When “Ninety Days” Starts Late – Lessons from Zaugg v. The King (2025 TCC 82)

Canadian taxpayers normally have ninety days to file a Notice of Objection after the Canada Revenue Agency (CRA) issues a reassessment, determination, or confirmation. Miss that window and you still have up to one year from the original deadline to ask for an extension, but the CRA can refuse. When it does, the Tax Court may step in. A recent decision, Zaugg v. The King, 2025 TCC 82, shows how the clock can be reset when CRA fails to send the notice to the address it has on file.

The Facts in Zaugg

• 2018 – CRA mailed a Disability Tax Credit (DTC) notice of determination to the address written on the taxpayer’s Form T2201.

• 2019 – A second copy went to a different Toronto address that CRA apparently found on returned mail.

• In both cases the taxpayer never received the letters, and neither address matched the one CRA carried in its own system.

• 2023 – While checking his CRA My Account, the taxpayer discovered the 2019 determination and filed an objection within ninety days of that discovery.

• CRA argued the objection was late; the taxpayer asked the Court to decide when the notice was actually “sent.”

  
  

The Court held that a notice is not deemed received merely because CRA put it in the mail. Under subsection 244(14) of the Income Tax Act, a notice mailed to the wrong address—or posted online without the mandatory electronic notification—is not considered sent. Because CRA never sent an electronic alert and never mailed the notice to the correct address, the Court ruled that the notice was “sent” only when the taxpayer accessed it online in 2023. His objection was therefore timely.

Why This Matters

1. CRA must use the address it has on file. If it mails a notice elsewhere, the legal clock does not start.

2. Electronic correspondence is deemed sent only after CRA issues an electronic message. Simply posting a document to My Account is not enough.

3. A denied DTC certificate can be objected to in the same way as an income-tax reassessment, even though there may be no dollar amount at stake.

4. Businesses face different electronic-delivery rules for GST/HST, payroll and corporate tax accounts; confirm the settings in “My Business Account.”

   
   

Practical Tips for Taxpayers and Advisors

• Keep your address current. File Form RC325 (Individuals) or RC59/RC721 (businesses) whenever you move.

• Enable electronic notifications. In My Account or My Business Account, opt-in for email alerts so you receive an immediate message when CRA posts a new document.

• Check the portals regularly. Even with email alerts turned on, build a habit of logging in—especially during audit or review periods.

• Act quickly. If a notice surfaces unexpectedly, mark the date you first saw it and file your objection within ninety days (ninety-day rule) or apply for an extension within the following year.

• Document everything. Keep screen captures showing when you first accessed the notice; they can be decisive evidence if timing is challenged.

• Seek professional help early. Tight timelines and procedural missteps can erase otherwise solid technical arguments.

  
  

Final Thoughts

Zaugg reminds us that procedural fairness still matters: CRA must play by its own service-of-notice rules, and taxpayers are protected when those rules are ignored. For individuals and businesses alike, safeguarding your rights starts with something as mundane as an up-to-date mailing address and a working email alert.

If you have questions about missed deadlines, DTC determinations, or any other CRA notice, speak with a qualified tax advisor promptly—those ninety days (or one year) can disappear quickly once the clock truly starts ticking.