Removed Gross Negligence Penalties By Getting Deductions And Expenses Approved

Case Background:

The Taxpayer is a long-haul truck driver. The Canada Revenue Agency (CRA) audited him for the 2012 to 2014 taxation years, and the Taxpayer was reassessed as a result.

The Farber Tax Law Approach:

The Taxpayer had originally engaged Farber Tax Law for assistance with obtaining a payment arrangement plan for his tax debt, but we quickly realized that we could minimize his tax debt further by disputing his tax debt through the appeals process.

The Taxpayer agreed with this approach, and Farber Tax Law submitted a Notice of Objection to the CRA against the reassessments.

The Result:

With our representation, we noticed that the auditor had failed to consider the Taxpayer’s job as a long-haul truck driver, which would entitle him to an 80% deduction for meals and entertainment. Additionally, we were able to remove the gross negligence penalties that the CRA had placed on his account.

He was pleased with the reductions to his tax debt and decided not to pursue the matter further in the Tax Court of Canada. He was also able to better manage a payment arrangement with the CRA with the reduced tax debt.