TSTP Global :: Reaching For Your Resolution Client(s) Name Address Phone: Email: Client Information:
Mobile:
Provide a copy of CRA documents •
Assessment
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Correspondence
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Re-Assessment Notice
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Other:_______________________
Income: (Provide a copy of returns and supporting papers) •
T1
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Other
Type of Tax Shelter Product Charity / Donation Business Venture Limited Partnership CPP Limited Partnership Other Specify Other: ________________________________________________________
Signature:
Date:
Signature:
Date:
Signature:
Date:
Signature:
Date:
Steps to Resolution Process: Step 1: Initial CRA letter a. Procedure
i.
Continually evaluate the clarity and accuracy of any letter from CRA a. Refer to Income Tax Act Section 231.1 to 231.5 b. Refer to Taxpayer Bill of Rights
Step 2: Notice of Reassessment a. Procedure i. Get signed authorization form. (Form # T1013) ii. Get copy of Notice of Assessment/Re-assessment iii. Get copy of filed T1 return for the year in dispute. iv. Prepare Notice of Objection (Form T400A) Must be done within 90 days of Notice of Reassessment v. Discuss with client options available to them. vi. Appeal and wait for government to rule on valuation. Interest accrues on outstanding balance. vii. Appeal but make payment of outstanding balance. Wait for government to rule on valuation. viii. Negotiate with CRA to make a settlement based on CRA’s current valuation and attempt to have interest dropped. (Prior to 2003 need to take into consideration Capital Gains that would have been claimed on the T1 that were probably not adjusted for in the reassessment.) Step 3: Appeal to Tax Court If the result of CRA’s decision is unfavourable and you wish to appeal you have 90 days from the date of receiving the decision to Appeal to the Tax Court of Canada. 3a)
INFORMAL PROCEDURE i.
For amounts under $12,000 tax and penalties. No form required but must write and state the reason for the appeal and request the Court to hear your appeal under the informal procedure.
ii. Court must reply to your appeal within 60 days of the appeal and hear the appeal no later than 180 days after the last day they have to file their reply. (A total of 240 days). iii.
The appeal can be delivered or mailed to the Tax Court of Canada along with a filing fee of $100. (Cheque is made payable to Receiver General)
iv.
The fee is reimbursed if the Court allows any part of your appeal.
v. A person can represent themselves or have another person act for them. vi.
3 b) i.
If over 50% successful in your appeal, the judge can order CRA to pay some of client’s legal costs.
FORMAL PROCEDURE
Follows formal court rules, which cover such matters as: a. Filing of an appeal b. Rules of evidence
c.
Examination for discovery
d. Production of documents ii.
Individuals can represent themselves or have a lawyer represent them.
Filing Fees: $250 for up to $49,999 federal tax and penalty in dispute $400 for $50,000 to $149,999 $550 for above $150,000 NOTE: The Court can order the unsuccessful party to pay some of the other party’s legal costs.
Step 4: Appeal to the Federal Court of Appeal A judgment of the Tax Court can appealed to the Federal Court of Appeal. This must be done within 30 days of the judgment.
Step 5: Appeal to the Supreme Court of Canada You can appeal a judgment of the Federal Court of Appeal to the Supreme Court of Canada. However, you first have to get the Supreme Court’s permission.