OVERVIEW

Explore Our Services

We help individuals and small business owners navigate complex CRA matters with clarity and confidence.

From resolving collections and disputes to preparing strategic disclosures and relief applications, our services are backed by over 22 years of CRA experience. Whether you’re under audit, behind on filings, or simply need expert advice, we tailor every solution to your situation. Explore our core services below to find the right starting point for your needs.

How it works

CRA Collections

Stop garnishments, freeze orders, and CRA pressure with fast, strategic intervention.

Voluntary Disclosures

Correct past tax mistakes and avoid penalties through the CRA’s VDP.

Tax/Debt Relief

Reduce penalties and interest through the Taxpayer Relief Program if you’re facing hardship.

Audit Support

Expert guidance through every step of your CRA audit, from initial contact to final resolution.

Objections

Disagree with a CRA assessment? We’ll file and manage your Notice of Objection.

General Advisory

Get year-round tax advice and proactive support to avoid issues before they arise.

Why Choose Bell Tax Advisory?

James, with over 33 years of experience in this field, including his 22+ years working at the CRA, is able to offer a unique perspective to resolve disputes efficiently and effectively. James and Bell Tax Advisory are committed to providing tailored solutions, strategic insights, and the dedicated support you and your clients need to achieve the best results.

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"One of the best experiences I have ever had dealing with a lawyer! James in an expert in the field of tax law and had all the facts of what can and can’t happen when dealing with the CRA. He gave solid advice on what I should do. He spent over an hour of his own time to go over everything in detail and in turn was honest that we didn’t need more than that with him at this time! When I do need to ask more questions I will not hesitate to hire James. Highly recommended."
Kelly Wayne
"I had an issue with CRA and reached out to Farber for some direction as dealing with CRA can be daunting. James was very easy to talk to and explained things in a very matter of fact manor which i really appreciated. Even though my issue didn't meet the threshold needed to hire his firm, he took the time to explain things and made sure i understood what i needed to do. I did offer to pay for his time ( 35 mins on phone) but he declined and said he was happy to help. Highly recommend this company!"
Randy Douez
"To say that James was extremely helpful would be an understatement speaking metaphorically It was so helpful walking through the minefield with someone who knows where all the mines are. he was intentive, compassionate, and understanding to our situation and pointed us in the direction we needed to go it alleviated a great amount of anxiety for my wife and I, which is something we needed right now We both cannot praise and thank him enough."
Bob Steyaert
"Would highly recommend James Bell and his team for and issues with the CRA! James was very quick to respond and ultimately saved us over $10,000.00 on a dispute we were having with an HST issue dating back to 2022. Thanks again James!"
Leo Reinsoo
"James is an incredible resource and a wealth of knowledge. If you ever want good, honest, genuine, smart and experienced advice definitely call James. James previously worked for the CRA and understands the ins and outs and how to help people. You will not regret calling James!"
Romeila Son
"I can't say enough about James Bell. He literally gave me my life back. My husband, unknowingly, invested in a tax shelter that proved to be a scam. That was 20 yrs ago. He passed away 10 yrs ago. 1 1/2 yrs ago, cra wanted me to pay an atrocious for his outstanding tax return dating back to 2004. James has helped me to understand exactly what I was dealing with. What peace of mind!!! Thank you again James. I appreciated every second of my consult."
Nicole Rondeau
"I had a meeting with James Bell on February 20, 2024 regarding some personal CRA tax issues that I am dealing with. I found his many years of both CRA experience and his experience now helping those who are dealing with CRA tax issues to be extremely great and helpful! He explains the matters, and how the CRA deals with them. He fully explains all options available in dealing with the CRA matters resolution. I highly recommend contacting Farber Tax Solutions with all CRA tax issues as they are very well versed in everything to do with CRA. They are very willing and capable to help with all CRA tax matters."
Tom Procter
"It was such a relief to get some guidance on how to handle a CRA dispute I am currently dealing with. James Bell could not have been more helpful nor patient in explaining things to me. Further, I know I can discuss this issue with him should a new problem occur. I would definitely recommend this firm to anyone needing some help with issues concerning the CRA!"
Joannie Yurchuk
"I recently had a lengthy consultation with James, and it was extremely helpful. He worked with me to help find the best solution to my situation, he did not push their services or try to force a sale. He offered a great deal of knowledge and experience, helped me put together a reasonable plan, and generally helped me relax about the process. I honestly felt that he cared about my well being and getting through this challenging situation the best way possible, which I believe is how all businesses should operate but many sadly don't. James has earned my trust, and has my recommendation!"
Jesse S.

Frequently asked questions

The Canada Revenue Agency (CRA) administers tax laws for the Government of Canada and for most provinces and territories. It also administers various social and economic benefit and incentive programs delivered through the tax system.

Led by the Minister of National Revenue, the CRA is one of the largest federal government departments, with 51 tax services offices and tax centers across the country, 43,000 employees nationally, and a $4.3 billion budget.

Those who experience tax problems quickly learn how powerful the CRA is and what they are capable of. The CRA has an array of legal powers to collect revenue on behalf of the Canadian government. Powers include:

– Set-off: the CRA applies money owed to you by the government towards your tax debt.

– Garnishment: the CRA intercepts funds payable to you by a third party such as an employer, or other sources of income.

– Bank freeze: the CRA freezes your bank account, preventing you from accessing it and applies the balance towards your tax debt.

– Certifying tax debt in the Federal Court of Canada: the CRA legally registers your debt with the Federal Court of Canada and gets a certificate confirming the amounts you owe to the Crown. Once registered, the certificate has the same force and effect as a judgment obtained in a court and makes your debt a matter of public record.

– Seizing and selling your assets: the CRA obtains a writ and seizes your assets and property such as your home, car, boat, art, cottage, or rental property. Seized assets are then advertised and sold by a court enforcement officer.

– Holding another party jointly responsible for your debt: the CRA holds a third party such as a spouse, business partner or related corporation jointly responsible for your tax debt.

– Criminal prosecution: the CRA pursues criminal charges against you for tax evasion..

Don’t hesitate to contact us today to set up a confidential consultation.

A tax problem can quickly become a tax emergency.

Unresolved tax disputes with the CRA pose significant risks to taxpayers. The CRA has sufficient powers to collect tax debt under the various tax acts. Taxpayers facing problems such as past due tax returns, undeclared income, or outstanding tax debt could face harsh consequences including:

  1. Interest: Unpaid taxes can accrue significant interest, often increasing the tax debt many times higher than the original amount. Interest charged by the CRA is compounded daily and is set at a rate much higher than that offered by financial institutions. In most cases, interest accrual cannot be stopped until the entire debt is paid in full.
  2. Penalties: The CRA often levies financial penalties on filing errors and/or omissions, including late filing penalties, repeated failure to report penalties, and gross negligence penalties which can be as high as 50% of the understated tax. Penalties are meant to be punitive.
  3. Prosecution: In cases of significant tax evasion, the CRA can pursue criminal prosecution and routinely publishes information on successful criminal convictions. Under the Income Tax Act and the Excise Tax Act, persons convicted of tax evasion can face fines ranging from 50% to 200% of the taxes evaded and up to two years imprisonment. Upon conviction on an indictment, a fine ranging from 100% to 200% of evaded taxes and up to five years in imprisonment can be imposed.
  4. Enforcement Action: The CRA has a variety of legal powers to collect an outstanding tax debt. These powers include:
  • wage garnishments,
  • bank account seizures,
  • liens on your home, vehicle and other property,
  • RRSP, RESP seizures,
  • garnish company receivables, and
  • pursue directors of corporations for corporate tax debts.

Canada has a self-reporting tax system. This means that it is up to you to file your income tax returns on time, allowing the CRA to assess them for accuracy. For most individual taxpayers, there is a standard deadline of April 30. Self-employed taxpayers have an extended filing deadline of June 15.  Regardless of your deadline, failure to file your taxes on time can be a costly error. In addition to paying your tax debt, the CRA will assess penalties and interest on your account.

Under subsection 162(1) of the Income Tax Act, the late filing penalty starts at 5% of your unpaid tax due, and an extra 1% is added for each month that the return is late, up to 1 year. This means that the penalty can go up to 17% of your tax debt. If you were a late filer in any of the three previous years, you will be assessed as a repeated late filer. Under subsection 161(2), the penalty starts at 10%, and an extra 2% is added for each month, up to 20 months. This means that the penalty can be up to 50% of your original tax debt.

Under section 161 of the Income Tax Act, the CRA can charge interest on your unpaid tax debt owing. In addition, interest is also charged on any penalties you owe, including late filing penalties. Interest compounds daily and adds up quickly. In many cases, the penalties and interest can end up being greater than the amount you originally owed.

If you are overdue on your tax returns, there are two ways to seek relief from penalties and interest. If the CRA has not pursued enforcement action or issued an arbitrary assessment against you, you may be able to file your tax returns under the Voluntary Disclosure Program. Should you qualify, the CRA will waive the related penalties and significantly reduce the interest charged in relation to those tax amounts.

Alternatively, if you don’t qualify for relief under the Voluntary Disclosures program, and certain extraordinary circumstances have impacted your ability to file your returns on time, or you are struggling to pay the penalties and interest on your account, you may qualify to have the penalties and/or interest reduced under the Taxpayer Relief Program.

Qualifying for either program requires that certain conditions be met, and your case be presented in the most compelling way possible.

If you’re considering relief, don’t hesitate to contact us today to set up a confidential consultation.

The CRA collector cannot reduce the amount of the principal portion of your tax arrears.  The collector can be engaged to negotiate payment terms and the removal or prevention of enforcement action.  However, the collector will not take less than 100% of the amount owing.  Like any other debt (i.e. credit card balance, mortgage, etc.), your tax arrears will continue to accumulate interest until it is paid in full.

Don’t hesitate to contact us today to set up a confidential consultation.

The CRA has a few programs which can provide relief from interest and penalties, subject to a taxpayer’s eligibility. The Voluntary Disclosures Program allows taxpayers to come forward voluntarily on unfiled tax returns and/or correct errors or omissions on previously filed tax returns. A successful outcome to your voluntary disclosure would result in the CRA waiving all the applicable penalties and significantly reducing the arrears interest.

The Taxpayer Relief Program can provide relief from penalties and interest for taxpayers who have significant financial hardship, are facing extraordinary circumstances or have suffered due to actions of the CRA.

Don’t hesitate to contact us today to set up a confidential consultation.

If you have sold real estate, stocks or any other investments, the CRA can classify your profits or losses as either capital or business income.

Capital Gains:

The taxation of capital gains is considered under section 38 of the Income Tax Act. If you have made a capital gain, only half of that is taxable. Similarly, a capital loss is also calculated at 50%. Moreover, capital losses can only be deducted in your tax returns against other capital gains. They can be deducted from capital gains 3 years back, or for any future capital gains.

Business Income:

If your sale is treated as business income or loss, it is subject to the full extent of regular tax rates. Unlike capital gains, business income is taxed in full at the marginal tax rate. Business losses are fully deductible, even against other forms of income, including employment or office.

To determine which category the transaction belongs to, the CRA will have to prove that the property is either capital property or business inventory. This is primarily based on the original intention behind acquiring the property. If you bought the property for investment purposes and for long-term growth, it is most likely capital property. However, if you bought the property with the intention of selling immediately, or flipping it in the case of real estate, it will likely be considered as inventory.

If you are selling your house, having it categorized as a capital property can be very advantageous. Under paragraph 40(1)(a) of the Income Tax Act, if the property qualifies as a principal residence, the whole gain is exempt from tax. For this reason, the CRA will scrutinize every relevant factor, including:

  • the original purpose of purchasing the home
  • how long the home was held for
  • facts regarding the sale of the house
  • whether anything may suggest you are in the industry of flipping houses such as your profession or trade

Similarly, if you are selling stocks or other investments, but frequently engage in day trading or work in the finance industry, the CRA may categorize the sale profits as business income rather than capital gains.

The CRA will likely take an aggressive position when auditing you, especially when dealing with categorizations like capital versus business income. Our team can help represent you to the CRA and help you win.

Don’t hesitate to contact us today to set up a confidential consultation.

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