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1. How much does it cost?
Your membership fee is based upon the sources of income (i.e. employment, pension, rental, business, fishing, farming, etc.) and the types of deductions and credits you claim in your income tax return. For taxpayers who report only employment or pension income, membership starts at just under $20. For those who report investment income, dividends, or who are self-employed or have rental income, membership starts at just under $50. If you would like to find out how much your membership would be, try our secure online application system. There is no obligation to purchase and you can exit the system at any time.
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2. If I become a Member, does this mean I cheat on my taxes?
No. By becoming a member of the Plan, you are retaining Sixth Sphere Services Professional Corporation to act as your legal counsel in the event your 2007 income tax return is audited or reassessed by the CRA. Merely because you have legal counsel doesn’t mean you’re not legally responsible for any taxes or penalties if you cheat on your taxes. In fact, tax evasion charges are specifically excluded from the scope of the Hours of Legal Services provided under Plan. Remember, Al Capone had legal counsel when he was charged with tax evasion – and he was still convicted and jailed.
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3. How do I become a member?
You have two options to become a member: (1) You can sign up through an accountant or other tax preparer who is registered with us as a CTAPP Participating Tax Professional. Contact your accountant today to ensure that they have signed up with us. (2) You can apply directly using our secure online application system. Our online application system will be open from April 12, 2008 to July 15, 2008.
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4. Will you do my taxes for me?
No. The Plan is a specialized legal services plan. Your accountant or financial planner is the best person to prepare and file your 2007 income tax return for you. What the Plan does do is provide legal advice and assistance to you and your accountant in the event your income tax return is audited or reassessed by the CRA to ensure that your legal rights as a taxpayer are protected.
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5. Why would I need legal counsel? Can’t my accountant handle an audit for me?
Yes, your accountant can – and should – assist you if you are audited. They can even file a notice of objection on your behalf. However, without the involvement of legal counsel, anything you say to your accountant is not protected by solicitor-client privilege and could be used against you. Furthermore, if the audit or objection goes poorly and you need to appeal to the Tax Court of Canada, under the Plan, you will have legal counsel to represent you. When the CRA audits you, they are represented by an auditor who is an accountant and who is supported by, and has access to, the tax lawyers at the federal Department of Justice. The Plan makes sure you and your accountant are equally supported by legal counsel, but at minimal cost to you.
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6. What would it cost to hire a lawyer at the time I’m audited if I wasn’t a Member?
Like all professional services, legal costs depends upon the complexity of the issues and the time it takes to resolve the matter. However, experienced tax lawyers generally charge more than $300/hour and most will not start work until they’ve received a $5,000 retainer. According to a 2005 survey by Canadian Lawyer magazine, the average legal cost of a two-day civil trial was $20,830.