Tax court appeals arise in the Federal Tax Court after a decision is made by the Canada Revenue Agency. The taxpayer challenges the CRA’s tax assessment of liability, interest and penalties. We have handled such appeals and suggest you should talk to us if you are in such a situation.
Tax Court appeals involve challenging the assumptions made in assessments of particular tax years in respect of accounting aspects of tax returns. These appeals often involve legal interpretation of the tax code. This analysis can further involve principles of interpretation of statutes and codes in general, rather than just the tax code.
A further level of appeal can be made to the Federal Court of Appeal. After this stage, the only other court application is a leave to appeal application to the Supreme Court of Canada. Most cases are finalized at the first level of the Tax Court. GST assessments are also challenged in this manner. There are two recognized avenues in the process of appeals: Informal Procedure for amounts up to $12,000 in issue, and General Procedure for amounts exceeding $12,000.
All information exchanged with the lawyer is subject to privilege and remains confidential. This information is not available to Canada Revenue Agency under the law. The privilege is not recognized with respect to information exchanged with any other professional including accountants.
Tax appeals are technical and involve case law analysis which is widely supported in decisions of the Tax Court. Having a lawyer in a tax court is of considerable benefit.