Author: Igor Kastelyanets

Did you know that as a taxpayer, you have a set of important rights that safeguard you during a CRA reassessment? If you are like most Canadians, you are most likely unaware of all 16 of these rights, and how they protect you. 

But do not worry! At Taxpayer Law, we are here to clear the air and ensure that you fully understand the rights you have, so you can confidently navigate the complexities of the tax process.

Let’s Take a Look At Your Rights During a Reassessment

Whether you are facing a reassessment or simply want to know more about your taxpayer rights, understanding them is your first step towards a fair and just experience. Here is an overview of your taxpayer rights during reassessment:

Right to Receive Entitlements and Pay the Correct Amount

You have the right to receive the benefits and credits you’re entitled to and pay no more than what the law requires during a CRA reassessment.

Right to Service in Both Official Languages

You can communicate with the CRA and receive taxpayer legal support in either English or French.

Right to Privacy and Confidentiality

Your personal and financial information must be protected by the CRA during any CRA reassessment.

Right to a Formal Review and Appeal 

If you disagree with a CRA reassessment, you have the right to a formal review and appeal to resolve the issue.

Right to Be Treated Fairly and Professionally

During a CRA audit or reassessment, you deserve courteous and fair treatment from CRA employees.

Right to Accurate and Timely Information 

The CRA must provide you with complete, accurate, and timely information during any taxpayer reassessment.

Right Not to Pay Disputed Tax Before a Review

If you are disputing a CRA reassessment, you do not have to pay the disputed amount until an impartial review is complete.

Right to Consistent Application of the Law

The CRA must apply tax laws consistently during your CRA reassessment to ensure fairness.

Right to Lodge a Service Complaint

If you feel mistreated or your CRA reassessment is handled poorly, you can file a service complaint for review.

Right to Consideration of Compliance Costs

The CRA must consider the time, effort, and cost to comply with tax laws during your CRA reassessment.

Right to Expect Accountability

You have the right to expect the CRA to be accountable for its decisions regarding your tax affairs and any reassessment.

Right to Relief from Penalties Due to Extraordinary Circumstances

You may request relief from penalties or interest during a CRA reassessment if extraordinary circumstances prevented compliance.

Right to Published Service Standards

The CRA must publicly share its service standards and report its performance results annually.

Right to Be Warned About Questionable Tax Schemes

The CRA must inform you of any questionable tax schemes that could impact your CRA reassessment.

Right to Choose Representation

You can choose a representative to assist you during a CRA reassessment or audit, while maintaining responsibility for your tax matters.

Right to File a Complaint Without Fear of Reprisal

You can file a complaint or request a formal review during a CRA reassessment without fearing retaliation from the CRA.

Get Legal Support from a Tax Lawyer Today

Involving a tax lawyer can make a significant difference in navigating the complexities of tax disputes, ensuring your  taxpayer rights during reassessment are protected. When you are dealing with a CRA reassessment or just have questions about your tax obligations, our experienced tax lawyers are here to help.

Contact us today to see how we can provide personalised taxpayer legal support for your situation.

Facing a CRA audit or a CRA reassessment can be an overwhelming and stressful experience. Dealing with tax issues often feels intimidating, especially when you’re unsure of how to respond to the complex processes of the Canada Revenue Agency (CRA). 

While tax troubles are never easy, the good news is you do not have to go through them alone!

With the right guidance and taxpayer legal support, you can resolve these issues smoothly and prevent further complications down the line. But how do you know exactly when to hire a tax lawyer?

There are several situations where hiring a tax lawyer is necessary, such as: 

When You are Facing a CRA Audit

A CRA audit is one of the most nerve-wracking situations for any taxpayer. The CRA may decide to examine your financial records, business dealings, or personal taxes for various reasons. While accountants can help organise your financial documents, a tax lawyer can step in to interpret legal regulations, defend your case, and protect your rights. If the CRA audit reveals discrepancies or leads to a CRA reassessment, having a tax lawyer ensures that you have the proper legal defence. 

During a CRA Reassessment

Receiving a CRA reassessment means the CRA has reviewed your tax return and decided that changes need to be made. Whether it is an adjustment to your reported income, deductions, or credits, this reassessment can lead to additional tax liabilities. It can be tempting to try to manage the CRA reassessment on your own, but this is where a tax lawyer becomes critical. They can help you contest any unfair claims or appeal the reassessment through proper legal channels. 

Voluntary Disclosure Program (VDP)

The Voluntary Disclosure Program (VDP) offers a way for taxpayers to correct past tax mistakes without facing penalties. But navigating the VDP requires careful legal expertise, as errors in your disclosure could result in penalties or criminal charges. A tax lawyer is vital here because of the solicitor-client privilege, ensuring that anything you disclose remains confidential.

Experienced Legal Representation at Your Service

Deciding when to hire a tax lawyer can be difficult, but it often comes down to how complex your situation is. Whether it is a CRA audit, a CRA reassessment, or navigating the VDP, the stakes are often too high to handle alone. A tax lawyer provides the taxpayer legal support you need to navigate these situations successfully and avoid costly mistakes! 

At Taxpayer Law, we specialise in offering professional and experienced legal representation in tax matters. Our tax lawyers understand the intricacies of Canadian tax law and will work with you to resolve your disputes with the CRA, protect your financial interests, and give you peace of mind.

Contact us today to chat with us about taxpayer legal support for your situation.

Receiving a CRA tax reassessment can be stressful, but it is important to understand why it happened and what steps you can take to resolve it. 

When the Canada Revenue Agency (CRA) sends you a notice of reassessment, it means they reviewed your tax return and determined that adjustments are needed. This can happen for several reasons, and it is essential to know what triggers a reassessment so you can avoid issues in the future.

Why Would You Get A Notice of Reassessment

Here are the top reasons why the CRA might reassess your tax return:

1. Errors in Reporting Income

One of the most common reasons for a CRA audit or tax reassessment is simple mistakes in reporting income. If you forget to include earnings from a side job or investment income, the CRA will notice the discrepancy.

2. Incorrect or Overlooked Deductions

Claiming deductions can save you money, but claiming the wrong ones can raise red flags. For example, if you claim a home office deduction but do not meet the criteria, you could end up with a notice of tax reassessment. On the other hand, if you forget to claim legitimate deductions, you might miss out on tax savings! It is a delicate balance!

3. Missing or Incomplete Information

Sometimes the CRA needs more information to verify your return. This could be because of missing receipts for expenses or discrepancies between your reported income and what your employer or financial institutions have provided. When the CRA notices inconsistencies, they may initiate a tax reassessment.

4. Misreported Investment Gains

If you have sold investments or received income from stocks or mutual funds, it’s important to report any capital gains or losses accurately. Failure to do so is a common reason for a tax reassessment.

5. Selection for a CRA Audit

Even if you file your taxes correctly, your return may be randomly selected for a CRA audit. Audits can uncover errors or overlooked details, leading to a reassessment after the audit concludes.

You Can Disagree With Your Notice of Reassessment. What to Do Then?

If you receive a notice of reassessment, the first step is to review it carefully. If you agree with the CRA’s findings, you can make the necessary payments. However, if you disagree, you have the option to file a tax appeal, and we are here to help! 

At Taxpayer Law, our team of experienced tax lawyers is here to help you navigate the reassessment process. We can assist with gathering documents, reviewing your case, and representing you during any tax dispute appeals process.

When you are facing a CRA audit or tax reassessment, contact us today to chat with a tax lawyer about your situation.

Dealing with a CRA tax reassessment can be an overwhelming and stressful experience. When you receive a notice of reassessment, it is natural to feel anxious about how to proceed. 

Many Canadian taxpayers, in their attempts to resolve the issue quickly, often make simple yet costly mistakes. The best way to protect yourself is by staying informed and taking the right steps.

Avoid These Common Mistakes

Here are five common mistakes to avoid if you find yourself facing a CRA audit or tax reassessment:

1. Failing to Report All Streams of Income

One of the most common errors that triggers a tax reassessment is failing to report all streams of income. Whether it is freelance work, rental income, or earnings from investments, any unreported income can lead to serious consequences. The CRA has ways of cross-referencing information, so always ensure you report every dollar you earn.

2. Not Updating Personal Information

Another common mistake is not keeping the CRA updated with your current personal information. Whether it is a change in address, marital status, or dependents, failing to update your personal details can lead to miscommunication and delays. This can trigger a CRA audit or result in a tax dispute appeal if incorrect information affects your tax return.

3. Making Claims for Personal Expenses

It is important to clearly distinguish between personal and business expenses. While you may think you can claim personal expenses as deductions, this can lead to a red flag with the CRA. Ensure that you are only claiming legitimate business expenses and that you are following the appropriate guidelines for deductions like home office or vehicle-related expenses.

4. Not Keeping Records of Income & Expenses

Accurate and detailed record-keeping is key to preventing a tax reassessment. Without proper documentation of income, expenses, and deductions, you’ll have a harder time proving the validity of your claims in the event of an audit.

5. Ignoring Deadlines or Not Seeking Professional Help

Ignoring CRA deadlines or attempting to handle a tax appeal on your own can create bigger problems. The CRA operates on strict timelines, and missing a deadline could limit your options.

Tax Lawyers: Your Best Allies When Dealing with CRA Tax Reassessments

When it comes to navigating the complex world of CRA tax reassessments, our tax lawyers are here to help. At Taxpayer Law, our experienced tax lawyers are here to help you avoid these mistakes and provide the support you need during a CRA audit or tax reassessment. Remember, you do not have to go through this process alone! 

Get in touch with us today to chat with a tax lawyer about CRA audits, notices of reassessment, tax dispute appeals, and other CRA-related issues. We are here to provide expert assistance in resolving your tax issues and protecting your financial future.

Taxes can be stressful, especially when the possibility of a CRA audit or tax reassessment is hanging over your head. It is completely understandable to feel anxious or concerned about the accuracy of your filings, but taking the time to do things right can save you from a lot of headaches down the road.

When it comes to your taxes, honesty is always the best policy. Making sure your returns are accurate and transparent is key to avoiding issues like a notice of reassessment.

At Taxpayer Law, we understand how overwhelming it can feel when you are dealing with the CRA, but there are practical steps you can take to protect yourself from future reassessments. It all starts with education and a commitment to staying organised.

4 Tips to Avoid CRA Tax Reassessment

Here are some key tips to avoid common audit triggers:

1. Accurate Income Reporting

The CRA pays close attention to income discrepancies. Ensure that all your income sources, including freelance work or side jobs, are accurately reported. If you under report your earnings, even by mistake, you could be flagged for a CRA audit.

2. Do Not Go Overboard With Deductions

Claiming excessive deductions is a red flag for the CRA. Whether it is home office deductions or vehicle-related expenses, make sure you are only claiming what is reasonable for your situation. Going overboard with these numbers can increase your chances of facing a tax reassessment.

3. Respond Promptly to the CRA

If the CRA reaches out for more information or clarification, it’s important to respond quickly. Ignoring their requests can lead to bigger issues, like a full-blown audit or tax appeal, down the road.

4. Keep Detailed Records

One of the most effective ways to protect yourself from a tax reassessment is by keeping thorough and accurate records. Proper documentation of your income and expenses will help ensure your returns are correct and give you solid proof if the CRA questions you.

Contact Experienced Tax Lawyers

If you receive a notice of tax reassessment, need help with a CRA audit, require assistance with a tax dispute, or find yourself in some other kind of CRA dispute, having a skilled tax lawyer on your side can make all the difference. A tax lawyer understands the intricacies of tax law and can navigate the complexities of the CRA audit process, helping you avoid costly mistakes. They know how to effectively communicate with the CRA, ensuring that your rights are protected while working to resolve your issue as smoothly as possible. 

At Taxpayer Law, we are here to provide you with the support with taxes you need, guiding you through complex tax laws and protecting your rights.

Do not wait until things get complicated, reach out to us today!