What to Do When the CRA Denies Your Claim

It Happens More Often Than You Think

Getting a letter from the Canada Revenue Agency (CRA) saying your claim was denied can be stressful — but it’s more common than most people realize.
Every year, thousands of Canadians lose deductions or credits because of missing receipts, incorrect forms, or misunderstandings about CRA rules.

The good news: a denied claim isn’t necessarily final. You often have the chance to provide clarification, submit more documents, or appeal the decision.

Step 1: Understand Why the Claim Was Denied

The CRA usually explains the reason in your Notice of Assessment or Reassessment. Common reasons include:

• Missing or unclear receipts or proof of payment

• Claiming expenses that don’t meet CRA criteria

• Errors in calculation or income reporting

• Incomplete or incorrect forms

Read the notice carefully — it tells you exactly what the CRA questioned and what you can do next.

Step 2: Gather Supporting Documents

If your claim was denied because of missing proof, gather all relevant documents before responding.
This might include:

• Receipts or invoices with vendor details

• Bank or credit card statements

• Mileage or logbook records

• Lease or utility bills for home office claims

• Written explanations showing business use

The CRA values clear, organized documentation. Even digital copies are acceptable as long as they clearly show who, when, and what was paid.

Step 3: Respond Promptly

If you believe your claim is valid, respond to the CRA within the timeframe stated in the letter — usually 30 or 90 days.
You can:

• Send your documents through CRA My Account, or

• Mail them to the address listed on your notice.

Always include your Social Insurance Number (SIN) and a brief explanation of your response. Keep copies of everything you send.

Step 4: Request an Adjustment (If Needed)

If you notice an error after your tax return is filed, you can request a change or adjustment using:

• The “Change My Return” option in CRA My Account, or

• Form T1-ADJ (T1 Adjustment Request).

This allows you to correct missing or misreported information that led to the denial.

Step 5: File a Formal Objection (If You Disagree)

If you still disagree with the CRA’s decision after your response, you have the right to file a Notice of Objection.
You must do this within 90 days from the date on your Notice of Assessment or Reassessment.

You can file online through CRA My Account or submit Form T400A (Notice of Objection). Once filed, your case will be reviewed by an appeals officer — someone independent from the original auditor.

Step 6: Get Professional Help

Tax rules can be complex, and handling a CRA review or objection alone can feel overwhelming.
Working with a tax professional ensures your documents are complete, your arguments are strong, and your communication with the CRA stays professional.

At TiKi Tax, we help clients review denied claims, organize documentation, and communicate directly with CRA officers to resolve issues efficiently.

Common Situations Where Claims Are Denied

Many people face denials for:

• Home office deductions (missing square footage or unclear business use)

• Vehicle expenses (no logbook or personal-use mix-up)

• Medical or donation credits (invalid or incomplete receipts)

• Business losses (not meeting CRA’s definition of an active business)

In most cases, these issues can be fixed with proper documentation and guidance.

The Bottom Line

A denied claim doesn’t mean you’ve done something wrong — it usually means the CRA needs more clarity or evidence.
Stay calm, stay organized, and respond professionally.

And if you need help preparing your response or reviewing your situation, TiKi Tax is here to guide you — ensuring your return is accurate, supported, and fully compliant with CRA standards.