When you have been slapped with a tax debt that you believe is unfair or that you believe is incorrect, the prospect of objecting and heading to tax court to dispute the issue may seem daunting. Once CRA assesses you and proceeds to hold that debt over your head, it might seem easiest to just deal with the debt rather than attempting to fight for your rights. But wait, although tax court may require a bit of leg work, this recent article from The Toronto Star demonstrates just how beneficial it can be to object!
In 2009, Thunder Bay resident Trudy Tallon claimed medical expense tax credits after spending the winter in various warm climates to help relieve her chronic pain. These locations included Thailand, Cambodia, Costa Rica and Venezuela, among others. The CRA initially denied these claims, but rather than accepting the refusal, Tallon took the matter to court and has since received a favourable ruling. Talon was allowed to claim a medical expense tax credit of over $17,000.
According to The Toronto Star, “This decision shows that the courts are frequently more sympathetic to taxpayers than the CRA and want to give them the benefit of the doubt. Therefore if a claim for a tax credit or tax deduction is turned down, it may be worth it to appeal the decision.”
If you feel as though you are being unfairly penalized and CRA refuses to accept your objection to a reassessment, don’t just assume that that is as far as you can go. As a taxpayer you have rights, and this generous ruling shows that sometimes tax court is far more sympathetic than CRA. Just keep in mind that the process is a formal one, and working with an experienced firm is the best way to ensure positive results.
To find out about objecting to a CRA assessment, and for help with this formal process, please contact Tax Solutions Canada today by calling 1-888-868-1400.