North York Tax Lawyer for CRA Audits, Real Estate Tax and Tax Court Appeals

The Yonge Street corridor through North York has seen intense condominium development, and with it a steady stream of CRA real estate audits. The CRA cross-references land registry records, builder data and assignment agreements to identify unreported sales and profits that were reported as tax-free capital gains or principal residence sales when the CRA believes they were business income.

We act for owners and investors in disputes involving pre-construction condo assignments, the residential property flipping rule for homes held less than 365 days, principal residence exemption denials, HST on assignments and new homes, and GST/HST new housing rebate clawbacks where the CRA says the buyer did not move in. Non-resident owners selling Toronto property also need section 116 clearance certificates, and we help with those as well.

North York is home to many newcomers and families with financial ties abroad. When a home purchase or bank balance seems larger than reported income, the CRA may use a net worth audit to estimate unreported income. These audits often fail to account for gifts and loans from family overseas, proceeds from selling property in another country, and savings brought to Canada on arrival. We help clients document these sources and challenge assessments and the gross negligence penalties that frequently accompany them.

New residents also have reporting duties, including Form T1135 for foreign property costing more than $100,000. Where past filings were missed, the CRA's Voluntary Disclosures Program can provide full penalty relief and 75% interest relief for applications made before the CRA contacts you about the issue.

From professional practices and retail businesses along Yonge Street to consultants and contractors working from home, we represent North York business owners in CRA audits of income, expenses and GST/HST. Common issues include cash income, vehicle and home office expenses, shareholder loans and benefits, missing GST/HST registration after crossing the $30,000 small supplier threshold, and denied input tax credits.

When a business falls behind on payroll remittances or HST, its directors can be held personally liable. We advise directors early, when steps can still be taken to reduce exposure, and defend them against director's liability assessments.

When an objection does not resolve the dispute, the next step is an appeal to the Tax Court of Canada, which sits regularly in Toronto. Appeals must generally be filed within 90 days after the CRA confirms the reassessment. Smaller appeals can proceed under the informal procedure; larger ones follow the general procedure with discovery and stricter rules. We prepare and present appeals for North York and Toronto clients, and negotiate settlements with the Department of Justice where a principled resolution is available.

Iqbal Law brings more than 20 years of experience in tax disputes. Our advice is protected by solicitor-client privilege, and we work alongside your accountant to resolve matters efficiently.

Many people who contact us have received a letter they do not fully understand, sometimes in a second language. The first step is to identify the type of letter and the deadline. A request for information, a real estate questionnaire, an audit proposal, a notice of reassessment and a collections notice all require different responses, and some deadlines are as short as 30 days.

Do not guess at answers or send documents without understanding why they are requested, and do not ignore the letter. Gather your returns, bank statements, purchase and sale agreements and any records relating to the issue. If funds came from family abroad, collect transfer records and correspondence now, while they are easiest to obtain.

Then contact us. We will explain the letter in plain language, confirm the deadline, and advise whether we should respond on your behalf. Early advice is often the most cost-effective way to resolve a CRA issue before it becomes a reassessment.