Tax lawyers are highly trained and strategic thinking practitioners of law, offering tax consultation and tax planning to assist individuals, small businesses, corporations, charities, and institutions in the following main areas:
- negotiate tax conflicts with the CRA
- provide tax planning advice involving reorganization and restructuring to reduce tax obligations
Resolving Tax Disputes with the Canada Revenue Agency
Tax lawyers offer consultation and tax services to ensure that individuals, corporations, small businesses, charities, and organizations do not have to deal with unpleasant tax conflicts with the CRA.
If a tax issue does arise, a tax lawyer will help to mitigate the consequences. He may help clients file reports for undeclared income through the Voluntary Disclosure Program so as to avoid penalties for any errors or omissions made on one’s tax return. Or she may help negotiate the terms of the penalty so as to avoid interest or legal action, such as bank account seizures, wage garnishments, or personal property liens.
A tax lawyer will also defend clients’ rights in the event of a CRA audit or investigation. If the lawyer deems the audit to be unfair, the lawyer can file a Notice of Objection to challenge incorrect or unfair tax assessments, or she may file an appeal to the Tax Court of Canada.
In other cases, where an assessment includes interest and penalties that are deemed to be unfair, a tax lawyer may file relief applications with the CRA to cancel the penalties and/or interest. Or he may file a rectification application in cases where a transaction was recorded improperly.
Kalfa Law’s tax department assists both individuals and businesses in their tax disputes with the CRA.
Kalfa Law 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); and
- prepare tax relief applications to reduce or eliminate penalties or interest levied by the CRA
In addition to the above, Kalfa Law offers
- accounting services to bring corporations and personal income tax returns up to date; and
- business advisory relating to tax deductions, tax forms, international trade, foreign incorporation, and tax restructuring.
Tax Planning and Restructuring to Reduce Tax Obligation
A tax lawyer will use all available legal avenues at his/her disposal to reduce the tax obligation on behalf of his/her client. 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 crystalize the capital gains and value in a family business, ensure the estimated gains tax is covered through an insurance policy so as not to lose the family business on the eventual death of the owner to satisfy the deemed disposition capital gains tax
- 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.
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.
The above is just a partial list of the many ways tax lawyers can help individuals and corporations, both small and large, save on taxes. Tax lawyers are a unique breed among lawyers: They must stay current on the shifting currents in tax law. They must be astute and flexible to ascertain which strategies are best suited in a given situation. They must enjoy the minutia and highly detailed fine points of tax law and combine this with a penchant for sharp, strategic thinking to leverage all available avenues to gain a tax advantage on behalf of their clients.
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.
You work hard for your money. Kalfa Law works hard for you to keep it.
© Kalfa Law 2019