Even if a taxpayer’s objection is denied by objections officers of Canada Revenue, he still has the right to appeal to the Tax Court of Canada.
When a taxpayer is in disagreement with an assessment issued by taxation authorities, he has the right to contest such assessment before the administrative courts of the various taxation authorities. It is sort of an administrative appeal.
A tax audit is the procedure whereby taxation authorities ensure a taxpayer’s legality and compliance with tax laws.
As the taxation system in Canada is based on the principle of self-assessment, it is important for taxation officers to have the possibility to audit a taxpayer’s accounting books, records and other such documents in order to ensure compliance with the law, including make sure that what is reported is a reflection of reality.