Most CRA collection agents will consider a reasonable request for a temporary stay of collection action while we work with a client to reorganize his or her finances to address payment of a large tax debt.
But sometimes you can run into a grandstander – an overly aggressive tax collector who is new on the file or is simply determined, for whatever reason, to bring home a fresh kill.
Such a person will renege on a payment arrangement agreement, move without warning to seize a taxpayer’s bank accounts or issue Third Party Payment demands to the client list of a business owner, or a landlord’s tenants.
Some CRA agents threaten to take overly aggressive actions to collect unless the taxpayer terminates his/her relationship with their lawyer. They do this because it’s easier to succeed without having to first fight the taxpayer’s protector.
In one of our own cases, our client advised us that he was told by the CRA collector to terminate our services after which a good deal could be made. We asked him to speak to the agent again and to record the conversation. He did so. We then wrote to Tax Services Office manager and provided him with a recorded copy of the threat. We advised that legal action could ensue for interfering with a lawyer/client relationship if he was not severely admonished.
A few days late we got a letter from his manager which read, in part, as follows:
“I acknowledge receipt of your letter. The facts and circumstances of your letter and attachments (the tape recording) have been added to my dossier pertaining to my internal investigation of the allegations that have been raised against Mr. X by your firm.
Effective …….he was directed to cease and desist from contacting your law firm or any clients your law firm represents. This will allow me to complete my investigation without further aggrieving the matter. Mr. Y has taken carriage of the files where your firm is a named representative.
Should you become aware of any instances where Mr. X is not abiding by the above edict please contact me directly at……..
Thank you in advance for your cooperation in this matter and I trust that my actions as identified above are in line with your request.
Sincerely,
Mr. Z – Manager,
Hamilton/Tax Services Office
Canada Revenue Agency”
To this day, this letter is framed and mounted on the wall of our law firm.
The word must have gotten around to the other collectors because the problem never arose again.
The foregoing provides only an overview and does not constitute legal advice. You are cautioned against making any decisions based on this material alone. Rather, specific legal advice should be obtained in the context of your own particular circumstances.
How We Dealt With An Overagressive Tax Collector
Most CRA collection agents will consider a reasonable request for a temporary stay of collection action while we work with a client to reorganize his or her finances to address payment of a large tax debt.
But sometimes you can run into a grandstander – an overly aggressive tax collector who is new on the file or is simply determined, for whatever reason, to bring home a fresh kill.
Such a person will renege on a payment arrangement agreement, move without warning to seize a taxpayer’s bank accounts or issue Third Party Payment demands to the client list of a business owner, or a landlord’s tenants.
Some CRA agents threaten to take overly aggressive actions to collect unless the taxpayer terminates his/her relationship with their lawyer. They do this because it’s easier to succeed without having to first fight the taxpayer’s protector.
In one of our own cases, our client advised us that he was told by the CRA collector to terminate our services after which a good deal could be made. We asked him to speak to the agent again and to record the conversation. He did so. We then wrote to Tax Services Office manager and provided him with a recorded copy of the threat. We advised that legal action could ensue for interfering with a lawyer/client relationship if he was not severely admonished.
A few days late we got a letter from his manager which read, in part, as follows:
“I acknowledge receipt of your letter. The facts and circumstances of your letter and attachments (the tape recording) have been added to my dossier pertaining to my internal investigation of the allegations that have been raised against Mr. X by your firm.
Effective …….he was directed to cease and desist from contacting your law firm or any clients your law firm represents. This will allow me to complete my investigation without further aggrieving the matter. Mr. Y has taken carriage of the files where your firm is a named representative.
Should you become aware of any instances where Mr. X is not abiding by the above edict please contact me directly at……..
Thank you in advance for your cooperation in this matter and I trust that my actions as identified above are in line with your request.
Sincerely,
Mr. Z – Manager,
Hamilton/Tax Services Office
Canada Revenue Agency”
To this day, this letter is framed and mounted on the wall of our law firm.
The word must have gotten around to the other collectors because the problem never arose again.
The foregoing provides only an overview and does not constitute legal advice. You are cautioned against making any decisions based on this material alone. Rather, specific legal advice should be obtained in the context of your own particular circumstances.
Tax Law
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
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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:
