Monday, September 4, 2017

How Can Toronto Tax Litigation Lawyers Help You in a Tax Dispute

Practice Group Lawyers

Toronto tax litigation lawyers are a special breed of litigators. They are all professionals highly specialized in taxation law, and some of them have additional qualifications as chartered professional accountants or chartered accountants (CPA or CA). In addition to understanding tax laws, they are also knowledgeable about the administrative procedures that govern the day to day workings of the Canada Revenue Agency (CRA) and the Tax Court of Canada.

If you are facing a tax dispute with the Canada Revenue Agency, tax litigation attorneys can help in every stage of the process.

Tax Audit

All personal and corporate tax returns are usually evaluated by Revenue Canada. In some cases, they find numerical or clerical errors that may lead them to question whether a person or a business has paid the right amount of taxes, and they might request an audit.

During a tax audit, auditors will examine documents either at your place of business (on-site audit) or at his or her office (office audit). He may ask to see one or more of the following documents:

  • Invoices
  • Contracts
  • Bank statements (yours and other family members), and
  • Previously filed tax returns

A tax litigation lawyer can represent you throughout the audit process to make sure that your legal  rights are protected and to see to it that auditors stay within their boundaries and only obtain information that are within what the law allows.

Tax Reassessment

Once the audit is completed and auditors determine that you need to pay additional tax, they will send out a Notice of Reassessment, which will tell you the reasons for the reassessment and the total amount of tax that you still owe.
Once you receive the Notice of Reassessment from the CRA, you will have 30 days to respond. It is critical at this point that you consult with a tax dispute lawyer to review the CRA’s explanations of the reassessment  in order to determine if their decision is justified. If you disagree with the CRA’s decision, your tax attorney will help you prepare the Notice of Objection


Tax Appeal

The Notice of Objection will serve as your appeal for a reversal of the decision. It is highly recommended that a tax dispute attorney prepares your Notice of Objection. Your lawyer will be able to set out the relevant facts and your reasons in a fluent and persuasive manner, using applicable laws of the Income Tax Act to to strengthen your position and support your appeal. Aside from this, a tax lawyer at this point can provide guidance and sound advice to help you understand your rights, what points you can appeal, and what to expect during the entire process.

Tax collections and penalties

Every person and business in Canada are required to pay a variety of local, state, and federal taxes, which may include income tax, sales tax, payroll tax, and excise tax to name a few. Tax lawyers can help you understand what taxes you are required to comply with as well as the corresponding penalties the CRA can impose for any unpaid taxes.

Nothing causes such panic to any individual or business owner than receiving a letter from the Canada Revenue Agency. If you are being assessed and need representation, Toronto tax litigation lawyers can competently handle litigation matters and settle all types of tax disputes whether outside of the courtroom or at the many different levels of provincial or federal courts.

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