A reassessment is a change the CRA makes to a tax return it has already assessed, typically after a review or audit, adjusting your tax within the reassessment period.
Once the CRA has assessed a return, it can still change it by issuing a reassessment, usually after a review, audit or matching program finds a discrepancy. The normal reassessment period is three years from the original assessment for individuals and CCPCs, and four years for other corporations.
That time limit disappears where there was misrepresentation from neglect, carelessness, wilful default or fraud, allowing the CRA to reassess any year, however old. Unreported foreign income and unfiled returns carry their own extended windows. If you disagree with a reassessment, the response is a Notice of Objection within 90 days.
Two years after assessing your return, the CRA matches a T5 slip you forgot to report and issues a reassessment adding the investment income plus interest. Because it is within the three-year window, the CRA can make the change.
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