewer you are unlikely to get it past the appeals without a court fight. I have occasionally managed to convince the initial auditor that what they decided the first time wasn’t right/fair but you need a very good and well laid out submission.
Put together the submission properly cross-referenced and totaled and it will be accepted if you have all the receipts. If you don’t it will be disallowed and an Appeal won’t help.