Everyday thousands of Canadians are reassessed for more tax by the Canada Customs and Revenue Agency. Most Canadians do not know their rights under the law, and even if they do, enforcing those rights takes knowledge and experience. I have that experience having handled income tax disputes at the objection and appeals stage and having appeared at the Tax Court of Canada and worked on appeals at the Federal Court of Appeal level. If you have been reassessed by the Canada Customs and Revenue Agency and feel that they have wrongly added to your tax burden, I can help.

Canada has a very complicated web of laws, regulations, and treaties governing the imposition of Income Tax in Canada. It also has an advanced system to resolve disputes over income tax (see below). Unfortunately, the complexity of the laws and dispute resolution process in Canada requires the help of a lawyer trained specifically in these matters if you want to successfully resolve your dispute. Many people trust their accountants to represent their interests in these matters. However, accountants are not generally trained to resolve tax disputes. Just as you would not buy bread from your butcher, you should not trust your tax problems to anyone but those with training specifically in this field.

The CRA and Provincial tax authorities have an internal appeals system, usually by way of a notice of objection for taxpayers who do not agree with the results of an examination of their tax returns or with other adjustments to their tax liability. In addition other things can be appealed. Among them are assessments or reassessments penalties, and other claims. By engaging our services, you can be assured that your appeal will be persuasive because we know how to present it with legal argument citing tax authorities.

It is unwise to use a representative lacking in specialized tax training at this point because he/she could make errors that could be fatal to your case if a decision to appeal to the tax court is later made.

TAX COURT LITIGATION
If a citizen disagrees with the CRA, the citizen can appeal the CRA's decision to the Tax Court of Canada. The citizen taxpayer has 90 days to to file a Notice of Appeal at the Tax Court. This is a legal document which requires an experienced lawyer to draft it in order to ensure the maximum possibility for success. After the drafting of the Notice of Appeal there are a variety of legal issues which must be dealt with in and require legal counsel including the actual trial.

As a lawyer with experience specifically in Tax Court litigation, I can represent you and aid you in navigating the difficult waters of resolving your tax dispute.

SEIZURES
You usually have 30 days from the date of the Notice of Assessment or Re-assessment is issued to pay in full or make a payment arrangement. Ignoring this right, delay or doing nothing only makes matters worse. I can analyze your situation to find the best course of action for you. Once the 30 days has passed, the tax department does not have to give any further notice before seizing your assets, including your chequing accounts, savings accounts, wages, RRSP's and the family home.

If you contact us early we may be able to secure a temporary freeze on further collection action, to have sufficient time to analyze your situation and determine the best course of action. This could lead to an acceptable Offer of Settlement.

Resolving Your Tax Dispute*
Canada has a very orderly tax dispute resolution mechanism. If you disagree with your reassessment or believe that you may have legal reasons for fighting the reassessment you should file a notice of objection. The CCRA will accept either a letter indicating the basis of your objection or the form T400A (click here) that they have prepared. Generally, individuals have 90 days from the date of mailing of the Notice of Assessment or Reassessment to file the Notice of Objection.

Once the objection has been filed an Appeals officer will be assigned to your case. In theory, the Appeals procedure is supposed to be an impartial review by the CCRA's Appeals officer of the CCRA Auditor's work. You or your representative now has a chance to make submissions to the Appeals officer, and you should take advantage of the opportunity. At this stage an investment in a knowledgeable lawyer advocating on your behalf may significantly reduce costs later on. If you can resolve your dispute with the CCRA at this stage you will avoid the significant costs associated with moving to the next stage of the dispute resolution process - an appeal to the Tax Court of Canada.

Depending on the amount at stake you may qualify for either the Tax Court's Informal Procedure or the General Procedure. Only the taxpayer, or anyone appoint as the taxpayer's representative may appear on your behalf in the Informal Procedure while only the taxpayer or a representative lawyer may appear in the General Procedure.

Despite the efforts to make the Informal Procedure less expensive and more accessible the help of an experienced lawyer can make all the difference in litigating your case. Certainly, in the General Procedure and in all likelihood the Informal Procedure as well the CRA will have a trained Department of Justice lawyer to defend the government's actions. Under these circumstances you need an experienced advocate to protect your interests. If you are being audited or have already been assessed for more tax than you think you should pay consider retaining a lawyer experienced in tax litigation to help you.

*This information is distributed on the understanding that it does not constitute legal advice or establish the solicitor/client relationship by way of any information contained herein. The contents are intended for general information purposes only and under no circumstances can it be relied upon for legal decision-making. This newsletter is current only as of the date above and does not reflect any subsequent changes in the law. Readers are advised to consult with a qualified lawyer and obtain a written opinion concerning the specifics of their particular situation.