As an entrepreneur, the fiscal aspect of your business is probably the one that gives you the most challenges. Neglected in many companies, taxation allows you to understand the imposition and optimization of your returns well.
In other words, having a good understanding of tax issues could allow you to make more profits by minimizing additional costs .
In this case, the help of a tax expert can be greatly useful to you. However, it is important to understand the difference between a lawyer specialized in tax law and a tax accountant.
Thanks to JuriGo, see the differences between professionals and the services they offer!
A tax specialist - what is it?
In Quebec, contrary to what one might think, the title of tax specialist is not regulated. Therefore, it is possible for any professional to use the title in their practice.
Therefore, you must double your efforts when you are trying to find the tax specialist you are looking for. Whether he is an accountant or a lawyer, the tax specialist is a professional in tax laws . He is therefore ready to advise his clients on methods to use in order to reduce the impact of these laws on their profits.
Mainly, this assistance will help you save your money on taxes that your company will have to pay. The services of a tax specialist are available to everyone. However, it can be even more interesting for a company to require the services of this professional.
There areseveral advantages for businesses in tax laws. However, it is common for these to be unknown by entrepreneurs. The tax specialist can therefore play an important role in guiding the company towards the best decisions.
Specifically, a tax specialist, whether a lawyer or accountant, can provide advice in several areas:
- Business incorporation,
- Tax reduction, and
- Capital gains exemption.
All these services usually have the same goal: optimizing your taxation in order to save you as much money as possible.
Good to know! In Quebec, a tax specialist will normally charge an hourly rate of about $350/h. However, for experienced tax lawyers, it is quite possible that they charge amounts close to $500/h.
Lawyer and Accountant - the differences in training!
The field of taxation overlaps the fields of law and accounting. Therefore, it is possible for these two professionals to become tax specialists.
However, their training will not be the same and there are certain differences in the services they can offer you, especially because of their respective professional order.
| Profession | Training to follow | ||
|---|---|---|---|
| Bachelor's degree | Professional Order | Masters | |
| Tax Lawyer | Bachelor's degree in law | Member of the Quebec Bar | Master's in Tax Law |
| Tax Accountant | Bachelor's degree in accounting | Order of Chartered Professional Accountants (CPA) | Master's in Taxation |
The training of the tax lawyer
In order to become a tax lawyer, the first step is to become a lawyer . To do this, you will first need to go through the bachelor's degree training in law at one of the recognized universities in Quebec.
Indeed, it is necessary that your bachelor's degree can make you eligible for the Quebec Bar. Therefore, you can join the ranks of Quebec universities or the University of Ottawa.
After obtaining your bachelor's degree in law, you will need to follow the training and pass the Bar exams. If you pass these exams, you will have to follow your 6-month professional internship to officially become a lawyer.
After receiving the title of lawyer, you will have to obtain a master's degree in taxation. Depending on the program they decide to follow, they can also obtain a master's degree in tax law.
The training of the tax accountant
The training of the tax accountant follows the same structure as for the lawyer. Indeed, they must first start with obtaining a bachelor's degree in accounting from a university recognized by the Order of Chartered Professional Accountants.
This program can also be known as a bachelor's in accounting sciences or in business administration with a concentration in accounting.
After obtaining this title, they will need to follow the training offered by the CPA Order, which will be followed by a professional internship of 24 months. The obtaining of the title of accountant will be formalized by the success of the final common exam.
Ultimately, he will also have to pursue a master's in taxation in order to acquire the necessary knowledge to practice the profession.
Why choose a tax lawyer?
Beyond the training of tax professionals, there are certain advantages to choosing a tax lawyer over an accountant. Indeed, there are some aspects of the profession that cannot be practiced by an accountant.
This is possible due to the benefits and powers that the title of lawyer offers in Quebec. The following services can be offered exclusively by the tax lawyer.
1) Tax litigation
The lawyer, being the only professional who can represent a client in legal matters, it is normal that tax litigation is reserved for him.
In the life of a business, it is quite possible that it may confront the tax authorities of its place of activity. This could be a simple verification of the business, or even a dispute before a judge. No matter your situation, you will need a lawyer specialized in tax law.
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Indeed, the accountant can obviously accompany you and offer you advice. However, the lawyer is the only one who can represent you in case of a dispute with government agencies.
In the event that you intend to contest a decision of the agency in court, the lawyer will be the professional for you!
2) Professional secrecy
In order for the tax specialist to be truly useful to you, it will be necessary for you to disclose certain sensitive information about your business.
This information can sometimes pose a risk to you if a competitor receives it. Fortunately, the lawyer is obliged to maintain professional secrecy . Therefore, if you disclose any information to him, he cannot talk to anyone about it.
This is not the case with the accountant. His professional order does not require him to keep the information to himself and therefore, there is always a risk that he will disclose the information.
3) Corporate reorganization
The lawyer specializing in tax law can also help you in the event that you wish to carry out a reorganization of your company's structure . Indeed, this can be very useful if you wish to reduce your tax.
Since this action is strictly legal, the tax accountant will not be able to help you and you will automatically have to turn to the lawyer.
| Important! It is possible that some operations may require the help of both tax specialists. Indeed, the accountant will have an overview and can therefore offer advice on the company's taxation. |
|---|
For example, if you wish to incorporate your business, you will be able to take advantage of the many benefits associated with incorporation of a company in Quebec.
4) The tax memorandum
Finally, the last area where the tax lawyer can be extremely useful is in the execution of a tax memorandum. The memorandum is a document in which the company will receive tax optimization strategies.
This is a document that will normally be prepared by the accountant specializing in taxation. However, when executing the advice, the legal documents will have to be drafted by the specialist lawyer. Normally, this execution will be done through an incorporation, a trust or a change in the type of business.
Fortunately, thanks to its form, JuriGo can quickly and freely recommend you to a specialist lawyer!
In what contexts should you choose the tax accountant?
Unlike the lawyer specialized in tax law, the accountant has more of a utility and a global experience in the fields of taxation. Indeed, the latter will normally act in everyday situations.
His practice has more of a global perspective and will allow you to cover all the tax aspects of your business.
1) Optimizing the structure of your business
The tax memorandum of your business is normally the task of the accountant who, subsequently, will leave the execution to the lawyer.
The accountant, due to his understanding of the tax aspects of the business, can suggest a complete reorganization of your company to improve your tax optimization.
2) Minimize your company's tax
Like anyone in Quebec, the company will have to annually pay federal and provincial taxes. The tax return is a task that falls to the accountant within the company. He is the most capable of finding ways to reduce your annual tax.
3) Provide tax planning
The tax accountant is usually the one who knows the most about the financial details of the company in question. He is therefore extremely useful when it comes to financial planning.
Being your accountant, he is already aware of your financial statements and is already responsible for preparing your tax returns. As for tax planning, it is better to deal with the tax accountant rather than the tax lawyer.
Between the accountant and the lawyer - which one should I hire?
The answer is simple: both! Indeed, even if many respective skills overlap, it remains that they each have their respective tasks and their own expertise.
Therefore, employing both a lawyer and a tax accountant can allow you to have the best tax optimization and save a lot of money!
The tax lawyer will be your expert who will be able to answer all your legal questions. He will allow you to draft the necessary legal documents and can represent you in case of dispute concerning tax domains.
The tax accountant will give you an accurate assessment of your business value and an overall picture of your situation. For example, in case of selling your business, the accountant will be able to evaluate your business to get as much money as possible.
Find the professional you need thanks to JuriGo!
Now that you have an overall picture of the differences between the lawyer and the accountant with a specialization in taxation, you are able to know which one you need.
For the proper functioning of your business, it is recommended to deal with both types of professionals. However, it is possible that your situation only requires the intervention of one of them.
If you are looking for a lawyer specialized in taxation for businesses, JuriGo is the solution for you. Thanks to its vast network of lawyers specialized in several fields, it will be easy for you to find the professional you need for free.
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