Do You Need a Lawyer to Go to Tax Court of Canada?

If you disagree with a CRA assessment after the objection stage, going to the Tax Court of Canada can feel intimidating. Many people wonder whether they must hire a lawyer, or whether they can simply speak for themselves.

The short answer is that the rules allow individuals to appear on their own. Whether you should is a separate question that depends on the size and complexity of the dispute and the procedure you are in.

This article covers Canadian federal tax law, which applies in every province.

Can you appear on your own?

Yes, in the situations described here. Under the informal procedure, all parties may appear in person or be represented by counsel or an agent. Under the general procedure, Tax Court of Canada Act s. 17.1 provides that an individual may appear in person or be represented by counsel.

Whether other kinds of taxpayers, such as corporations, must be represented can differ, so confirm that point before you file if it applies to you.

Who can represent you

The word agent is significant. In the informal procedure, you are not limited to a lawyer; an agent may speak for you. In the general procedure, the provision refers to counsel.

Why the procedure you are in affects the answer

The informal procedure is designed to be more accessible. The Court is not bound by legal or technical rules of evidence, and your notice of appeal sets out reasons and facts in general terms. It is available where the amounts in issue are $25,000 or less, or a loss is $50,000 or less, and you elect it, or where only interest is in dispute.

The general procedure asks more of you. The Crown replies within 60 days, and facts you allege that are not denied in the reply are deemed admitted. Each party files a list of documents within thirty days after the pleadings close. Examinations for discovery require you to answer proper questions, correct earlier answers that were wrong or incomplete, and accept that the other side may read your discovery evidence into its case at the hearing. These steps are where self-represented people most often find the process demanding.

When professional help matters most

• Deadlines: the Court must receive your notice of appeal within 90 days of the date on the CRA's notice, and a late application for an extension has strict tests and a one-year outer limit.
• Choosing a procedure: the dollar limits, the option to limit an appeal, and the effects on precedent and appeal rights all turn on your facts.
• Settlement: a written offer served at the right time can increase costs recovery in the general procedure, and the Minister may reassess with your written consent to dispose of an appeal.
• Costs: the Court weighs the result, complexity and conduct when ordering costs in the general procedure.
• Further appeals: an appeal to the Federal Court of Appeal generally must be filed within 30 days, not counting days in July and August, and informal judgments can be appealed only on limited grounds.
• Privacy: a hearing may be held in camera on application where the circumstances justify it, and filers must redact SINs, business numbers and full birth dates.

If your dispute is under the informal limits and the facts are simple, representing yourself may be realistic. Larger or more technical disputes are where advice tends to matter most.

What to do next

• Confirm your appeal deadline from the date on the CRA's decision.
• Work out the amounts in issue and which procedure applies to you.
• Gather your notice of objection, the CRA's decision, and the records that support your position.
• Decide whether to act alone, use an agent in the informal procedure, or retain counsel.
• Ask a lawyer or accountant about any step you are unsure of before you file, especially if a deadline is close.

Frequently asked questions