Many people question if they should get a tax lawyer, but it's hard for them to find an answer. A tax attorney isn't only necessary if you have a dispute with the CRA, they can help you whenever you need their expertise.

Hopefully, by the end of this article, you'll have the answer to your question. Below you'll find tips to help you if hiring a tax lawyer is something you need to do.

Sooner Rather than Later

Doing taxes isn't something many people enjoy, but if you think you might need the assistance of an attorney, it's better to contact them sooner rather than later. Waiting too long to get advice decreases the amount of help a lawyer can provide. 

Though these services are often more expensive than that of certified specialist taxation experts, advice from an attorney has proven to be beneficial. They can save you money and prevent costly fixes in the long run. A good lawyer will work well with the other advisors on your team. It won't hurt to reach out to an attorney, and they'll let you know if they can help or refer you to someone who can.

Sometimes a Lawyer is Needed

Accountants are tax experts who help people with their services. Tax lawyers are also experts in their field, but they aren't a replacement for an accountant. A certified specialist should be the first person you go to with tax questions. 

If you have a question that's out of your accountant's expertise or is legal, they'll sometimes contact a lawyer on your behalf for assistance. Some accountants have certifications in tax planning that give them similar training to tax lawyers. For this reason, many people wonder what the difference is between a tax lawyer and an accountant.

The Differences

Tax attorneys need to understand tax laws and blend in different legal areas that often intersect, such as insurance, litigation, wills and estates, property, and trust, to name a few. At the same time, accountants don't have the same legal knowledge. They often have limited expertise in this area and recognize when a lawyer is needed to fill in.

Tax Planning

Tax laws change often; some things that the CRA sanctioned in the past are no longer allowed. Since tax lawyers keep track of changes in these laws, they can help you and your advisors understand what the CRA finds to be abusive or aggressive so that your advisors can make a plan to get you tax-efficient results.

Planning to minimize your taxes isn't an aggressive strategy. In Canada, you're encouraged to take advantage of deductions and credits. The government understands peoples' needs for flexibility in their affairs, so there are many tax-free transfers available that aren't considered aggressive. However, the worst plan you can have is no plan at all. A tax lawyer can give you advice for your plan that can include some of the following:

  • Update and view your estate documents regularly

  • Organize your finances to complement your life and business goals 

  • Meet with your accounting advisors to see if you qualify for any deductions or credits

  • Review your circumstances with your lawyer to see if there are any revisions needed

Bringing in a Litigator

Some attorneys will help you with litigation matters representing you in front of different levels of government, courts, and tribunals. Tax litigators will represent you before provincial and federal courts if the CRA is assessing you. Like a lawyer, it's best to consult a tax litigator sooner rather than later. They have the expertise to help you with any disputes by saving you money on expensive litigation and possibly keeping you out of the courtroom.

Conclusion

You should seek help for any tax problem you have as soon as possible. These problems won't go away on their own, and possible solutions decrease the longer you wait. Reach out to a professional for any tax matter and planning.