Do not respond to CRA directly before speaking with a lawyer. A CRA audit letter does not mean you have done anything wrong, but how you respond from the first communication can significantly affect the outcome. Contact us immediately so we can review the notice, assess the scope of the audit, and manage all correspondence with CRA on your behalf.

Yes. If you disagree with a CRA reassessment, you have 90 days from the date of the notice to file a Notice of Objection. If the objection is unsuccessful, you can appeal to the Tax Court of Canada, and ultimately to the Federal Court of Appeal. We handle the full dispute process from the objection stage through to judicial review where necessary.

Taxpayer relief allows CRA to cancel or waive penalties and interest in circumstances beyond a taxpayer's control, such as serious illness, natural disaster, or CRA error. A successful application requires a well-documented submission grounded in the statutory criteria. We prepare and submit these applications regularly.

Transfer pricing governs how transactions between related parties in different countries are priced for tax purposes. CRA requires that such transactions reflect fair market value as if conducted at arm's length. Errors in transfer pricing can result in significant reassessments, penalties, and double taxation. We advise on transfer pricing policies, documentation, and dispute resolution.

When you cease to be a Canadian resident, you are deemed to have disposed of most of your property at fair market value on the date of departure, triggering potential capital gains tax. Pre-departure planning is critical to minimize this exposure. We advise individuals on departure tax, Form T1161 filing obligations, and post-departure Canadian tax compliance.

Foreign Accrual Property Income (FAPI) is passive income earned by a controlled foreign affiliate of a Canadian taxpayer. It is included in the Canadian shareholder's income in the year it is earned, even if not distributed. Proper structuring of offshore corporate interests is essential to manage FAPI exposure, and we advise on this regularly.

If your corporation has more than one shareholder, a shareholders' agreement is strongly recommended. It governs how decisions are made, what happens if a shareholder wants to exit, how shares are valued, and what occurs on the death or incapacity of a shareholder. Without one, disputes are resolved by default corporate law rules, which rarely reflect what the parties actually intended.

In an asset purchase, the buyer acquires specific assets and liabilities of the business. In a share purchase, the buyer acquires the corporation itself and inherits all liabilities, including hidden ones. Each structure has different legal and tax implications for both buyer and seller. We advise on which structure best serves your objectives and document the transaction accordingly.

A standard Ontario business incorporation can typically be completed within one to two business days. We also prepare all ancillary corporate records, including the minute book, organizational resolutions, share certificates, and shareholders' agreement, to ensure your corporation is properly constituted from the outset.

If you die intestate (without a will) in Ontario, your estate is distributed according to the Succession Law Reform Act. Your assets do not automatically pass to your spouse or children in the proportions you would expect, and there is no provision for common-law partners. The court will appoint an administrator through a process that can be slow and costly. A properly drafted will eliminates this uncertainty entirely.

A dual will is an estate planning strategy used primarily by business owners who hold shares in a private corporation. By separating assets that require probate from those that do not (such as private company shares), a dual will can significantly reduce the Estate Administration Tax (probate fees) payable on death in Ontario. If you own shares in a private corporation, we strongly recommend discussing a dual will as part of your estate plan.

A Continuing Power of Attorney for Property authorizes a person you trust to manage your financial affairs if you become mentally incapacitated. A Power of Attorney for Personal Care authorizes someone to make healthcare and personal decisions on your behalf. Without these documents in place, your family may be required to seek a court-appointed guardian, which is a lengthy and expensive court process.

Yes. A will can be challenged on grounds including lack of testamentary capacity, undue influence, fraud, or failure to comply with formal execution requirements. Will challenges are complex and time-sensitive. Whether you are looking to challenge or defend a will, we provide strategic advice at every stage of the proceeding.

In addition to the purchase price, buyers should budget for Land Transfer Tax (and the additional Municipal Land Transfer Tax if purchasing in Toronto), legal fees and disbursements, title insurance, home inspection, and adjustments for property taxes and utilities on closing. First-time buyers may qualify for a Land Transfer Tax rebate. We provide a full closing cost estimate at the outset of every transaction.

Title insurance protects against losses arising from title defects, survey issues, encroachments, fraud, and other risks that may not be discovered during a standard title search. Most lenders require it. We strongly recommend it for all purchasers regardless of lender requirements.

Pre-construction purchasers in Ontario have specific rights under Tarion and the terms of their agreement of purchase and sale. Builders are permitted to delay closing within defined limits and must provide proper written notice. If a builder terminates the agreement, your rights to deposit recovery and additional compensation depend on the specific circumstances. We advise pre-construction purchasers on their rights and remedies at every stage.

A judicial review is a court proceeding before the Federal Court of Canada in which a judge reviews the decision of a federal administrative decision-maker to determine whether it was made lawfully, fairly, and reasonably. Common grounds include procedural unfairness, unreasonableness, or jurisdictional error. Applications must generally be filed within 30 days of the decision.

Yes. Many CRA administrative decisions — including decisions on taxpayer relief applications, benefit eligibility determinations, and collection matters — can be challenged by way of judicial review in the Federal Court. Tax assessments are appealed to the Tax Court of Canada. We advise on the correct forum and prepare Federal Court applications where judicial review is the appropriate remedy.

Balance Law appears before the Federal Court of Canada on judicial review, the Tax Court of Canada on tax appeals, and the Federal Court of Appeal where required. We also handle matters before the Canada Revenue Agency at the objection and review level that may proceed to litigation.

The timeline varies depending on the complexity of the record and the Court's scheduling. In straightforward matters, proceedings can be resolved within six to twelve months from filing. More complex matters may take longer. We provide realistic timeline assessments at the outset of each matter.