Several years ago, a field audit was begun by the CRA into the affairs of a corporation that operated a very successful restaurant in Ottawa. An audit letter was forwarded to the principal shareholder, who sent it to his accountants for advice.
The CRA auditor met with Mr. X, the shareholder, and an associate of the accounting firm. The auditor also toured the business premises and asked detailed questions about the operations. Then the CRA auditor transferred any corporate records not already in the possession of the accounting firm to the accounting firm’s office, where he conducted an examination of several years of financial information.
Mr. X had yet to contact legal counsel. This was a tax matter, he believed, and it would be well-handled by his accounting firm.
He was proven wrong when, at the conclusion of the office review, the CRA auditor removed the boxes of financial records from the offices of the taxpayer’s accountants without consent, and without completing the mandatory “Borrowed Records” form.
Still without the protection of legal counsel, Mr. X and his accountants participated in further discussions with the CRA auditor that later proved critical to the auditor’s recommendation for an investigation in order to build a case for criminal charges.
Meanwhile, discussions with the taxpayer’s accountants continued. On the CRA auditor’s recommendation, the Agency’s Investigations officers retroactively obtained a search and seizure order, which now gave it the legal permission to seize the boxes of documents that had previously been removed from the accountant’s premises, and which were in the possession of the tax officials. Under the authority of this order, the home of the shareholder, his place of business, and the accounting firm’s offices were also searched.
Several months later, criminal charges were brought against the corporation and the principal shareholder, as well as against some associates of the accounting firm for allegedly conspiring with, counseling, and aiding and abetting the corporation and its principals. Only at this stage did the shareholder retain legal counsel (not our firm).
Ultimately, all criminal charges were dropped, in return for a guilty plea plus a heavy civil fine. We can only wonder if Mr. X still believes he was right to leave such a serious and escalating matter in the hands of the accountants who were themselves eventually charged as co-conspirators.
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.
Several years ago, a field audit was begun by the CRA into the affairs of a corporation that operated a very successful restaurant in Ottawa. An audit letter was forwarded to the principal shareholder, who sent it to his accountants for advice.
The CRA auditor met with Mr. X, the shareholder, and an associate of the accounting firm. The auditor also toured the business premises and asked detailed questions about the operations. Then the CRA auditor transferred any corporate records not already in the possession of the accounting firm to the accounting firm’s office, where he conducted an examination of several years of financial information.
Mr. X had yet to contact legal counsel. This was a tax matter, he believed, and it would be well-handled by his accounting firm.
He was proven wrong when, at the conclusion of the office review, the CRA auditor removed the boxes of financial records from the offices of the taxpayer’s accountants without consent, and without completing the mandatory “Borrowed Records” form.
Still without the protection of legal counsel, Mr. X and his accountants participated in further discussions with the CRA auditor that later proved critical to the auditor’s recommendation for an investigation in order to build a case for criminal charges.
Meanwhile, discussions with the taxpayer’s accountants continued. On the CRA auditor’s recommendation, the Agency’s Investigations officers retroactively obtained a search and seizure order, which now gave it the legal permission to seize the boxes of documents that had previously been removed from the accountant’s premises, and which were in the possession of the tax officials. Under the authority of this order, the home of the shareholder, his place of business, and the accounting firm’s offices were also searched.
Several months later, criminal charges were brought against the corporation and the principal shareholder, as well as against some associates of the accounting firm for allegedly conspiring with, counseling, and aiding and abetting the corporation and its principals. Only at this stage did the shareholder retain legal counsel (not our firm).
Ultimately, all criminal charges were dropped, in return for a guilty plea plus a heavy civil fine. We can only wonder if Mr. X still believes he was right to leave such a serious and escalating matter in the hands of the accountants who were themselves eventually charged as co-conspirators.
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
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:
