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Are Tax Lawyers and Tax Consultants the Same?

When it comes to handling your taxes you may get overwhelmed by the number of professionals offering services. Among them, tax lawyers and tax consultants play crucial roles, but they are not the same. 

Understanding the difference between the two can help you make a more informed decision when seeking assistance for your tax needs. So, what is the difference? Keep reading to find out! 

Understanding The Differences

A tax lawyer is a legal professional who specialises in all things related to tax law. Their main role is to provide legal support when you’re dealing with complex tax issues, especially those that could involve litigation. Whether you are facing a tax dispute, a CRA audit, or even criminal tax investigations, a tax lawyer’s services are essential for protecting your legal rights. 

On the other hand, a tax consultant is a professional who helps with tax planning, compliance, and strategy. They assist with preparing tax returns, ensuring that you are maximising deductions, and helping you stay on top of regulatory changes. While they do not provide legal support in a dispute, they are invaluable for minimising tax liabilities and planning ahead to ensure compliance with the Canada Revenue Agency (CRA).

When Should You Contact a Tax Lawyer?

If you find yourself facing a tax dispute or involved in any legal matter related to taxes, it is time to reach out to a tax lawyer. Tax lawyers are trained to deal with the legal complexities that come with tax issues. Whether you are fighting a CRA audit or need representation at the Tax Court of Canada, tax lawyer services are meant to guide you through the process. Their ability to interpret and apply tax law to your specific situation makes them indispensable when the stakes are high!

When Should You Contact a Tax Consultant?

If your primary concern is staying on top of your tax filings, understanding deductions, or ensuring your business is compliant with tax laws, a tax consultant can provide the expert advice you need. A tax consultant can offer strategic guidance on how to reduce your taxable income, plan for future tax obligations, and generally handle all the tax consultant services that help prevent tax problems before they arise.

At Taxpayer Law, our team of experienced tax lawyers is dedicated to providing the legal support you need during any tax dispute. Whether you are facing a CRA appeal, a tax audit, or other legal tax issues, we are here to assist. We offer tailored strategies for clients in need of tax lawyer services and will guide you through the process to ensure your rights are protected.

When you feel unsure whether you need tax consultant services or a tax lawyer, contact us today for a consultation, and we will help you determine the best course of action!

4 Benefits of Hiring a Tax Lawyer for Your CRA Tax Dispute

A CRA audit, or any tax dispute really, is enough to make anyone anxious! 

If you are currently dealing with a CRA audit or dispute, the stress can feel overwhelming. But there is no need to panic. A tax lawyer for CRA audits can offer the support and expertise you need to navigate this challenging process and come out on the other side with confidence.

When you are faced with a CRA audit or a tax dispute, you are not alone. Hiring a tax lawyer can provide peace of mind, legal protection, and a strong defence strategy tailored to your unique circumstances.

How Tax Lawyers Could Support You With Your Tax Dispute

Whether you are being asked to submit additional documents, or you are facing a reassessment, a tax lawyer for CRA audits or disputes is your best resource for ensuring that your rights are upheld and that your case is handled fairly. Here are four benefits of hiring a tax lawyer for your dispute:

1. Tax Lawyers Protect Your Best Interests

One of the main roles of a tax lawyer is to protect your best interests throughout the audit or dispute process. The CRA’s goal is to ensure that you have accurately reported your income and paid the correct amount of taxes, but mistakes can happen, and sometimes the CRA may take an aggressive stance!

2. Tax Lawyers Can Help You Save on Returns

A tax lawyer does not just defend you, they can also help you save. During the course of an audit or reassessment, a tax lawyer can pinpoint deductions or credits you might have missed, potentially reducing the amount of tax you owe. In some cases, they may be able to negotiate a settlement with the CRA, lessening your tax liability and helping you avoid significant penalties.

3. Tax Lawyers Understand the Procedure

Navigating a CRA audit requires a thorough understanding of the rules and procedures laid out by the CRA and the Tax Court of Canada. A tax lawyer is well-versed in these processes, ensuring compliance with Canadian tax laws, and legal support when needed.

If your case escalates and you need to appear before the Tax Court of Canada, having professional legal representation is crucial. A tax lawyer will not only argue your case but also present a solid defence, challenging any claims the CRA makes that are not backed by law.

Navigate Your Tax Disputes with the Support of Tax Lawyers

Handling a CRA audit or tax dispute is challenging, but it does not have to be something you face on your own. By working with an experienced tax lawyer, you will have a knowledgeable ally who will guide you through the process, protect your rights, and help you achieve the best possible outcome.

At Taxpayer Law, we are here to provide legal support, advice, and legal representation for all your CRA audits and tax disputes. Contact us today to chat with our team!

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What are Your Taxpayer Rights During a Reassessment

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.

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.

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When Should You Hire a Tax Lawyer?

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.

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.

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Top 5 Reasons for Receiving a CRA Tax Reassessment

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.