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CRA notices explained

CRA proposal letter

The letter an auditor sends to explain a proposed reassessment before it is made.

Audits and reviews

A plain explanation of a common CRA letter, checked against the Act and CRA’s own guidance.

4 min readUpdated October 4, 2026

The short version

Use these three points first.

01

A proposal letter explains why CRA proposes to reassess.

02

You have 30 days to agree or disagree.

03

If you disagree with the reassessment that follows, you can object.

In this guide

What it is

If an audit leads CRA to propose a reassessment, the auditor sends a proposal letter explaining the reason. You can contact the auditor to explain why you disagree and provide supporting documents. If that doesn’t resolve it, you can raise it with the auditor’s team leader.

At the end of the audit, CRA sends a final letter: no adjustments, additional tax owing through a reassessment, or a refund.

What to check

Dates that matter

Responding
You have 30 days from the proposal letter to agree or disagree with the proposal.
After the reassessment
If you disagree with the reassessment that follows, you have the right to object. For a corporation’s income tax, the notice of objection is due within 90 days after the day the reassessment was sent.

What to keep

  • The proposal letter and your response
  • The documents you sent to support your position
  • The final letter and any reassessment

In TaxDesk

TaxDesk recognizes proposal, completion, and reassessment letters as audit decisions. Link each one to its audit matter, and the matter shows the stage, the response date, and the outcome beside the original letter.

See every CRA notice explained

Scope note. This page explains a CRA letter in general terms. It isn’t advice about your situation. Check the letter itself, and confirm the dates and your options with your accountant.

Primary reading

Official starting points used to develop and check this guide.

  1. 01RC4188, What you should know about auditsCanada Revenue Agency
  2. 02Income Tax Act, section 165Justice Laws

Continue the workflow

The next useful step

Put the guide into practice

Keep every CRA letter with the record it affects.

TaxDesk reads CRA notices, files them to the right company and year, and keeps them beside the filings and audit matters they relate to.