Fancy Pants Inc is a successful clothing company based in Calgary.In the past few years, sales have skyrocketed and revenues have grown enormously.Like many successful businesses, Fancy Pants has employed various strategies in an attempt to reduce its tax liabilities.Unfortunately, Fancy Pants also shares one other similarity with many other Canadian companies: it has fallen into dispute regarding the amount that it owes in federal taxes.Which of the following statements is most likely to be TRUE?

Question

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The statement that "depending upon the circumstances, Fancy Pants may present its arguments four times: during an administrative appeal, in the Tax Court, in the Federal Court, and (if permission is granted) in the Supreme Court of Canada" is the most likely to be true. A and B are incorrect because the Canada Revenue Agency (CRA) is the correct name of the government branch responsible for tax administration and compliance. Additionally, it is the CRA that issues the Notice of Assessment, not the taxpayer. D is incorrect because decisions of the Tax Court can be appealed to the Federal Court of Appeal. E is incorrect because a field audit involves a government official physically visiting the taxpayer's place of business, not its customers. An office audit, on the other hand, involves an examination of the taxpayer's records.

Fancy Pants Inc Is a Successful Clothing Company Based in Calgary.In