Our GTA & Toronto tax lawyers offer tax consultation and planning to assist individuals, small businesses, corporations, charities, and institutions in the following main areas:
negotiation of tax conflicts with the CRA
providing tax planning advice involving reorganization and restructuring to reduce tax obligations
Resolving Tax Disputes with the Canada Revenue Agency
While there hundreds of tax lawyers in the Toronto & Greater Toronto Area, Kalfa Law stands apart in its highly specialized services that combine the best in tax knowledge and corporate commercial expertise. Our dual areas of focus complement each other to ensure our clients’ financial portfolio is strong, both now and in the long term.
One way we ensure our clients’ businesses continue to grow is by offering tax advice that ensures they remain in good standing with the CRA. Sometimes, however, clients may run into trouble with the CRA. In those instances, Kalfa Law will negotiate with the CRA to get the best possible outcome.
The Voluntary Disclosure Program
If a client fails to report income, or has made errors or omissions on his tax return, we will help to mitigate the most severe consequences by applying for the Voluntary Disclosure Program. We will help negotiate the terms of any penalties, so as to avoid interest or legal action, such as bank account seizures, wage garnishments, or personal property liens.
Kalfa Law will also defend clients’ rights in the event of a CRA audit or investigation. If we deem the audit to be unfair, we will file a Notice of Objection to challenge incorrect or unfair tax assessments, or file an appeal to the Tax Court of Canada.
In other cases, where an assessment includes interest and penalties that are unfair because of extenuating circumstances that make it impossible for the client to pay his taxes, we will file for relief applications with the CRA to cancel the penalties and/or interest. Or we may file a rectification application in cases where a transaction was recorded improperly.
Kalfa Law’s tax department will:
- help clients who face an audit;
- negotiate with the CRA to remove garnishments and liens and set up clients on a voluntary payment plan;
- file appeals with the Tax Court of Canada or Federal Court of Canada to appeal a decision made by the CRA;
- file Notice of Objections in instances where the CRA has over assessed the amount of taxes or GST/HST owed;
- prepare voluntary disclosure applications where individuals have not reported their full income so as to prevent harsh penalties;
- prepare comprehensive submissions to rebut the CRA’s denial of benefits and credits, including the Canada Child Benefit (CCB), Ontario Trillium Benefit (OTB), and Harmonized Sales Tax Credit (HSTC);
- prepare tax relief applications to reduce or eliminate penalties or interest levied by the CRA
Tax Planning and Restructuring to Reduce Tax Obligation
Kalfa Law offers tax advisory, tax planning and tax restructuring for individuals, corporations, and small businesses in Canada and internationally to achieve optimal tax saving results.
These methods may include the following:
- A s85 rollover re-organization, wherein the transfer of assets from a sole proprietorship or partnership into a Canadian corporation allows the property now acquired by the corporation to be taxed on a deferred basis.
- A s85 rollover re-organization to access corporate losses, crystallize the capital gains exemption by “purifying” the corporation to retain eligibility as a qualifying small business corporation.
- A s85 rollover reorganization involving breaking up the corporation among several shareholders.
- A s85 re-organization involving rolling certain operating assets into a sister company or setting up a holding company, which will declare and pay a dividend equal to the operating company and then loan these funds back to the operating company.
- A s86 estate freeze to ensure the future growth of the corporation is endowed to the next generation.
- Income sprinkling by an owner to a qualified family member in a lower tax bracket.
- Claiming up to 50 percent of capital cost allowance in the year that a business purchases a capital asset, depending on its class.
- Disposing of capital assets after the business taxation year to defer paying taxes on a capital gain to the following year.
- Earning income as a combination of salary, bonuses, and dividends to reduce the overall tax rate.
- Contributing to private pension plans, which are tax deductible as an expense.
- Repaying shareholder loans without interest within two corporate year ends, allowing the borrower to receive a taxable benefit for the unpaid interest.
- Drafting wills and estate plans to minimize taxation on death.
- Providing counsel on international tax laws to businesses operating overseas who want to set up businesses in Canada.
- Providing accounting services to bring corporations and personal income tax returns up to date; and
- Offering business advisory relating to tax deductions, tax forms, international trade, foreign incorporation, and tax restructuring.
The above is just a partial list of the many ways our tax lawyers in Toronto & the GTA help individuals and corporations, both small and large, save on taxes.
To ensure that you stay away from the long arm of the CRA and pay as little tax as possible, contact a qualified and experienced tax lawyer at Kalfa Law, your tax specialists in the Toronto & Greater Toronto Area.
You work hard for your money. Kalfa Law works hard for you to keep it.
-Shira Kalfa, BA, JD, Partner and Founder
© Kalfa Law 2019