Why You Should Be Looking Carefully at Your NOA

When tax money disappears, it’s not magic — it’s a system error.

You get your Notice of Assessment (NOA) from CRA. You see the refund, you smile, you toss it aside like junk mail. Everything looks fine — so you move on.

Big mistake.

That NOA is gold. For some of you, it holds thousands in carryforwards and future deductions. We're talking:

• RRSP deduction limits

• Tuition credits

• Home Buyers’ Plan repayments

• Capital and non-capital losses

• Training credit balances

• And that’s just the tip of the iceberg.

  
  

You assume everything's good because CRA “processed” your return. Think again.

CRA is a Machine... and Sometimes It Malfunctions

Yes, CRA runs on systems and automation — but who operates the machine? Humans. And humans are prone to mistakes.

You’ve got agents processing complex returns — and while some are knowledgeable and dedicated, let’s be real: not all of them are.

Like any large organization, CRA has its fair share of overworked, undertrained, or checked-out employees just collecting a paycheck. And when one of those bad apples handles your file? Mistakes happen.

And fixing those mistakes? Good luck. The system is unionized, siloed, and designed for minimal accountability.

But guess who pays the price? YOU.

Why I’m Writing This (And Why I’m Still Pissed Off)

Here’s what triggered this blog. One of my clients had non-capital losses. We’re talking tens of thousands. I noticed them on the NOA, and said:

“Great — I’ll apply part of this to the previous year, and we’ll go back and apply it to your other years too.”

So I submit a super simple online reassessment — just one line added per year. One of the years gets reassessed. Client gets their refund.

Then the CRA drops a letter saying:

“You can’t apply capital losses since there are no taxable capital gains.”

What. The. Actual. F***?

I didn’t apply capital losses. I applied non-capital losses — which can be used against any type of income. So I dig deeper…

And then I see it: In the year CRA accepted the reassessment, they used the amount I requested…and deleted the remaining balance in losses.

That’s right. $50,000 minus $10,000 equals zero, apparently. According to the CRA math department — run by people who probably failed Grade 4 arithmetic.

This isn’t a full return overhaul. It’s one damn line. CRA has access to all the carryforward balances. All they had to do was apply part, reduce the total, and move on.

But no. They nuked the entire balance — and now the system thinks nothing is left.

This Can Happen to You — Even If You’re “Careful”

And if you’re using DIY tax software? You’re not safe either. I had another client wipe out huge capital losses because they didn’t import their prior year return. Their software didn’t carry anything forward — and CRA didn’t double-check.

So what happened? CRA accepted the new lower value, overwrote the old one, and now the client is screwed.

Bottom Line: You Need to Watch Your NOAs — Every Year

Mistakes can happen — but with CRA, they’re common.

You should be comparing your current NOA to last year’s. Look at your carryforwards. Look at your balances. If something looks off? Don’t assume CRA got it right.

If you’re not sure what you’re looking at — send it to me. I’ll review your NOAs for free.

Why? Because it’s your money. And someone should be fighting to protect it.

Let Me Be That Someone.

I’m not a paper-pusher. I don’t just file taxes. I go to war for my clients.

And if CRA wants to play dumb? I’ll remind them just how savage I can get want my clients get wronged.