Author: Igor Kastelyanets

Tax season can be a stressful time, especially if you are facing the daunting reality of owing money to the CRA. But before you let anxiety take hold, take a deep breath. You are not alone! Many Canadians struggle to meet their tax obligations, and the good news is, there are solutions available.

If you are facing a CRA tax reassessment it is time to take action!

Receiving a CRA tax reassessment can be scary, but it does not have to mean financial doom. This simply means the CRA has recalculated your tax liability, and you may owe additional funds. The key is to address the situation proactively.

What Are Your Options

You do have options in the form of tax lawyers who can provide invaluable taxpayer legal support to help you navigate tax debt and find the best solution for their unique circumstances. Depending on your situation, here is is what a tax lawyer may advise you to do:

Negotiating a Payment Plan with the CRA

The CRA is often flexible when it comes to repayment. You can set up a manageable instalment plan to pay your debt back over time.

Making a Partial Payment

Even if you can not pay the full amount upfront, every bit counts.  A partial payment can help reduce the accruing interest and demonstrates your willingness to resolve the issue.

Deferring Your Payment

In certain situations, the CRA may allow you to delay your tax payment until your financial situation improves.

Requesting Taxpayer Relief

Depending on your circumstances, you may be eligible for relief from penalties and interest. This can significantly reduce your overall tax debt. A tax lawyer can help you assess your eligibility and navigate the application process.

Considering a Consumer Proposal

A consumer proposal is a legally binding agreement between you and your creditors, including the CRA. It allows you to settle your tax debt for a reduced amount, often up to 80% less.

Bankruptcy

While bankruptcy should be considered a last resort, it can completely eliminate your tax debt, allowing you to rebuild your finances from scratch.

Contact Experienced Tax Lawyers for Legal Support

No matter the route you choose, taking action is crucial!

Tax debt can feel overwhelming and so can CRA tax reassessments, but there is help available! At Taxpayer Law, our tax lawyers can help you take strides towards a brighter financial future. Do not let tax debt control your life. Take action, explore your solutions, and find the path to financial freedom with our taxpayer legal support services.

Contact us today to get started!

When it comes to taxes, many Canadians are relieved once the tax season is over. But what happens if you fail to pay your taxes or fall behind on your obligations? Not paying your taxes may seem like an easy fix, but in reality, the consequences can be severe, with penalties, legal actions, and financial strain quickly piling up.

The Canada Revenue Agency is relentless when it comes to ensuring taxes are paid. If you do not pay your taxes, the CRA will take a series of escalating actions to recover the money you owe, forcing you to reach out for taxpayer legal support.

4 Action the CRA Could Take When Taxpayers Fail to Pay Their Taxes

Here’s how the process looks:

1. Penalties and Interest

The moment your payment is overdue, the CRA will start charging interest on your outstanding balance. This interest compounds daily, meaning the longer you wait, the more you will owe. Late-file penalties may also be applied if you haven’t filed your return.

2. CRA Notice of Reassessment

If you fail to file your taxes or pay them on time you may receive a notice of reassessment from the CRA. This means the CRA has reviewed your file and recalculated your taxes. This CRA tax reassessment not only means you will be expected to pay, but you could be penalized with additional charges.

3. Legal Actions and Enforcement

If repeated reminders of CRA tax reassessment and notices go ignored, the CRA will not hesitate to escalate matters. They have the authority to take legal actions such as garnishing wages, freezing bank accounts, and placing liens on your property. They can even seize your assets to recover the funds!

4. Court Proceedings

In severe cases, the CRA can initiate court proceedings. For non-compliance, civil charges might apply, but if fraud or tax evasion is suspected, criminal charges may follow. Convictions for tax evasion can lead to fines, prison sentences, or both! 

Failing to pay your taxes goes beyond the immediate financial consequences. The effects can ripple through various aspects of your life including reputation damages and difficulty obtaining loans. A good rule of thumb is to just simply pay your taxes! 

What To Do In The Case You Cannot Pay Your Taxes

If you find yourself in a situation where you are struggling to pay your taxes, it is crucial not to ignore the issue. Taxpayer legal support can help you navigate the complexities of tax law and find a way out of your tax problems. A tax lawyer can provide you with guidance and represent you when dealing with the CRA’s demands.

At Taxpayer Law, we specialize in helping Canadians tackle their tax issues. Our team of tax lawyers understands the challenges you face and will work tirelessly to protect your rights. If you’ve received a notice of reassessment from the CRA or are facing legal action, we are here to provide you with the support you need to get back on track.

Contact us today for a consultation!.

Few things in life are as stressful as opening a letter from the Canada Revenue Agency (CRA) to discover a tax reassessment. You may be wondering, what did I do wrong? How can I fix this? If you have made errors or omissions on past tax returns, the CRA’s Voluntary Disclosure Program (VDP) might just be the lifeline you need. 

But before you dive in, understanding the process and having the right support can make all the difference! 

What Is the Voluntary Disclosure Program?

So let’s begin with the basics: what is the voluntary disclosure program?

The CRA Voluntary Disclosure Program is designed to encourage taxpayers to come forward and correct past tax errors before the CRA catches them. It is an opportunity to address unreported income, missed filings, or incorrect information without facing full penalties or legal repercussions.

However, applying for the program is not as simple as filling out a form. To qualify, your disclosure must meet specific criteria, including: 

• Voluntary: You cannot already be under CRA scrutiny for the same issue.
• Complete: All errors and omissions must be disclosed, not just some.
• Timely: The disclosure must be made before the CRA initiates an investigation.
• Involves Penalties: Your issue must involve a penalty, such as interest on unreported income or failure to file.

Why You Need a Tax Lawyer

While the VDP may sound straightforward, navigating it without professional help can be risky. Here are some reasons why having an experienced tax lawyer by your side is critical:

• Tax laws and CRA guidelines can be confusing. Tax lawyers are trained to interpret and apply these rules to your unique situation, ensuring your application is accurate and complete.
• Even a small oversight in your VDP submission could lead to rejection–or additional scrutiny from the CRA! A tax lawyer helps reduce these risks, ensuring you meet all program criteria.
• If the CRA initiates a reassessment or has questions about your disclosure, a tax lawyer is equipped to advocate on your behalf, presenting your case professionally and persuasively.

The Role of CRA Tax Reassessment

If your disclosure involves a CRA tax reassessment, the stakes can be even higher. A reassessment can change your tax liability significantly, potentially resulting in hefty penalties. Addressing this correctly requires a deep understanding of tax law and CRA procedures, which is another reason why a skilled tax lawyer is invaluable.

Don’t wait for a CRA tax reassessment to catch you off guard. If you have made mistakes in your tax filings or suspect you might have, the Voluntary Disclosure Program offers a chance to set things right.
Contact our experienced tax lawyers at Taxpayer Law today! We will guide you through the CRA voluntary disclosure process, help you correct past errors, and ensure your financial future is secure!

Contact us today to take control of taxes.

When it comes to taxes, even small mistakes can lead to major headaches. If you have received a CRA penalty, you know how quickly things can escalate. 

The Canada Revenue Agency (CRA) is known for issuing hefty fines, and these penalties can be difficult to manage without the right guidance. Whether it is for failing to file on time or neglecting to report all your income, CRA penalties can affect your financial future, this is where a skilled tax lawyer can make all the difference!

Understanding Common CRA Penalties

Keep reading to understand more about common CRA penalties and how taxpayer legal support can help you avoid them!

1. Penalty for Not Reporting Income

Failing to report all of your income is another major issue that can result in serious CRA penalties. Whether it is extra income from freelance work, rental properties, or even investment earnings, the CRA will penalise you if you fail to report it. The penalty for not reporting income can be severe and often leads to a larger tax bill. 

If you have made this mistake, a tax lawyer in Toronto can help you amend your returns and negotiate with the CRA to reduce the penalty.

2. Failure to File Penalties

One of the most common CRA penalties comes from failure to file your tax returns on time. If you miss the deadline, usually April 30th, the CRA will charge you a late-filing penalty. The longer you wait, the higher the penalty climbs, and in some cases, it can be as high as 17% of the tax owed. 

Taxpayer legal support can provide you with tax lawyer services that help prevent this penalty, whether by filing an extension or negotiating a reduction based on your unique situation.

3. Instalment Penalties

Many people do not realise that the CRA requires certain taxpayers to make periodic instalment payments throughout the year. If you miss an instalment payment or underpay, you will face an instalment penalty. 

A tax lawyer in Toronto can assist in calculating the correct amount to pay each period, preventing any instalment-related penalties from arising. If you are already facing an instalment penalty, a tax lawyer can work with you to reduce or even eliminate the charge!

4. Penalty for False Statements or Omissions

Knowingly providing false information on your tax return or omitting details can result in significant penalties. The CRA takes tax filing seriously and penalties for false statements or omissions can include fines or even criminal charges.

Contact Us for Legal Guidance

If you find yourself in this situation, do not panic! A tax lawyer can help you correct any false statements or omissions, minimise penalties, and help avoid further legal trouble.

At Taxpayer Law, we specialise in helping individuals and businesses navigate CRA penalties and disputes. Our team of expert tax lawyers in Toronto offers the tax lawyer services you need to tackle even the most complex tax challenges. 

Whether you are facing failure to file penalties, issues related to income reporting, or any other CRA penalty, we will guide you through the process, offering taxpayer legal support every step of the way!

Contact us today to chat with our team and learn more about our tax lawyer services.

Dealing with a CRA tax dispute can be overwhelming and stressful. Whether you are facing a CRA appeal or you are worried about the potential for your case to escalate to the Tax Court of Canada, it is normal to feel lost or uncertain. 

But the good news is, with the right tax lawyer in Toronto by your side, you do not have to navigate this journey alone! Having the right support can make all the difference, giving you the peace of mind you need to move forward with confidence!

5 Aspects to Consider When Choosing Tax Lawyers

So, how do you choose the right tax dispute lawyer to help you with your CRA dispute? Here are some things that will help you make an informed decision:

1. Check for Experience

When you are dealing with something as important as a CRA appeal, experience matters. You want to hire a tax lawyer who understands the complexities of Canadian tax law and has a strong history of handling cases just like yours. Experience is especially important when it comes to CRA disputes, as a seasoned lawyer will know how to navigate the legal hurdles and communicate effectively with the CRA. 

2. Ask for References

One of the best ways to gauge the effectiveness of a tax lawyer is by asking for references or testimonials from their past clients. A tax lawyer with a good reputation will have no problem sharing stories of successful cases or clients they have helped with their CRA dispute. 

3. Proper Licensure

When hiring a tax lawyer in Toronto it is essential that they are fully licensed and in good standing with the relevant legal authorities. In Canada, tax lawyers must be members of their provincial law society, and it is important to ensure that the lawyer you are considering specialises in tax law. 

4. Upfront Rates

Legal fees can quickly add up, especially when dealing with something as complex as a CRA appeal or a Tax Court of Canada case. To avoid any surprises down the line, it is key that you have clarity on the lawyer’s rates before you start. A trustworthy tax dispute lawyer will be upfront about their fees and explain exactly what services are included. 

5. Courtroom Experience

While many CRA disputes can be resolved through negotiations or alternative dispute resolution, some cases require litigation. If your CRA appeal heads to the Tax Court of Canada, you will need a lawyer who has solid courtroom experience. Ask potential lawyers about their history in court, particularly with tax-related cases. Having a tax dispute lawyer who is comfortable representing clients in the Tax Court of Canada can give you the confidence that they can advocate effectively on your behalf if needed. 

Legal Support from Experienced Tax Layers

At Taxpayer Law, we understand how difficult it can be to face a CRA tax dispute. Our team of experienced tax lawyers is here to provide the support and guidance you need throughout the process. Whether you are going through a CRA appeal or preparing for a potential Tax Court of Canada case, we are here to help you every step of the way.

Contact us today to chat with our tax lawyers in Toronto!