Stuck with Someone Else's Tax Bill? Capital Tax Law Can Help!
Facing third-party tax liability in Canada? Don’t panic! Capital Tax Law helps individuals & businesses minimize liability & resolve CRA issues. Free consultation!
At Capital Tax Law, we understand the complexities of Canadian tax law, especially when it comes to third-party tax liability. Unexpected tax assessments from the Canada Revenue Agency (CRA) can be stressful and confusing. If you’ve been notified that you’re liable for someone else’s unpaid taxes, you don’t have to face the CRA alone.
What is Third-Party Tax Liability?
In some situations, the CRA can hold you responsible for the unpaid taxes of another person or business. This is known as derivative tax liability. There are two main Tax Legislations in Canada that enforce third-party liability:
Section 160 of the Income Tax Act :
This section applies to situations where assets have been transferred at less than fair market value (FMV) between non-arm's length parties. (like family members or close associates) for less than their fair market value. In such cases, the CRA may assess the recipient of the undervalued asset for the unpaid taxes associated with the difference between the FMV and the actual sale price.
Section 325 of the Excise Tax Act :
This section deals with situations where a corporation fails to deduct and remit source deductions (payroll taxes) on behalf of its employees. In these cases, the directors of the corporation can be held personally liable for the outstanding taxes.
Why Choose Capital Tax Law for Third-Party Tax Liability?
Facing a third-party tax assessment can be overwhelming. Here’s how our experienced tax lawyers can help:
Review Your Assessment :
We'll meticulously analyze the CRA's assessment and determine the legal basis for their claim.
Explore All Options :
We understand the complexities of the Income Tax Act and the Excise Tax Act. We'll explore all available legal options to minimize your liability, including filing objections and negotiating settlements with the CRA.
Protect Your Rights :
We'll advocate for your rights and ensure you're treated fairly throughout the process.
Save You Time and Money :
Navigating the CRA's procedures can be time-consuming and complex. We'll handle all communication with the CRA on your behalf, freeing you to focus on your business or personal affairs.
Peace of Mind :
Our team of tax professionals will be by your side every step of the way, providing the guidance and support you need to resolve the situation effectively.
Don't Wait to Take Action
Ignoring a third-party tax assessment won’t make it go away. The CRA can impose significant penalties and interest charges on outstanding tax debts. By taking action promptly, you can potentially minimize your liability and reach a favorable resolution.
Contact Capital Tax Law Today for a Free Consultation
At Capital Tax Law, we’re committed to helping individuals and businesses navigate the complexities of third-party tax liability. Contact us today to schedule a free consultation and discuss your situation. We’ll work tirelessly to protect your interests and achieve the best possible outcome.