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How Does a Tax Lawyer Help With an Audit?

November 03, 2022

By: Rimo Rico, Associate, Farber Tax Law

An audit is the beginning of a process that can lead to more tax debt, potential disputes with the Canada Revenue Agency (CRA), and even a hearing before the Tax Court of Canada. Hiring a tax lawyer at the beginning of an audit can save you time, money, and protect you from CRA overreach. Let’s explore how.

A tax lawyer ensures confidentiality and privilege during the audit 

A lawyer owes a duty to their clients to maintain the confidentiality of all information and communication concerning their business and tax affairs. Also, solicitor-client privilege means that except in extremely rare circumstances, a lawyer cannot be forced to reveal information you’ve shared with them. This means you can openly discuss your tax matters in complete detail with your legal counsel knowing that they will remain confidential, even after the audit is over.

Continuity of representation during the audit 

Getting a tax lawyer at the start of an audit is advantageous from a legal perspective and is also going to save you money. 

An audit is often the first stage in a dispute process with the CRA. At the end of an audit, a proposal letter will be issued to determine if there is any tax liability owed. A lawyer can advise on how to respond to it. 

An experienced tax lawyer can also identify any issues that may come up after the audit and create a legal strategy to protect your interests at each stage of the process. Engaging a lawyer to advise on your response early in the process can save time and money if you choose to object to the auditor’s findings.

Your interests will be protected 

A skilled tax lawyer can help you answer audit questions in a productive and effective manner while fully protecting your rights as a taxpayer. Through effective representation, you can aim to minimize the scope of the audit and avoid problems before they begin.  

At Farber Tax Law our focus is to ensure you are properly represented and fully supported throughout the entire process, so that your audit goes smoothly and your rights as a taxpayer are respected. If you have been audited by the CRA, contact us today for a free, confidential consultation.