Frequently asked questions.

Self-employed individuals, cash-business owners, real-estate flippers, large charitable donors, taxpayers with offshore assets, and high-income earners with year-over-year income changes are statistically more likely to be audited.

Yes. We routinely host audits at our office. This keeps the auditor away from staff and family, and lets us control the flow of information and documents.

A Proposal Letter is the auditor's draft assessment. You usually have 30 days to respond. This is the most important window in the audit — once it becomes a Notice of Reassessment, your only remedy is a Notice of Objection.

Generally yes, as long as the CRA has not yet contacted you about the matter you wish to disclose, the disclosure is voluntary, complete, and at least one year overdue, and involves a penalty.

If the CRA discovers the issue first, you face gross-negligence penalties (up to 50% of the tax owing), full interest, and potential criminal prosecution for tax evasion under section 239 of the Income Tax Act.

Drafting takes 2–6 weeks for most cases. CRA review typically takes 6–18 months. Interest continues to accrue until the file closes, but penalties and prosecution are off the table once you have an acknowledgement letter.

Wills handle distribution. Tax planning handles what's left after the deemed disposition on death, the capital-gains rollover to a spouse, the post-mortem pipeline, and US estate tax for snowbirds. The two work together.

A pipeline transaction lets the estate of a deceased shareholder extract corporate value as a return of capital instead of a deemed dividend, avoiding double taxation. It typically requires a holdco freeze and is most effective when planned within the first year after death.

Yes. Most cases qualify for a free, no-obligation consultation with one of our tax lawyers. During the call we'll review your situation, explain your options, and give you a clear quote if you decide to retain us.

Yes. Barrett Tax Law represents clients across Canada. We have offices and local phone lines in Toronto, Calgary, Edmonton, Fort McMurray, Ottawa, Vancouver, and Winnipeg, plus a national toll-free line at 1-877-882-9829.

Accountants prepare returns and financial statements. Tax lawyers represent you when those returns are challenged, audited, or prosecuted — and our communications are protected by solicitor–client privilege, which accountant communications generally are not.

Most CRA disputes are civil. Criminal prosecution is reserved for serious tax evasion or fraud, usually involving deliberate misrepresentation. If you have unreported income, a voluntary disclosure is one of the standard ways to reduce criminal-prosecution risk.

We typically begin work within 24 hours of being retained. For audit deadlines, Notices of Objection, and other time-sensitive matters, we move immediately.

We routinely handle 5+ years of unfiled returns. Through the Voluntary Disclosures Program — applied for before the CRA contacts you — we can usually eliminate gross-negligence penalties and limit interest exposure.