10 Strategies for Winning Your Tax Dispute

Transcription

1 10 Strategies for Ed Kroft, Q.C. TDO-Corp # v1

2 2 Do a cost-benefit analysis and risk assessment how much is at stake? (present value and future benefits/liabilities) economic risk factual risk legal risk

3 3 Do a cost-benefit analysis and risk assessment pure litigation risk continue to re-evaluate analysis as benefits and risks change consider financial impact of assessment and need to pay liability before dispute is resolved consider the public nature of litigation

4 4 Analyze the time and commitment necessary to win evaluate difficulty of assembling documentary/oral evidence evaluate present or future availability of documentary/oral evidence consider stress factors be prepared get started early and anticipate problems!

5 5 Maintain an objective/detached attitude through the process be realistic about the prospects for success continuously re-evaluate the cost-benefit analysis know when to hold/fold can you do any better? prepare emotionally for possible settlement

6 6 Choose the proper forum for dispute which level of bureaucracy? which court? these determinations are based on: - statutory rules - risk analysis (including factual risk analysis) - remedy required - need for early settlement

7 7 Ascertain the position against you ask for the Crown position in writing consider access to information process get audit/appeals reports and notes (appeals renewal initiative) be proactive and don t be shy unless you wish to avoid contact (e.g. credibility gap, personality conflict)

8 8 Ascertain the position against you anticipate/evaluate the Crown's risk assessment determine if your situation is part of a project or involves a principle issue determine if it is strictly a factual issue (including a valuation issue) importance of multiple issue case

9 9 Get to know who your friends and adversaries are meet with your adversaries rather than use impersonal techniques (letters, voic , ) determine the party who makes the decisions get to know your adversaries (e.g. pet peeves) and the will to fight/compromise

10 10 Get to know who your friends and adversaries are treat your adversaries with dignity assess how much legal input is accepted or welcomed expect that your adversaries are not your friends and will do their jobs properly

11 11 Determine other avenues for dispute resolution settlement examine possibility of settlement to get to same economic result use creativity to fashion settlement determine proper and most likely forum for settlement: audit, appeals or court? craft a legal basis for settlement use the fairness package

12 12 Cover off risks of collateral attack check expiry of limitations periods avoid or revoke waivers assess prospect of collateral collection remedies (director liability, transferee liability)

13 13 Observe all procedural requirements meeting filing deadlines for objections, appeals meet deadlines for responding to letters/queries don't ask for favours unless you need them there is a cost

14 14 Try to control the process and agenda at all times control information flows, timing of discussions/meetings risk assessment and prospect of settlement may change once process becomes too formalized (i.e. court proceedings)