Reassessment

Understand what reassessment means when the CRA changes a previously assessed return.

Definition

A reassessment is a CRA change to a return that was already assessed.

Why It Matters

The term matters because many taxpayers assume the first assessment is always final. In practice, the CRA can later change the result, and taxpayers can also ask for adjustments in some situations.

How It Works in Canada

Reassessment happens after an earlier assessment already existed. The change may arise because the CRA reviewed information, received new data, corrected something, or processed an adjustment request. Whatever the reason, the core idea is that the prior assessment result has changed.

That can affect refund amounts, balances owing, deductions, credits, or other return details. It is therefore a process term, not just a vocabulary label.

Practical Example

A taxpayer files a return, receives a Notice of Assessment, and later gets a reassessment because the CRA corrected a reported amount or because an adjustment was accepted. The new result replaces the earlier assessed position for that issue.

Common Misunderstandings

Reassessment is not automatically the same as a full audit.

It is also not just a taxpayer-side edit in personal records. It refers to a changed CRA assessment result.

Knowledge Check

  1. Can reassessment happen after a Notice of Assessment has already been issued? Answer: Yes. Reassessment is specifically about changing a result that was already assessed.

  2. Does reassessment always mean the taxpayer did something wrong? Answer: No. A reassessment can happen for several reasons, including corrections or accepted adjustment requests.

Caveat

Deadlines, rights of objection, and the practical consequences of reassessment depend on the facts and timing, so high-stakes disputes should be checked against current CRA procedures and, where necessary, professional advice.