Succession Tax Planning for Family Businesses

Barrett Tax Law is a Canadian tax law firm that represents individuals and businesses in disputes with the Canada Revenue Agency and in tax planning. The practice covers CRA audits and reassessments, Notices of Objection, appeals to the Tax Court of Canada, the Voluntary Disclosures Program, tax-debt and collections matters, director and derivative (section 160) liability, and GST/HST disputes.

On the planning side, the firm advises owner-managers and incorporated professionals on corporate structure, the Lifetime Capital Gains Exemption, estate freezes and succession, and Canada–U.S. cross-border issues. Because tax lawyers can assert solicitor-client privilege, a tax lawyer is often retained where an accountant cannot protect sensitive communications. Initial consultations are free.

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.

A tax lawyer focuses on the legal side of tax — disputes, litigation, and the structuring of transactions in light of the law and anti-avoidance rules. That includes representing taxpayers in CRA audits and objections, appearing at the Tax Court of Canada, defending penalties and director or derivative liability, and designing reorganizations such as section 85 rollovers and estate freezes.

The most practical distinction is privilege. Communications with a lawyer are generally protected by solicitor-client privilege, while communications with an accountant generally are not and can be demanded by the CRA. Where the facts are sensitive or the matter could become contentious, that protection matters.

Lawyers and accountants often work together — the accountant on the numbers and filings, the lawyer on strategy, privilege, and the legal record. Barrett Tax Law regularly coordinates with a client's existing accountant.

It depends on your numbers and your tolerance for risk. A sole proprietorship is the quickest and least expensive structure to start and run: there is no separate tax return, and you simply report the business profit on your personal T1. The trade-offs are that all of the profit is taxed in your hands in the year it is earned, and there is no liability shield — if the business is sued, you are sued.

A corporation is a separate legal person. It can shield your personal assets from most business liabilities, and a qualifying Canadian-controlled private corporation pays a much lower rate on active business income up to $500,000 (roughly 12.2% in Ontario), which lets you leave surplus profit in the company on a tax-deferred basis. A useful rule of thumb: if your business reliably earns more than you need to live on, a corporation is often the sensible choice; if there is no surplus at month-end, the simplicity of a proprietorship may win.

A free consultation can help you weigh the structures against your actual situation before you commit.

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.

Barrett Tax Law is a Canadian boutique tax law firm that represents individuals and businesses in their dealings with the Canada Revenue Agency. The firm's work spans CRA audits and disputes, voluntary disclosures, Tax Court of Canada litigation, collections matters, and corporate and estate tax planning.

The firm was founded in 2009 and has represented many thousands of clients across Canada. Its head office is in Concord, Ontario (Vaughan), and it serves clients nationwide. You can reach the firm toll-free at 1-877-882-9829 (1-877-8-TAXTAX).

Most matters qualify for a free, no-obligation consultation, and most are quoted on a fixed-fee basis once scope is understood, so the cost is known before work begins.

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.

First, identify what the letter is and what it requires. A CRA letter may open an audit, ask for documents, propose adjustments (a proposal letter), confirm a reassessment, or start collection action — and each carries its own deadline and its own implications. Note any date by which a response is required.

Do not ignore it, and be careful about responding off the cuff. What you say and produce can shape your later objection and appeal position, and casual admissions can be difficult to undo. If the letter proposes adjustments or penalties, or if significant amounts are involved, get advice before responding.

A free consultation can help you understand the letter, the deadline, and the right next step. Acting early — while options are still open — is usually far better than waiting until a deadline is near.

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.

Yes. Most matters qualify for a free, no-obligation consultation with an experienced tax lawyer. The consultation is a chance to describe your situation, get a clear sense of the options and likely path, and receive a fee structure in writing before you commit to anything.

You can reach the firm toll-free at 1-877-882-9829 (1-877-8-TAXTAX) to arrange a confidential consultation. The head office is in Concord, Ontario (Vaughan), and the firm serves clients across Canada.

Yes. Communications between you and your lawyer for the purpose of obtaining legal advice are generally protected by solicitor-client privilege, one of the most strongly protected confidences in Canadian law. In practical terms, the CRA generally cannot compel disclosure of privileged communications.

This is an important difference from working with an accountant or other non-lawyer representative, whose communications and working papers can generally be demanded by the CRA. Where the facts are sensitive — unreported income, offshore assets, or potential penalties — that protection can be significant.

Privilege has limits and can be waived inadvertently, so it should be handled with care. A consultation can explain how privilege applies to your particular situation.

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.

As a general rule, keep your records for six to seven years. Under the Income Tax Act the six-year period runs from the end of the tax year the records relate to. Although the Canada Revenue Agency can ordinarily reassess income tax for three years and GST/HST for four, keeping records a little longer is wise because the agency can reach back further where it suspects fraud or gross negligence. Records tied to buying or selling property should be kept indefinitely, because you need them to compute the correct capital gain on disposition.

On receipts: strictly speaking, the Income Tax Act does not require an original receipt to claim most business expenses — but if an auditor asks for the original and you can only produce a photocopy, scan, or credit card statement, the expense may be denied. The practical answer is to keep everything an auditor might want, including originals (plus a scan, since some receipts fade), and to back up your records offsite.

A Canadian tax lawyer advises on and litigates tax matters. On the dispute side, that means representing taxpayers in CRA audits, filing Notices of Objection, and appearing at the Tax Court of Canada and the Federal Court — work that requires legal training and rights of audience an accountant does not have. On the planning side, it means structuring transactions, corporations, and estates to be tax-efficient and defensible.

Two features distinguish a tax lawyer from an accountant: solicitor-client privilege, which protects sensitive communications from disclosure to the CRA, and the ability to argue a case in court. Tax lawyers and accountants frequently work together, with the lawyer handling disputes, privileged questions, and complex planning while the accountant handles compliance.