Being accused of tax evasion can be an intimidating experience.
A tax evasion search warrant can be executed without warning by CRA investigators.
The first you will know about it is when a team of investigators shows up at your home with police, armed with a search warrant.
If you’re lucky, you will first receive advance warning in the shape of a letter explaining that you are under investigation by the CRA. However, this is not always the case.
The tax evasion search warrant is obtained from a judge and allows a search of the home and business premises (if applicable) as well as the offices of your accountant.
The investigators will seize both hard copy records and computers/storage devices. These will be impounded and you will lose access to them for weeks or even months on end, while the team investigates the alleged tax fraud.
This can cause major disruption to a business, so part of our initial role as your tax lawyers will be to secure the release of these records as soon as possible.
If you are aware that you are under investigation by the CRA, it is advisable to make copies of all critical business records and computer files. Find a secure place to keep them offsite in a place that is not accessible by the CRA.