When a taxpayer is in disagreement with an assessment issued by taxation authorities, he has the right to contest such assessment before the administrative courts of the various taxation authorities. It is sort of an administrative appeal.
Whether an individual is or is not a resident of Canada is, for tax purposes, a fundamental question. In Canada, a resident, within the meaning of taxation laws, must pay taxes on his worldwide-source income
Tax laws in Canada are based on the concept of residence. Continue reading
In case of Tax evasion or dodging or of unreported work, various laws provide for the imposition of large penalties and even criminal prosecution before the Courts, resulting in very important fines and even imprisonment.
Taxation authorities are known to be efficient, quick and powerful when it comes to the collection of taxes owing…Various tax laws grant astronomical powers to collection officers, and the latter will not hesitate to make use of them in a timely manner.
When a taxpayer neglects to file his income and/or other tax returns, taxation authorities issue arbitrary assessments based on existing data that is more or less accurate.
While taxation authorities have full powers to issue arbitrary assessments, it appears that such assessments are often wrong and higher, in favour of such taxation authorities.
In such case, it is in a taxpayer’s best interest to immediately file the missing returns and undertake the necessary discussions in order to remedy the situation.
The Canada Revenue Agency is required by law to give a taxpayer a complete copy of his tax file.
It is true that under various laws respecting access to information, taxation authorities have the obligation to cooperate and to provide your file information to you. Many taxpayers are not aware of these provisions; however, they are of essential importance in a tax dispute.
The Canada Revenue Agency has launched a new programme commonly known as “voluntary disclosure”.
Through this type of programme, a taxpayer who has failed to report income or to make payments for previous years can file an application with Canada Revenue in order to “voluntarily update” his file and avoid the assessment of penalties and/or criminal prosecution.
A tax audit is the procedure whereby taxation authorities ensure a taxpayer’s legality and compliance with tax laws.
As the taxation system in Canada is based on the principle of self-assessment, it is important for taxation officers to have the possibility to audit a taxpayer’s accounting books, records and other such documents in order to ensure compliance with the law, including make sure that what is reported is a reflection of reality.