Come tax season, and the accountants start burning midnight oil. The demand for their services rise and they start churning out numbers. But the number of services and the level of expertise is limited to an extent. If in case you are involved in CRA action or want some services which require a higher level of expertise, you need a tax lawyer by your side. These attorneys are lawyers with a Juris Doctor (JD) degree.
These are the situations in tax planning when you may feel the need of having a tax lawyer by your side.
In case of a startup
Startups need to be registered as soon as possible and have to start paying tax. The structuring of finances can prove to be a complicated job in some cases. If there are some complex entities or tax requirements, it will not come under the accountant’s job role and description.
International business and tax laws
Not just a startup, but even conglomerates require legal advice regarding taxes. When a business decides to foray into other markets, it has to abide by various laws and regulations. These can be either generic or taxation related. A tax lawyer will ensure the organisation does not go wrong in these matters and will ensure a smooth process.
Payroll or employee taxation issues
An accountant will take into consideration the salaries paid while calculating the tax liability. An attorney will take care of all the issues arising while paying those taxes. If there are any problems with payroll in terms of management or compliance, the lawyer will take care of it.
CRA investigations
If the Canadian Revenue Agency is too interested in the functioning and finances of your business, it can be a huge problem. When the taxmen find discrepancies in your accounts and come for you, it is the tax lawyer who will defend you.
If you are being investigated for a tax fraud or any such delinquency, you need to pick the right attorney to represent you.
Estate related tax returns
In case of a large estate, it becomes difficult to monitor all its operations and activities. A lawyer will help you with the legal matters and payments rising out of the estate and its operations.
In case of a death, an attorney can also execute the will and estate of the deceased.
Attorneys are important because they understand the finer details of tax law which are sometimes not studied by an accountant. They can help you solve various problems, negotiate on your behalf and help you plan your case.
Tax laws are ever changing. It is impossible for an individual to keep abreast with them. A Canadian tax attorney will help you protect your business from these changes.