Conducted Investigation Analyzing taxpayer’s filings And Account Disclosures

Case Background:

The taxpayer was an employee in the mining industry, working on-site for much of the 2014 and 2015 taxation years. The taxpayer was a Status Indian and was told he was working on reserve. Normally, any income earned under those conditions would be tax exempt.

In 2016, the taxpayer was suddenly reassessed and as result of this he got a significant tax bill. He was unsure how this had occurred and decided to engage the Farber Tax Law team to determine the cause of this tax issue, and to get a better understanding of the options available to fix the aforementioned situation.

The Farber Tax Law Approach:

Farber Tax Law spent significant time deciphering and analyzing the taxpayer’s filings and the notes on his account following disclosure from the Canada revenue Agency (CRA), and determined the following:

  1. that the taxpayer’s employer had initially filed their T4 returns exempting the income earned on site;
  2. that the taxpayer’s employer had, sometime late in 2015 or early in 2016, discovered that the job site was not on reserve; and
  3. had filed amended T4 returns without consulting the taxpayer.

This caused a cascade of new assessments against the taxpayer, ultimately resulting in significant tax debt, including interest.

Our report laid out all these facts along with the exact timeline of events that caused this situation. It also included a recommendation for the taxpayer to seek out taxpayer relief, and to arrange a payment plan on the outstanding tax debt with the CRA.

The Result:

Because of our investigation, the taxpayer could fully understand the state of his affairs and was able to properly orient himself in his negotiations with the CRA.