Relationship of Tax Audit & Tax Collection – Canadian Tax Lawyer Analysis

Relationship of Tax Audit & Tax Collection – Canadian Tax Lawyer Analysis

Tackling tax problems is difficult enough and to add to that if you are dealing with CRA auditors or CRA tax collectors, professional representation from our team of the best Canadian tax lawyers is an absolute necessity. CRA’s tax auditors and tax collectors not only have different functions but also have different power assigned to them. Tax auditors from CRA gather information to determine whether your tax returns fully reflect your obligations under the Canadian Income Tax Act whereas the  CRA tax collectors take your tax debts as given and use every means they have available to collect money from taxpayers.

Since the Canadian income tax system is based around self-assessment a taxpayer has the right to representation at all times  and for this purpose there is no one better than our Canadian tax lawyers who represent Canadian individual taxpayers as well as corporations who are undergoing tax audits of business or personal income. Every taxpayer is required to file an income tax return based on which a tax assessment is issued by CRA. Through tax audits tax returns are subjected to additional scrutiny and the CRA auditors are granted with extensive powers to compel taxpayers to provide documents and information to the CRA. CRA tax auditors will schedule a meeting to show up at your place of business to view your records in order to audit your return. If you need assistance dealing with a tax audit, please contact our top Canadian tax lawyers for tax help.

CRA tax collectors have broad powers of enforcement and can seize assets without a court order.  For example, section 225 of the Canadian Income Tax Act gives CRA tax collectors the power to seize goods owned by the taxpayer for sale at public auction to cover the outstanding tax debt. If you are receiving letters from CRA indicating that they may decide to seize your goods, you should immediately contact one of our experienced Canadian tax lawyers. Once you have been issued a tax assessment or reassessment it does not matter if you have been assessed taxes incorrectly. Until the tax court or CRA vacates the tax assessment, you owe money to CRA. The tax collections department of the CRA takes the tax amount for which you were assessed as correct and owing, and uses the powers it is granted under the Income Tax Act to collect the full amount of all outstanding assessed tax amounts, including any interest or penalties.

CRA tax auditors and tax collectors are given extensive powers to carry out their respective mandates. No matter whether you are receiving requests for documents from auditors or garnishment notices from collectors, our top Vancouver tax lawyers can help you deal with CRA. If you have just received an income tax assessment from CRA and need help, please contact us as soon as possible.

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