Tax Lawyer or Tax Accountant Toronto – Deciding Whom to Retain
Facing a Tax Audit? Got a tax problem? Choosing between a tax lawyer or a tax accountant Toronto depends on the kind of tax help you need. In Tax, the work of accountants and lawyers overlap, though each has exclusive practice areas. We are going to cover are tax disputes (including Tax Audit), tax planning, tax returns and forms, and voluntary disclosures.
Tax disputes can be anything from a request for information or tax audit, to litigation in court. Here, tax accountant Toronto and tax lawyer overlap. Some areas are exclusively for tax lawyers, but otherwise a tax accountant Toronto is capable. Criminal tax evasion, prosecution for failure to file tax returns, or going to tax court under General Procedure should only be handled by a lawyer. Requests for information, a tax audit, notices of objection, and tax court under informal procedure can all be handled by a tax accountant Toronto. Collection can also be handled by a tax accountant Toronto, unless the CRA is threatening to take legal action.
Tax planning may require both tax lawyers and tax accountants. When determining the best way to pay out money from your business, or planning for future distributions, a tax accountant Toronto is best. When planning a structure or restructuring, a tax accountant Toronto provides the overall plan but the implementation is work for a lawyer. Accountants provide non-legal tax opinions, but only a lawyer can provide a binding legal opinion.
Preparing tax returns and filling out forms for returns is exclusive work of a tax accountant Toronto. Lawyers lack the expertise to prepare proper returns.
When avoiding a tax audit using Voluntary disclosure, tax lawyers and tax accountants overlap. Tax accountants should be the only ones preparing your returns for a voluntary disclosure. For a proper voluntary disclosure, you will often need both a lawyer and a tax accountant Toronto. Your accountant starts the consultation process and can refer an experienced lawyer if needed.
Disclaimer: Articles are for general information only and do not constitute tax advice. They cannot be relied upon.
Sam Faris is a Toronto-based Chartered Professional Accountant who practices as an independent consultant on high-level Canadian tax matters and handling disputes with CRA.He also published an article recently in the business magazine: HERE.