It’s an unfair fight when you have an ordinary person up against a highly trained government lawyer who is an expert in tax matters and experienced in litigating in the tax court.
Rising legal costs and auditor intimidation are putting Canadian small business owners at a marked disadvantage when it comes to fighting a Canada Revenue Agency tax reassessment in court.
“It’s an unfair fight when you have an ordinary person up against a highly trained government lawyer who is an expert in tax matters and experienced in litigating in the tax court,” said David Spiro, counsel with Fraser Milner Casgrian LLP.
Business owners disputing tax bills of less than $25,000 generally opt for the “informal procedure,” a sort of small-claims court for tax, when disputing tax reassessments.
The issues presented in small cases are often just as complex as those involving much larger companies. However, small business owners are far more likely to represent themselves.
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