All taxpayers must understand that filing taxes and reporting all income accurately is not an accounting exercise, nor the fulfilment of a social obligation. It’s the law. Failure to file every year, or concealing income on your return, is committing tax evasion and tax evaders are prosecuted in criminal court by way of summary conviction or upon indictment.
When convicted, large fines (up to 200% of the tax that should have been paid plus daily interest) are payable. If several years have passed, the daily interest can be almost as high as the tax. There will also be civil fines of up to 50% of the tax that is owed, plus, once again, daily interest. The total tax liability can be enough to ruin you financially.
Contrary to popular opinion, declaring bankruptcy won’t necessarily wipe out your full amount of tax debt. It also won’t protect you from criminal charges. If you are convicted of tax evasion, failure to pay the criminal penalty will land you in jail.
You should be concerned about the possibility of a criminal investigation if:
You lied on your return to avoid paying taxes and now the CRA has notified you that they are reviewing it. Auditors are trained to refer cases to Investigations when they discover false or fraudulent information.
You haven’t been filing income tax returns. If you haven’t been filing, you need to be very worried about your years of evading taxes leading to prosecution. This holds true even if you think that you have paid most or all of your personal taxes. Wilful failure to file your tax return for more than one year if tax is due, is a criminal offence.
A third-party demand is served on your accountant, bank, employer or others seeking information related to your taxes.
You have problems with provincial tax authorities.
The Canada Revenue Agency and provincial tax authorities have information-sharing agreements. Therefore, if you have a run-in with provincial tax authorities, the federal Agency may also be aware of the situation and could decide to look into the matter further.
Any of these situations indicate that the CRA is already on your case and appropriate legal counsel is your best protection.
All taxpayers must understand that filing taxes and reporting all income accurately is not an accounting exercise, nor the fulfilment of a social obligation. It’s the law. Failure to file every year, or concealing income on your return, is committing tax evasion and tax evaders are prosecuted in criminal court by way of summary conviction or upon indictment.
When convicted, large fines (up to 200% of the tax that should have been paid plus daily interest) are payable. If several years have passed, the daily interest can be almost as high as the tax. There will also be civil fines of up to 50% of the tax that is owed, plus, once again, daily interest. The total tax liability can be enough to ruin you financially.
Contrary to popular opinion, declaring bankruptcy won’t necessarily wipe out your full amount of tax debt. It also won’t protect you from criminal charges. If you are convicted of tax evasion, failure to pay the criminal penalty will land you in jail.
You should be concerned about the possibility of a criminal investigation if:
You lied on your return to avoid paying taxes and now the CRA has notified you that they are reviewing it. Auditors are trained to refer cases to Investigations when they discover false or fraudulent information.
You haven’t been filing income tax returns. If you haven’t been filing, you need to be very worried about your years of evading taxes leading to prosecution. This holds true even if you think that you have paid most or all of your personal taxes. Wilful failure to file your tax return for more than one year if tax is due, is a criminal offence.
A third-party demand is served on your accountant, bank, employer or others seeking information related to your taxes.
You have problems with provincial tax authorities.
The Canada Revenue Agency and provincial tax authorities have information-sharing agreements. Therefore, if you have a run-in with provincial tax authorities, the federal Agency may also be aware of the situation and could decide to look into the matter further.
Any of these situations indicate that the CRA is already on your case and appropriate legal counsel is your best protection.
DioGuardi offers solutions for tax problems such as:
Unreported income
Unfiled tax returns
Payment arrangements
Unpayable tax debt
Tax dispute litigation
Criminal tax defense
Wills, Estates & Trusts
DioGuardi Law offers these will, estate and trust services for individuals and business-owners:
Wills
Preparation of trust agreements
Powers of attorney
Estate administration
Probate
Representation in estate driven litigation
Real Estate
DioGuardi Law can assist you with all your real estate needs including:
Newly constructed/Resale
Purchases and Sales
Title transfers
Leases
Private mortgages
Refinancing
Condominiums
Vacant land
Tax Debt Relief
When your tax balance is too large to be affordable, DioGuardi Law can protect your home, your cash flow and your financial assets from the Taxman. It is essential that we begin planning a strategy before the CRA registers a lien against your properties or seizes financial accounts, and before you engage with an insolvency trustee.
Business & Tax Planning
DioGuardi Law has the experience to provide:
Resident and non-resident corporate restructuring
Optimum use of holding corporations
Continuity and succession planning
Tax-free transfers
Losses and ABIL planning
Making interest tax deductible
Small business planning
Corporate & Commercial Law
DioGuardi Law have represented business clients for the last 50 plus years and have supported their legal requirements on an on-going basis by offering the following services:
Incorporations and corporate governance
Corporate reorganizations and transactions for the directors and shareholders
Negotiation and drafting of agreements, professional corporations, minute book maintenance
Brigitte DioGuardi
B.A., LL.B
Brigitte obtained her Law Degree from the University of Sheffield in the United Kingdom. Upon her return, she qualified for the Bar and was called to the Law Society of Ontario (formerly the Law Society of Upper Canada) in 2002. She was also a member of the Bar of British Columbia and headed up the Vancouver office of DioGuardi Tax Law. Fluently bilingual in English and French, Brigitte has broad experience in the areas of:
Joyce Bruno has worked as executive legal assistant to Paul Dioguardi for 35 years and continues to offer her expertise and experience to the Dioguardi Law firm. Joyce’s role has evolved over the years and has acquired and developed many skills. She is an invaluable asset in case management and ensures the smooth running of our office.
Paul DioGuardi
B.A., LL.B, KING’S COUNSEL, SENIOR COUNSEL
Paul obtained his Law Degree from Queen’s University in 1964. He is a member of the Bars of Ontario, British Columbia and the Turks and Caicos Islands, a British tax free territory in the West Indies. He has over 50 years of experience and was trained at the Ottawa head offices of Revenue Canada and the Tax Litigation Section at the Department of Justice. Paul has had and continues with an extensive career in various areas of law such as:
