What you need to know about your corporate Notice of Assessment (NOA) from Revenue Québec and the CRA?

"Have you received a Notice of Assessment? Here's what you need to know."

Each year, after you’ve filed your corporate income tax return, the Canada Revenue Agency (CRA) and Revenu Québec (if your business operates in Quebec) issue a Notice of Assessment (NOA). This important document confirms that your return has been processed, summarizes the tax assessment or reassessment, and indicates whether you have a tax balance to pay, a refund to receive, or any adjustments required.

Too often, this notice is simply set aside without review, seen as just another formality. However, it is crucial to understand your NOA, as it contains important tax details, including accepted or denied tax credits, adjustments to your assessed income tax, and your RRSP contribution room for the following year. Ignoring an error could lead to an unexpected tax bill, while a missed payment might result in interest charges and penalties.

What is a Notice of Assessment (NOA)?

A Notice of Assessment (NOA) is an official tax statement issued after your corporate income tax return has been processed. It confirms the calculation of federal and provincial taxes, details any corrections made, and indicates whether you have a tax balance to pay or a refund to receive.

A Notice of Assessment may be issued for several reasons:

• After filing your T2 or CO-17: It confirms that your return has been processed and provides the final tax assessment, showing the amount of income tax already paid and any outstanding balance.
• Following a tax adjustment: If corrections were made, the notice will explain the changes and their impact on your balance.
• Due to a tax adjustment: If the CRA or Revenu Québec finds a discrepancy, your file may be reassessed, potentially resulting in an additional amount owing.

If there is a difference between your tax return and your NOA, it’s important to understand the reason and, if necessary, formally object or make amendments within 90 days.

Federal Notice of Assessment (Canada Revenue Agency)

The Federal Notice of Assessment is issued by the Canada Revenue Agency (CRA) and applies to corporate taxes, federal tax credits, and adjustments made to your Canadian income tax return.

It provides key details, including:

• The balance due or refund granted by the federal government.
• The federal tax credits and deductions claimed or denied.
• Your RRSP contributions and deduction limits for the given tax year.
• Any adjustments or reassessments applied to your return.

Notice of Assessment Quebec (Revenue Québec)

The provincial notice of assessment is issued by Revenue Québec and pertains to Quebec corporate income tax, including province-specific credits and deductions.

It includes:

• The provincial tax balance payable or refundable.
• Quebec-specific tax credits, such as those related to innovation or investment.
• Adjustments made to your CO-17 tax return.
• Details on certain provincial tax programs.

If your business is located in Quebec and you file both a T2 corporate tax return and a CO-17 tax return, you will receive two separate Notices of Assessment: one from the CRA and one from Revenu Québec.

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How to get your Notice of Assessment

To avoid delays or lost documents, it’s best to opt for online mail. By activating electronic correspondence on the CRA and Revenu Québec platforms, you can get your NOA as soon as it is issued.

This method not only saves time, but also reduces the risk of postal delivery errors.

Receive your Canada Revenue Agency assessment notice

• Online
  • Sign in to your CRA My Business Account on the Canada Revenue Agency website.
  • View, download, and print your current and previous NOAs at any time.
  • This is the fastest and most secure way to get your Notice of Assessment online.
• By mail
  • If you have not activated online correspondence, the CRA will send your NOA to your business’s mailing address on file.
  • Ensure your CRA account details are up-to-date to avoid delays.

Check CRA My Business Account first. If it’s unavailable, your personal income tax return may still be under assessment. However, if more than six weeks have passed since you filed your return, contact the CRA at 1-800-959-7775 to request a copy of your notice.

Receive your Revenue Québec assessment notice

• Online
  • Log in to My Business Account on the Revenue Québec website.
  • View and download your NOA instantly without waiting for mail delivery.
• By mail
  • If you have not opted for online mail, your NOA will be sent by mail to the address on file.
  • Keep your Revenu Québec account details updated to avoid delays.

Check My Revenu Québec account first. If it’s not there, your return may still be in process. However, if more than six weeks have passed since you filed your CO-17 tax return, contact Revenu Québec at 1-800-567-4692 to request a copy.

Understanding the information on the notice

Your Notice of Assessment (NOA) includes several key elements that are essential to understand and interpret correctly.

1. Notice of Assessment number

This unique NOA number is often required for administrative procedures, such as applying for business funding or filing a dispute with the CRA or Revenu Québec.

2. Amount of tax paid or due

This section outlines the income tax already paid and whether you still owe a balance or are eligible for a tax refund. If there is an outstanding amount, interest and penalties may apply, so it’s important to review this carefully.

3. Refund (if applicable)

If you overpaid your taxes, your NOA will confirm the refund amount you are entitled to and the expected payment date. Refunds are typically processed faster if you’ve signed up for direct deposit.

4. Tax credits and adjustments

This section lists the tax credits and deductions you claimed on your income tax return. If any were denied, the NOA will explain why and how it affects your taxable income.

5. Understanding the adjustments

If the CRA or Revenu Québec made adjustments to your return, this section helps you understand the changes applied and their impact on your tax balance. If you disagree with an adjustment, you have 90 days to formally object or request a reassessment.

Where to find a Notice of Assessment number?

Your Notice of Assessment (NOA) number is a unique identifier assigned by the Canada Revenue Agency (CRA) and Revenu Québec. It provides quick access to your tax file and is often required when applying for funding, communicating with tax authorities, or filing an appeal.

CRA Notice of Assessment number (federal)

• Located on the top right of the notice of assessment sent by the CRA.
• Assigned after your T2 corporate tax return has been processed.
• Accessible online via My Business Account on the CRA website.

Revenue Québec Notice of Assessment number (provincial)

• Also located on the top right of the notice of assessment issued by Revenue Québec.
• Provided after processing the CO-17 return for businesses incorporated in Quebec.
• Available through My Revenu Québec account.

What to do if you disagree with a tax assessment

If you receive a Notice of Assessment (NOA) and believe there is an error, you have the right to formally object by filing a notice of objection. This allows you to request an official review of your file by the Canada Revenue Agency (CRA) or Revenu Québec.

How to file an objection?

1. Analyze the notice of assessment: Before taking action, carefully review the adjustments made to your tax assessment and ensure no mistake has been made. Compare your NOA with the information from your income tax return and verify any disallowed deductions or tax credits.

2. Prepare supporting documentation: A notice of objection must be supported by solid evidence, such as:

• Invoices and receipts to justify business expenses.
• Financial statements confirming that your reported taxable income is accurate.
• Correspondence with the CRA or Revenu Québec related to your tax return or reassessment.

3. Filing your objection: You have 90 days from the date of your NOA to formally object.

• For the CRA: Submit your objection via My Business Account or by completing a paper form.
• For Revenu Québec: File your request through My Revenu Québec account under the Request for Review section.

4. Wait for your reassessment: Once your objection is submitted, the CRA or Revenu Québec will conduct a formal review of your file. This process may take several weeks or even months, depending on the complexity of your case. While waiting for a decision, it’s advisable to pay any outstanding balance by the due date to avoid interest charges. If the reassessment results in a refund, the overpaid amount will be returned to you.

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Frequently asked questions to our accountants and tax specialists regarding tax notices

Should you keep your tax notices?

Yes, it is recommended that you keep your tax notices for at least six years, as with any other important tax document. These notices may be required during a tax audit, when applying for business financing, or to justify an accounting correction. 

By fully understanding your tax assessment and knowing where to find your NOA number, you can ensure efficient tax management and avoid administrative issues.

When do I need the notice number?

Your NOA number is often required in several situations, such as:

• Applying for business financing, where it serves as proof of tax compliance.
• Contacting the CRA or Revenu Québec regarding your tax file.
• Filing an objection or correction request with tax authorities.

How to get your copy and retrieve a lost Notice of Assessment 

If you owe money to the tax authorities, the Canada Revenue Agency (CRA) and Revenue Québec offer several payment options. Payment can be made:

• Online through your banking institution or My CRA/Revenu Québec account.
• By pre-authorized debit, if activated in advance.
• By cheque or money order sent with the payment voucher.

To avoid unnecessary costs, it is recommended that you prefer electronic payments, which are faster and more secure.

What are the deadlines for paying the amounts due?

If the notice of assessment you received shows a balance due, you must pay it within 30 days of the date of issuance. Failure to do so will automatically result in the imposition of daily interest on the unpaid amount, in addition to possible penalties for extended non-payment. 

What do I do if my payment is late?

A late payment will automatically lead to daily interest charges on the outstanding balance. After a certain period, you may receive an arbitrary notice of assessment for late payment, and additional penalties may apply. 

If you are unable to pay immediately, you can request a payment arrangement with the CRA or Revenu Québec. Depending on your financial situation, an installment plan may be negotiated to spread out payments and avoid severe collection measures.

Count on T2inc.ca to file your corporate tax

The Notice of Assessment (NOA) is a key document in corporate taxation in Canada. Understanding its details and proactively managing your tax obligations helps maintain the financial health of your business. Using online resources and professional tax services ensures that you stay compliant and avoid costly errors.

Need reliable tax assistance? At T2inc.ca, we help business owners understand their NOA and resolve potential assessment errors, as long as we have handled their corporate tax return. Entrust us with your tax filing to avoid unnecessary complications and benefit from accurate tax follow-up.