Practising tax law must sometimes feel like walking a tightrope without a net. One small misstep can have drastic consequences. And the world of tax law is in perpetual motion. A good tax plan today might be a bad plan tomorrow. Amendments to the Income Tax Act, changes in Canada Revenue Agency policy or new developments in tax jurisprudence can have unexpected ramifications.
Each year, we receive 20 to 25 tax-related claims. While this number may seem relatively small, the potential losses are not. In fact, they often exceed the limits of the policy.
In this three-minute video, Claims Counsel Marlon Song reveals the most common tax mistakes and our top tips to help you avoid them.
A final note of caution: buy excess insurance if you're giving tax advice. Although the $1 million policy limit offers generous financial protection for the majority of lawyers, it may not be enough to protect you if you give negligent tax advice. You can find a list here of brokers with excess liability insurance programs for lawyers.
Additional resources can be found here:
PTT and Foreign Buyers' Tax
GST - Traps and Tips
Tax: Risks and tip
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