Free Tax Seminars

Winning Tax Disputes - Know Your Rights

D. Laurence Armstrong an experienced Tax Litigator presents free tax seminars on request.

All aspects of tax disputes will be covered. Learn how to protect your rights. Don't be intimidated. Don't be misinformed. CRA are NOT always right. There will be time scheduled for questions.

Seating is limited. Call 1-866-LOOPHOLE (566-7465) or email for arrangements.

We currently have no seminars planned due to Mr. Armstrong's busy court schedule.

Frequently Asked Questions

What is the process with CRA?
What is the next step?
Can I be forced to pay the amout CRA says I owe?
Should I pay the amount of tax even though I don't have to?
While under appeal can members be harassed by CRA?
What does "Statute Barred" mean?
Requests for Waivers.
Section 231.2 Demands.
If I sign a Waiver - How long does it last?
Can CRA collect the Tax during the 90 days after the Notice of Reassessment?
If I have filed a Notice of Objection, can CRA withhold my tax refunds?

What is the process with CRA?
When CRA issues a formal reassessment, taxpayers have up to 90 days to file a Notice of Objection. That ends the involvement of the Audit (verification and enforcement) Department and moves the file to the Appeals Division who are empowered to "vacate, vary, or confirm" the reassessment. In effect the Appeals Department conducts a second albeit internal review of the file.
What is the next step?
If taxpayers are dissatisfied following the review at the Appeals Division they can file a new appeal to the Tax Court of Canada.
http://www.tcc-cci.gc.ca/
Can I be forced to pay the amout CRA says I owe?
No. Taxpayers who file Objections to the Appeals Department or appeals to the Tax Court of Canada are exempt from any collection activities by CRA unless they have first obtained a Court Order from the Federal Court of Canada. http://www.fct-cf.gc.ca/ (see section 225.1 Income Tax Act - http://laws.justice.gc.ca/en/i-3.3/text.htm
Should I pay the amount of tax even though I don't have to?
That is a question that each taxpayer has to decide on his or her own with the advice of advisors. Generally speaking, if the amount is not paid interest will continue to accrue at the statutory rate, recently at around 5%-5.5% and varying with the Bank of Canada rate. If the amount is paid however, and it is determined that the tax was not owing, then CRA will only refund a much lower rate of interest - usually there is a spread of almost 2%. It simply becomes an economic decision. If you have the money and you are earning less than 5.5% then perhaps you should pay. If you don't have the money it probably doesn't make economic sense to borrow from the bank to pay in order to pay CRA. But again, each taxpayer must decide on their own.
While under appeal can members be harassed by CRA?
Once the Notice of Objection has been filed there is an internal "stop code" that is noted on the taxpayers file at CRA that is supposed to stop any activities by the Collection Department. Threatening letters from Collections after the Objections have been filed should not be sent. If taxpayers receive such letters they should check with the Collections Officer to ensure that they are aware the matter is under Objection. Individual Collection Officers can be referred to CRA Appeals who will confirm the matter is under Objection.
What does "Statute Barred" mean?
Pursuant to the Income Tax Act the normal period of assessment is three years. If a Return was filed for the 1999 tax year, for example in April of 2000, and assessed (received and acknowledged by Revenue Canada) a couple of months later, say by July 1st, then the three years would run from July 1, 2000. After July 1, 2003 CRA cannot reassess the file unless they allege that the taxpayer was guilty of some misconduct or gross negligence in preparing the Return, in which case they are able to bypass the three-year limitation.
Requests for Waivers.
The normal period for reassessment is 3 years. As that time approaches, Taxpayers are often requested to provide a Waiver, allowing the Statute Bar period to be extended indefinitely. CRA threatens they will reassess unless the Waiver is signed. In almost every instance, they are going to reassess anyway - the Waiver just gives them more time to gather information to be used against you. The decision as to whether to provide a waiver or not should be made in consultation with your lawyer.
Section 231.2 Demands.
Any demand for information specifically made pursuant to s. 231.2 of the Income Tax Act must be dealt with immediately, as there are conviction consequences for a failure to do so. Any Taxpayer receiving a s. 231.2 Demand should immediately seek professional assistance from their accountant or lawyer, or contact our office for assistance from Laurie Armstrong.
If I sign a Waiver - How long does it last?
Waivers are open-ended and remain in effect until the Taxpayer revokes it in writing. See the notation on the top of the Waiver provided to you by CRA. CRA will not accept waivers if you try to write in a time limit. They give the Agency a great advantage by allowing them as long as they want to find new reasons to reassess you. If you have already signed and returned a Waiver, you may wish to send in a Revocation of Waiver, which will take effect 6 months from the date you deliver it to CRA.
Can CRA collect the Tax during the 90 days after the Notice of Reassessment?
No, but they can and often do try. Taxpayers have 90 days to file a Notice of Objection, and collections are frozen during that time period. However, the Agency will often send a demand for payment, or Statement of Account, seeking payment. They can simply be ignored during the first 90 days.
If I have filed a Notice of Objection, can CRA withhold my tax refunds?
No. Once a Notice of Objection is filed, the tax "debt" is removed from your Statement of Account (it may show as "amount in dispute"), and if you are entitled to a refund in a particular year, you should get it.