Escalation | Direct Dialogue
Informal Resolution
Step 1 — Informal Resolution and Escalation A negative preliminary decision from a CRA Research and Technology Advisor (RTA) is not the end of the road. If the reviewer concludes that your work is ineligible, the CRA provides a formal escalation process. The first step is to initiate a direct dialogue with the RTA or Financial Reviewer (FR). Most early-stage disputes stem from a misunderstanding of facts rather than a strict legal denial. By presenting new, clarifying data, you can often reverse the decision here. If you cannot reach an agreement, the issue is escalated to their superiors: the Research and Technology Manager (RTM) or Financial Review Manager (FRM), who can reassess the perspectives of both parties.
Process Audit | Procedural Fairness
The Administrative Review
Step 2 — The Administrative Review If the management-level discussion does not resolve the dispute, you may request an Administrative Review by an Assistant Director of SR&ED. It is critical to understand that this is not a second technical review of your engineering work. Instead, it is an audit of the review process itself. The Assistant Director will investigate whether you were afforded due process: Were CRA guidelines strictly followed? Were you given sufficient time to provide additional documentation? Were the RTA's explanations reasonable? If the process was found to be flawed, the original decision may be reconsidered.
Legal Strategy | Independent Assessment
Formal Appeals and Objections
Step 3 — The Formal Appeals Process (Notice of Objection) If all administrative avenues are exhausted and your claim is officially denied, you will receive a Notice of Assessment (or Reassessment). At this point, the dispute moves out of the SR&ED directorate. You have 90 days to file a formal Notice of Objection. This moves your case to the CRA’s Appeals Branch, an independent division separate from the original reviewers. Filing this notice is the first legally binding step in formal dispute resolution and requires a meticulously structured technical and financial defense.
Litigation | Judicial Recourse
The Tax Court of Canada
Step 4 — The Tax Court of Canada Your final recourse is to take the matter outside of the CRA entirely by filing an appeal with the Tax Court of Canada (TCC). As discussed in our previous guides, the TCC is an independent judicial body. While litigation is a last resort, knowing that you have the infrastructure and documentation to defend your innovation in federal court often ensures that disputes are settled amicably and favorably long before a judge is required.
