When it comes to tax matters, you can either approach tax lawyers or accountants to solve your problem. If tax lawyers are experts in legal matters, then accountants are pros in handling tax and accounting related issues. And some issues require the expertise of both these professionals. But at times, it can get difficult to determine whether you need legal help or accounting assistance.
Role of An Accountant
The common tasks of accountants in firms are to file tax returns and prepare tax forms. Lawyers who offer to prepare tax returns for their clients as part of a package of legal services such as a voluntary disclosure use accountants in their team to do so too. You would also need an accountant while writing a business plan. Their expertise in financial software will help you in determining financial projections for your business. And, lastly you would need an accountant for your day-to-day accounting activities.
Role of a Tax Lawyer
One of the main reasons why you would need a lawyer will be to represent your firm in tax litigation. Although accountants can represent firms in court, handling a case in court is purely a legal activity. Lawyers are trained to provide corporate firms with all the legal help they need. So, it’s best to approach a lawyer if you have to go to court. Businesses would also need legal help while dealing with the Canada Revenue Agency (CRA). Cases involving failure to file tax returns or a CRA tax evasion prosecution is best handled by a tax lawyer. If an accountant tries to represent the firm in case of a CRA evasion, then there is a high chance that the CRA would suspect that the company is trying to reduce its tax quota.
Lastly, firms would need legal help while doing tax planning. No doubt, the accountant also plays a crucial role in tax planning, but a tax lawyer will be well-versed with all the tax laws and their recent amendments. So, it’s a great idea to take help from a tax lawyer during tax planning.
Have you been facing tax issues in your firm? If yes, then consult with our legal counsel at the earliest.