What is a Fiscal Arbitrator?

A fiscal arbitrator may be available to assist you with making amendments to your previous years' returns or to file your current returns. A fiscal arbitrator can step into a complicated situation to help you with managing your taxes, but it is always important to only retain the services of someone who is knowledgeable in the tax field. Someone who promotes themselves as a fiscal arbitrator but does not has the necessary training or experience could expose you to additional losses.

When Do You Need a Fiscal Arbitrator?

You need a fiscal arbitrator if you are interested in filing paperwork with the CRA or in need of advanced tax related support due to a CRA audit, unfiled taxes, back taxes, or more.

Our Canadian tax amnesty law firm has a great deal of experience in this field and have worked with many different clients from filing paperwork, correcting materials or avoiding penalties and criminal prosecution related to CRA tax audits. It is imperative to have someone with experience, professionalism and strong ethics assisting you in answering your questions as well as representing you in front of any necessary bodies when you are facing a tax situation.

Fiscal Arbitrators | Canadian Tax Amnesty

If you have questions about a previous relationship with the Fiscal Arbitrators in Canada and what they mean, including whether or not any advice or materials you have received from them are accurate or applied to your individual situation, you want the help of experienced and knowledgeable tax professionals in Canada. Our office can assist you with a broad variety of tax related issues and can provide you with prompt and informed answers to your key questions.

Relying on professionals or those people who allegedly claimed to be professionals is one way to file your taxes. However, as recent issues have shown, if you work with the wrong people this can be a situation that follows you for months or even years. Many people who chose to partner with Fiscal Arbitrators found themselves on the wrong end of a massive tax bill and are now sorting out the consequences. If that’s you, we might be able to help.

Fiscal Arbitrators Case Background

The Fiscal Arbitrators Organization convinced many Canadian taxpayers to allow self-claimed tax experts to handle the preparation amendment and filing of their tax returns in order to exploit non-existent expense deductions. The purpose of this was to reduce the taxpayers' taxable income to produce tax refunds throughout this scheme.

Fiscal Arbitrators would charge a set fee for preparation of the return plus a portion of any refund produced. This is not the only company that has been accused of this fraudulent scheme. DCS Lifestyle Services is another company that was also involved and would refer its clients to Fiscal Arbitrators for a cut of the proceeds. An estimated 1,800 Canadian taxpayers fell victim to Fiscal Arbitrators' fraud.

Tax Fraud Cases Caused by Fiscal Arbitrators

Regardless of the reason for which the tax fraud was perpetrated, it can be the responsibility of the individual or business to correct these issues and this individual or business will also be the one responsible for communicating with the CRA. Because of the advice provided by Fiscal Arbitrators, several taxpayers were slapped with gross negligence penalties from the CRA.

This happened after the CRA completed a tax audit of the taxpayers' taxation years denying the fictional deductions and levying gross negligence penalties. In other cases, Fiscal Arbitrators advised taxpayers to register as a business on account of a legal loophole and taxpayers were advised to file their tax returns as an independent business entity. These taxpayers were led to believe that they could deduct all of their living expenses as business expenses, leading to fiscal arbitrators receiving a portion of the received tax refund. None of these taxpayers thought to consult with an experienced Canadian tax lawyer before filing these returns but are now dealing with the aftermath of sorting this out with the CRA.

Appeal of Gross Negligence Penalties

It is important to take action as soon as possible if you believe that you fell victim to this fraudulent scheme. Of the four tax court judgements released on fiscal arbitrators' gross negligence penalty cases, three of those taxpayers were successful. All four of these cases involved appeals of the income tax charge of a gross negligence penalty levied by the CRA.

Factors in a Tax Court's Decision

Tax courts will take numerous factors into their devaluation of whether or not you will need to pay the penalties. In these cases they had to decide if the taxpayer stepped over the line of being careless or naive into purposeful blindness. Gross negligence penalties are to be upheld depending on those levels of care or lack thereof exercised by the taxpayers entrusting the advice of Fiscal Arbitrators.

Avoid schemes in the future by consulting with a Canadian tax lawyer. Call Rotfleisch & Samulovitch PC today.

Contact a Canadian Tax Lawyer Through Rotfleisch & Samulovitch PC

Call Rotfleisch & Samulovitch PC today at 416-367-4222. Our office can also be reached through email or fax and you can use the online contact from at our website or visit our Toronto office to get your questions about Fiscal Arbitrators answered.

PRO TIP :

“Falling victim to schemes and penalties from the CRA can be avoided through proper consultation with a Canadian tax lawyer.”

FAQs on Fiscal Arbitrators

Can you appeal a gross negligence penalty levied by the CRA?

There are certain circumstances in which you are indeed eligible to appeal a gross negligence penalty levied by the CRA. Because of these complex tax concerns it is important that you proceed in these kinds of cases with the support of a Canadian tax lawyer. This is true whether or not you were impacted by the Fiscal Arbitrator scheme.

What should the victims of Fiscal Arbitrators have done to avoid trouble?

It is important to always thoroughly vet any tax professional that you are thinking about working on your individual or business tax return. Seeking out the advice of Canadian tax professional attorneys could have helped to avoid these significant challenges and all of the administrative work or appeals necessary for those individuals who fell victim.

How can I avoid similar schemes from untrustworthy tax professionals?

Always do a thorough research about a tax professional that you are intending to communicate with regarding your tax preparation or tax reduction strategies. Experienced and knowledgeable lawyers can always review any existing plans or structures to help you make the right decision going forward. Schedule a consultation with a trusted tax preparation professional today to learn more.

Disclaimer:

"These articles provide information of a general nature only. It is only current at the posting date. It is not updated and it may no longer be current. It does not provide legal advice nor can it or should it be relied upon. All tax situations are specific to their facts and will differ from the situations in the articles. If you have specific legal questions you should consult a lawyer."

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I did not know that eBay income was taxable, so I did not report it. Then I read about the CRA investigation of eBay and realized that I had a problem. I did some on-line research and found out about the voluntary disclosure program, and I retained the firm of Rotfleisch & Samulovitch as my tax lawyers to represent me. They submitted the tax amnesty application on my behalf, but CRA rejected it for 2 reasons. First, they had sent me a letter about an audit, but I never received it because it went to an old address. Second my bookkeeper made mistakes in the tax returns we submitted to complete the VD. David Rotfleisch, CPA, JD and his team submitted a second level voluntary disclosure review application arguing in detail why CRA was wrong and my voluntary disclosure should be accepted. CRA accepted his arguments and processed the VD with no penalties and reduced interest. If I had originally gone to an accountant I’m sure there would have been a different result. I am delighted with his services and results, and do not hesitate to recommend him.

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CRA assessed me for over $140,000 in tax liabilities due to payments from my husband when he had his own taxes owing. My accountant filed a Notice of Objection on my behalf, but CRA wrote back denying my appeal and giving me 30 days to make further submissions. I went to a trustee in bankruptcy to deal with my tax debt and he referred me to a Toronto tax lawyer, David Rotfleisch. David reviewed my file and said that the accountant did not make the proper legal arguments. He and his team submitted a detailed 13 page submission to the appeals officer. CRA accepted the arguments made on my behalf and eliminated all of my taxes owing. I could not be happier with the result and recommend David to anyone with tax problems.

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My professional accounting practice consists of individuals and small to large business clients. I'm a Chartered Public Accountant, Certified General Accountant, Certified Public Accountant in the U.S.A. and a member in the Association of Chartered Certified Accountants in the U.K. My clients are often in need of a Canadian tax or business lawyer either to carry out tax planning to reduce taxes owing or to dispute CRA assessments. I have been working with David Rotfleisch for more than 5 years and he is my only choice for legal tax assistance. He is effective, responsive and very committed to solving my client's tax issues. I would not consider going to another tax lawyer for assistance.

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CPA (C.O.), FACCA (U.K.) Toronto, Ont - Accountant

I am a bankruptcy trustee and have known David for a number of years and worked professionally on a number of matters with him and have even hired him for tax advice on personal matters. I am happy to report that I rarely meet someone with such a powerful combination of both up to date technical knowledge and practical street sense. David gives answers , to the point and and answers which have immediate practical use - what more could you ask for?

Howard Landau, CIRP | Partner Dodick Landau Inc. Toronto - Trustee in Bankruptcy

I consider David Rotfleisch, a Toronto tax lawyer, to be my mentor, and turn to him for advice in complex situations. I'm a tax and business lawyer with my own practice in Hamilton. Whenever I have a new or complex situation I ask David for his assistance. He is always willing to listen and to help and provides me with invaluable practical and technical advice.

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Fiscal Arbitrators