What are the notices of assessment from Revenue Quebec and the CRA?

Every year, Canadian businesses receive federal and provincial assessment notices—critical documents that significantly influence their financial standing. Issued by the Canada Revenue Agency (CRA) and provincial authorities like Revenu Quebec, these notices provide a detailed summary of your tax return, including taxes owed, payments made, and any refunds or remaining balances.

In this comprehensive guide, our corporate tax accountants unpack everything you need to know about notices of assessment: their purpose, the key details they include, how to locate your notice number, and much more.

What is a Notice of Assessment?

A Notice of Assessment is an official document issued by the federal or provincial tax authorities after reviewing a tax return filed by a taxpayer, whether an individual or a business.

The Notice of Assessment serves as an official summary of your tax situation, including taxable income, contributions to government programs, and information on the document about income taxes already paid. It also confirms whether contributions exceed the RRSP deduction limit or if unused contributions exist.

Federal Notice of Assessment

The Federal Notice of Assessment, issued by the Canada Revenue Agency (CRA), provides a detailed summary of the tax calculations based on the tax return. It covers critical details like assessed income tax, tax credits, and contributions to programs such as the Canada Pension Plan (CPP) and Employment Insurance (EI).

The notice also informs taxpayers whether they owe money to the CRA, are entitled to a tax refund, or have already paid their tax bill. This information is crucial for managing personal income and financial planning.

Quebec Provincial Notice of Assessment

The provincial notice of assessment is just as important as its federal counterpart. It is issued by provincial tax authorities, such as Revenu Quebec. It reflects jurisdiction-specific details such as tax rates, tax credits, and contributions to provincial programs, ensuring accuracy based on the calculated taxable income.

This customization accurately reflects the different tax rates, tax credits, and benefit programs that characterize each jurisdiction's tax system.

How do I get my notice of assessment in Quebec?

Corporations in Quebec can access their notices through CRA’s online mail system or Revenu Quebec’s My Account for Business. Alternatively, these documents can be requested via mail or telephone. Issuance times vary, but are generally fast, allowing for reactive tax management.

When you choose the T2inc.ca online solution for your corporate taxes to file your tax return electronically, you’ll benefit from end-to-end support, from filing to issuing your corporate tax assessment summary.

Federal and Provincial Timelines

In general, the CRA aims to issue notices of assessment within two weeks for returns filed electronically (Netfile or efile) and up to eight weeks for paper returns. For businesses or individuals who live outside Canada, it may take up to 16 weeks.

For provincial assessment notices, the timelines may vary slightly depending on the province or territory of residence. In Quebec, Revenu Québec aims to issue notices of assessment within 14 business days for returns filed electronically. For returns mailed or filed on paper, the turnaround time can be as long as 4 to 6 weeks. As with federal returns, these times are approximate and may vary.

Notice of Assessment Number

Each Notice of Assessment issued by the CRA has a unique number that uniquely identifies your company's return for that tax year. This number is essential for all future correspondence with the CRA regarding the notice of assessment.

Similarly, Revenu Quebec assigns a unique number to each provincial notice of assessment. This number is essential for accessing your tax information online, for any dispute or request for review of the notice, and for facilitating communication with Revenue Quebec.

Where can I find my Revenue Quebec assessment number?

To find your notice of assessment number, take the notice of assessment itself and look for a combination of 11 characters (numbers and letters) in the upper right-hand corner.

Your assessment number will always begin with an "M" or a "Q".

What do you do if you receive a notice of assessment?

Receiving a notice of assessment, whether from the Canada Revenue Agency (CRA) for a federal return or from Revenu Quebec for a provincial return, is a normal step in the income tax filing process. By following these steps, you can ensure that you respond appropriately and keep your tax affairs in order.

1. Review the information

Carefully review the notice of assessment to make sure all the information is correct, and compare the amounts shown to your tax return and calculations. Look for discrepancies in reported income, deductions, and tax credits. Make sure all contributions and tax payments have been properly recorded.

2. Understand your notice

Determine whether the notice indicates an amount due, a refund, or whether your return has been accepted as is with no changes. Note important dates, such as the deadline for paying any balance due without incurring interest or penalties.

3. Act accordingly

Pay any amount due before the due date to avoid additional charges.

File an appeal or request for review if you believe there is an error in the notice of assessment. You generally have 90 days from the date of the notice to dispute the results with the CRA or Revenue Quebec.

4. Keep your documents

Keep a copy of the notice of assessment with your tax documents. It may be useful for future reference, including loan applications, or to clarify your tax situation when preparing future tax returns.

5. Seek professional help if needed

Seek the help of an accountant or tax professional if you have questions or need help understanding your notice of assessment or preparing an appeal. A professional can provide valuable advice and help you navigate the process.

If you have filed your T2 tax retunrs and/or CO-17 tax returns with T2inc.ca, we can answer your questions directly. All preliminary reviews will be done before your documents are mailed and answers will be provided upon receipt of the notice of assessment.

6. Plan for the future

Use the Notice of Assessment to plan for your future tax obligations. If you receive a refund, consider how you can use the money, such as reinvesting it in your business or using it to pay off debt.

Should I keep my tax notices?

It is generally recommended that you keep your tax notices and related tax documents for at least six years after the end of the tax year to which they relate. This period coincides with the limitation period during which the Canada Revenue Agency (CRA) or Revenu Quebec may request a review of your tax situation based on the information they have on file.

These documents serve as official proof of your tax returns and may be required in several important situations:

Audits and disputes: If you need to dispute an assessment or reassessment or are subject to an audit by the CRA or Revenu Quebec, your Notices of Assessment (NOAs) will be critical in proving your case. You have 90 days to formally object to an assessment if necessary.

Loan or credit applications: Financial institutions often require previous years' NOAs as proof of income when you apply for a loan, mortgage, or other credit products. These documents help them verify your personal income tax return and your ability to repay.

Government programs: Eligibility for certain government programs, such as housing assistance or unemployment insurance, may require your tax notices or supporting documentation as part of the application process. These details are often calculated based on your annual income.

Tax and financial planning: Notices of Assessment contain important information, including your RRSP contribution room, maximum contributions for the year, and amounts you may deduct in the future. This allows you to plan effectively for the following year or manage contributions to programs like the Lifelong Learning Plan (LLP) or PRPP.

Estate Settlement: For estate administration purposes, the decedent's Notices of Assessment are essential to ensure that all tax obligations are met before assets are distributed. The CRA may also require supporting documentation for verification.

What should you do if you've lost your notice of assessment?

If you’ve filed your tax return and find yourself in a situation where you have lost your Notice of Assessment (NOA), don’t worry—there are several ways to retrieve this important document.

The most direct way is to use the online services of the Canada Revenue Agency (CRA) via "My business Account" or Revenu Quebec via "My Account for business", where you can view and download your notices for the required years. For even easier access, the "MonARC" application allows you to view your notices directly on your mobile phone.

If you don’t have Internet access or prefer a traditional approach, you can request a copy by calling the CRA’s Tax Information Service or Revenu Quebec’s Customer Service Department. After verifying your identity, they will mail the document to you. Alternatively, depending on your location and applicable restrictions, you may also visit a CRA or Revenu Quebec office in person.

To avoid future inconveniences, remember to save a digital copy of your notice and keep a paper copy for your tax records. This will ensure you have access to your current and previous NOAs, which are often required as supporting documentation for adjustment requests, tax planning, or eligibility for certain programs.

What happens if I'm late with my taxes?

Late filing may result in additional charges in the form of interest and penalties, which are detailed in the Notice of Assessment received after a late filing.

If you fail to respond to this notice or more than one, you risk receiving a Notice of Arbitrary Assessment, which is the IRS's estimate of your tax liability based on available information, including higher charges. Ignoring this notice can seriously worsen your situation and lead to severe collection action.

If you're late, it's important to act quickly by contacting the IRS to explore solutions such as payment arrangements or amending your tax return to reduce penalties and avoid further problems.

Questions about your Quebec Notice of Assessment?

Whether you file a federal or provincial income tax return, the Canada Revenue Agency (CRA) and Revenu Quebec will process your return and issue a Notice of Assessment (NOA) that informs you of the amount of income tax you owe and any credits or adjustments that may be available. Keep your NOA in a safe place, as it is an important document that can help with future tax planning, administrative tasks, or even as evidence for government programs and financial applications.

Need help understanding your Notice of Assessment, resolving a tax delay, or dealing with a reassessment? At T2inc.ca, we turn your tax challenges into concrete, effective solutions, whether you need to file a formal appeal or make changes to your return.

Contact us today to put your tax worries behind you and get the clarity you need to move forward with confidence.