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.
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.