7 April 2022 CBA Roundtable, Q.1

Where a builder objects to a reassessment that is based on the determination of a higher FMV of the property, in what situations, if any, would the Appeals Directorate increase the reassessment further based on a higher FMV determined by another CRA appraiser during the objection process? CRA responded that s. 301(3) “allows an Appeals Officer to exercise their judgement to make an upward adjustment with respect to a matter under dispute, or a related matter within the same period under objection, where the matter is of relative importance, including being in relation to the FMV of a disputed property” – and also indicated that “[a]ny upward adjustment must be approved by the Appeals Officer’s manager or the Chief of Appeals.”

CRA stated that it has the authority under ETA s. 301(3) (equivalent, although not identical, to ITA s. 165(3)) to further increase a reassessment that has been objected to (for example, if a second valuation prepared for the Appeals Officer produced an even higher valuation) – but indicated that “[a]ny upward adjustment must be approved by the Appeals Officer’s manager or the Chief of Appeals.”