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ARTICLE · 18 APRIL 2023

One Way CPAs Leak Confidential Information To The CRA

Counter Tax Litigators LLP
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Accountants that unthinkingly send the Agency tax appeal invoices improperly reveal solicitor-client communications and more.

CanadaTax
Peter Aprile
Peter Aprile
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Generally speaking, taxpayers can deduct fees and costs paid to prevent a potential assessment or dispute a reassessment under paragraph 60(o)(i) of the Income Tax Act R.S.C. 1985, c. 1 (the "ITA"). We encourage our clients to deduct these fees and costs.

The Canada Revenue Agency (the "Agency") may request supporting documents to confirm that the fees and costs are deductible. In many cases, accountants unthinkingly send the Agency detailed invoices that reveal sensitive information and solicitor-client communications.

It appears that many accountants fail to appreciate that tax appeal legal invoices and lawyers' accounting records ("Tax Appeal Invoices") constitute solicitor-client communications. Also, it appears that many accountants fail to appreciate that - if law firm retains an accountant to act as its agent to provide a taxpayer with legal advice - the accountant's invoices and records are protected under solicitor-client privilege, too. The Agency has

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