When do you need a tax lawyer?
Receiving a Notice of Reassessment
The main time when you will need a tax lawyer is when a notice of reassessment is issued. Notices of reassessment come after an audit by the Canada Revenue Agency ("CRA"). If you don't agree with the reassessment, you must file a notice of objection within 90 days from the date of the notice of reassessment.
This timeline is very important as it becomes more difficult to object after the 90 day period is ended. Sometimes, you can get an extension of time of another year, but it is not guaranteed. Past the 90 day plus one year deadlines, there is almost always no chance to object. This is why it is important to contact a tax lawyer immediately for help.
A tax lawyer can help with the notice of objection as you will need to show that the CRA either made an error in the facts or the interpretation of the law. A tax lawyer can show where CRA made the errors and get the notice of reassessment adjusted in your favour.
Unfiled or Incorrect Tax Returns
Another area where a tax lawyer can help is when you have not filed tax returns for some years or where your filings were not correct. A tax lawyer can assist with filing a voluntary disclosure where the CRA has not contacted you about the missing information. The key part of a voluntary disclosure is that it is, in fact, voluntary. If CRA commences any type of enforcement action, the disclosure will not be possible.
However, there are other alternatives when CRA has commenced enforcement. A tax lawyer may be able to assist with a taxpayer relief application to reduce penalties or interest. In certain cases, when all applications and appeals have been exhausted, a person may be able to ask the government for a remission order. A remission order is essentially a forgiveness of all taxes owing. A tax lawyer can assist with all of these applications.
Going to the Tax Court of Canada or the Federal Court of Canada
Sometimes a taxpayer may do all of the above or received help from his or her accountant to make these applications. If your notice of objection is denied, you can appeal to the Tax Court of Canada. If your voluntary disclosure or taxpayer relief request is denied, a payment plan is denied, or the Minister of National Revenue makes any unreasonable decision regarding an application, a taxpayer can file a judicial review with the Federal Court of Canada.
A tax lawyer can represent you in court to ensure that your best case is presented. Further, a tax lawyer will know the proper procedures to make the court process easier.
If you come across any of the above situations or any other area where you're dealing with the CRA, please contact us and we will do our best to help you.