Page "Canada Revenue Agency" Paragraph 10

The Canadian tax system is based on voluntary compliance or self-assessment.

Every taxpayer is obliged to file their tax returns on time.

Penalties will be imposed if returns are filed late.

The CRA process the tax returns with very limited review and promptly issues a Notice of Assessment, commonly known as a tax bill.

The Notice of Assessment is a legal documents.

Regardless of whether the assessment is right or wrong, it has legal effect, which entitles CRA to collection actions.

If a taxpayer disagrees with an assessment, they could go through the appeal process, which may include challenging the assessment in court.

Once a tax return is filed, it is subject to audit, normally after the return is assessed.

In some cases, a tax return could be audited before being assessed.