Jobs rebound, hot inflation bolster case for Bank of Canada rate hike
19 October 2021
Credit: Reuters
Canada’s return to pre-pandemic job levels has likely sealed the deal on the Bank of Canada ending its quantitative easing program this month and, coupled with red hot inflation, bolsters the case for the central bank to move more quickly on rate hikes, analysts say.
Canada’s economy seen rebounding on hospitality sector growth
12 October 2021
Credit: Reuters
Canada’s economy likely rebounded in August from a slight contraction in July, buoyed by growth in the hospitality industry, though a withering drought will continue to drag on the important agriculture sector, data showed on Friday.
‘Incredibly easy’: Pandora papers reveal simplicity in taking advantage of tax havens
5 October 2021
Credit: CTV News
In light of a bombshell report that exposed the tax havens used by the world’s elite, new focus has emerged on how easy it is to create a trust or shell company that can shield the owner from taxes.
Bank of Canada keeps key interest rate steady at 0.25%
10 March 2021
Credit: Global News
The Bank of Canada kept its key interest rate on hold Wednesday even as it said it now expects the economy will grow over the first three months of this year, an about-face from its previous forecast just weeks ago that 2021 would begin with an economic slump.
Canada’s tourism economy suffers unprecedented losses in 2020
9 March 2021
Credit: Global Times
Canada’s tourism economy suffered unprecedented losses in 2020 due to the COVID-19 pandemic and is by far the most threatened sector in the country’s economy, according to Destination Canada on Monday.
After worst year on record, Canadian economy enters 2021 with double digit growth
4 March 2021
Credit: ctvnews
The Canadian economy sprinted to the finish line of 2020 with nearly double-digit growth in the fourth quarter, ending its worst year on record on a strong note that has continued into the start of 2021.
Tax season off to rocky start at CRA say Canadian accountants
23 February 2021
Credit: Canadian Accountant
Canadian tax professionals are expressing concern as to whether the Canada Revenue Agency is truly prepared for “a tax season like no other.” Recent reports of call centre outsourcing and cybersecurity breaches have alarmed accounting practitioners who are facing a variety of challenges due to the COVID-19 pandemic.
Canada audited $450b in international money transfers. Could there really have been none that broke the rules?
25 November 2020
Credit: The Star
The Canada Revenue Agency says it reviewed almost half a trillion dollars in international money transfers and referred none for criminal investigation, prompting surprise from one expert and concerns from the NDP that the Liberal government isn’t doing enough to crack down on offshore tax evasion.
A guaranteed minimum income would be more effective than current government programs
16 November 2020
Credit: Policy Options
Replacing the raft of recovery benefits with a simple, permanent guaranteed income would be an automatic stabilizer for people and the economy.
What a wealth tax could mean for financial planning
12 November 2020
Credit: The Globe and Mail
Canada’s federal government is considering a wealth tax to reduce inequality and to pay for the relief measures that were implemented in response to the COVID-19 pandemic.
Canada Revenue Agency: Your CPP Taxes Will Increase in 2021!
4 November 2020
Credit: The Motley Fool
If you’re a working-age Canadian, your tax bill is going to increase significantly next year. Thanks to a new CRA announcement, the portion of your paycheque that goes to CPP premiums will increase dramatically.
Tax Tip – Canada Revenue Agency announces maximum pensionable earnings for 2021
3 November 2020
Credit: News Wire
The maximum pensionable earnings under the Canada Pension Plan (CPP) for 2021 will be $61,600—up from $58,700 in 2020. The new ceiling was calculated according to a CPP legislated formula that takes into account the growth in average weekly wages and salaries in Canada.
Suspicious activity found on 48,000 CRA accounts after cyberattacks: treasury board
18 September 2020
Credit: CBC
The Canada Revenue Agency is investigating two online hacking incidents affecting the personal information of thousands of Canadians.
Canada Revenue Agency announces new T4 reporting requirements
2 September 2020
Credit: Mondaq
The Canada Revenue Agency (“CRA”) recently announced that employers will be required to comply with additional T4 reporting requirements for the 2020 tax year to help the CRA validate payments made under the CERB, CEWS and CESB.
Canada Revenue Agency extends tax payment deadline to Sept. 30
27 July 2020
Credit: CTV News
The Canada Revenue Agency says the payment deadline has been moved to Sept. 30 for individuals, corporations and trusts that had various deadlines through the month.
CRA’s policy for saying sorry to taxpayers
24 July 2020
Credit: Tax Page
The Canada Revenue Agency (“CRA”) thinks it is time to draft a national policy for issuing apologies to taxpayers for its mistakes. Currently, the CRA does not have a formal guideline in place on what to say to taxpayers for its mistakes, which are addressed on a case by case basis.
CRA Guidance On COVID-19 And Tax Residence – Canadian Income Tax
9 July 2020
Credit: Mondaq
The Canada Revenue Agency (“CRA”) has published some administrative guidance about how the pandemic will influence the CRA’s interpretation of the criteria for Canadian tax residence established under Canadian tax law.
Your 2019 tax return checklist
6 July 2020
Credit: Mondaq
Good news! The Canada Revenue Agency (CRA) has extended the deadline for filing your 2019 tax return. But if you’re expecting a refund, now is the time to get organized and file ahead of the end-of-season rush.
Retroactive GST/HST Registration
25 June 2020
Credit: Mondaq
Anyone in Canada that carries on a commercial activity may undertake an HST registration. However, for most businesses HST registration is a legal requirement; the Excise Tax Act requires anyone undertaking a commercial activity to register for HST, however there is a significant exception.
A Canadian Tax Lawyer’s Perspective Of Tax Audits Of COVID-19 Tax Fraud Claims
25 June 2020
Credit: Mondaq
To assist individuals and businesses weather the economic downturn accompanying the ongoing COVID-19 pandemic, the Canadian government has introduced a number of COVID-19 subsidies and benefits.
There’s a great opportunity for income splitting coming up
19 June 2020
Credit: Financial Post
Canadian interest rates have fallen to record lows in recent weeks, so the upcoming drop to the Canada Revenue Agency’s prescribed rate, set to come into effect next month, opens up a potentially lucrative opportunity for some couples and families to execute an income-splitting strategy. Here’s what you need to know.
Some CRA systems are ‘systemically oppressive’ towards vulnerable populations: taxpayers’ ombudsman
17 June 2020
Credit: National Post
The federal taxpayers’ ombudsman says some of Canada Revenue Agency’s (CRA) processes are “systemically oppressive” towards vulnerable populations as well as indigenous, rural and northern communities.
Check your Canada Revenue Agency account for changes, Ottawa police warn, amid CERB fraud claims
13 June 2020
Credit: CTV News
The Ottawa police fraud unit is urging citizens to check the direct deposit credentials on their online Canada Revenue Agency accounts and toughen up passwords in the wake of fraud claims involving CERB.
CRA resumes full range of audit activities
3 June 2020
Credit: Investment Executive
The Canada Revenue Agency (CRA) has resumed its full range of audit activities, including criminal investigations, after being limited to just high-risk audits and cases with exceptional circumstances since the Covid-19 lockdown began.
COVID-19: Administrative Accommodations By The Canada Revenue Agency (“CRA”) With Respect To International Tax Matters
3 June 2020
Credit: Mondaq
In light of the COVID-19 crisis and the travel restrictions implemented by Canada and many other jurisdictions as well as by businesses (the “Travel Restrictions”), the CRA has temporarily relaxed the way it administers certain rules and requirements contained in the Income Tax Act (Canada) (“ITA”) to account for the “forced” and involuntary presence of many non-residents in Canada for an extended period of time.
Important changes to tax filers after COVID-19 pushed CRA’s deadline back
29 May 2020
Credit: Yahoo Finance
Canadian tax-filers got a bit of a reprieve because of COVID-19, but the deadline to file is once again upon us.
How to stop the CRA from taking back your $2,000 CERB!
26 May 2020
Credit: Fool CA
It’s not a loan, and the government isn’t going to take that money back once it’s all over. You will have to pay taxes on it. But that’s only if you are truly eligible.
Canada Revenue Agency: 2 Tax Deductions You Don’t Want to Miss
11 May 2020
Credit: Fool CA
The COVID-19 pandemic has disrupted the lives of people around the world. Canadians are suffering through the most challenging times as millions have been laid off, and the economy is in tatters due to the economic shutdown.
What you need to know about this year’s tax-filing extension
30 April 2020
Credit: Money Sense
Recognizing the financial upheaval caused by COVID-19, the Canada Revenue Agency has given most of us extra month to file
Canada Revenue Agency: 3 Huge Tax Changes You Need to Know in 2020!
15 April 2020
Credit: Fool.ca
Due to the ongoing COVID-19 outbreak, the Canada Revenue Agency is making a number of changes in 2020. These include filing and payment extensions, along with a number of extra cash transfers. The extensions apply to the 2019 tax year while the cash transfers are new for 2020.
How to get your tax refund as quickly as possible amid the COVID-19 crisis
6 April 2020
Credit: Business Financial Post
While the government may have extended the 2019 personal tax filing general deadline from April 30 to June 1, 2020 as result of the COVID-19 pandemic, Canadians expecting a tax refund may wish to file as soon as possible to get any much-needed cash owed to them by the CRA.
COVID-19: Canadian Tax-Relief
30 March 2020
Credit: Mondaq
On March 18, 2020 the Federal Government announced changes to the federal tax regime to address the difficulties faced by taxpayers due to the COVID-19 crisis.
How to get your tax refund as quickly as possible amid the COVID-19 crisis
25 March 2020
Credit: Financial Post
CRA continues to process returns and encourages Canadians to file electronically — here’s what you need to know.
Tax And Real Estate – Tax Authorities Scrutinizing Real Estate Transactions
23 March 2020
Credit: Mondaq
Following the Budget 2019 announcements, the Canada Revenue Agency (“CRA”) launched a Real Estate Task Force whose mission is to deter tax non-compliance in the real estate market.
The tax deadline has been extended due to the COVID-19 crisis
18 March 2020
Credit: CTV News
The federal government is giving Canadians more time to file and pay their taxes this year, as a result of the COVID-19 pandemic.
Canada to give income support during coronavirus outbreak
17 March 2020
Credit: National Post
Prime Minister Justin Trudeau said on Tuesday that the Canadian government would provide financial support to people as he urged them to stay at home to slow the spread of the coronavirus.
Be extra vigilant over CRA phone scam and other frauds
17 March 2020
Credit: NNL
Online and telephone scammers are not taking a break over the COVID-19 situation.
‘$1B in unclaimed funds’: New CRA feature helps 58,000 Canadians find their uncashed cheques
12 March 2020
Credit: CTV News
The Canada Revenue Agency is sitting on $1-billion in unclaimed tax refunds and some of that money might belong to you.
Tax system costing Canadians
12 March 2020
Credit: Advisor
Billions in benefits remain unclaimed by people who are entitled to them.
Tax season: 5 costly mistakes to avoid this year
9 March 2020
Credit: CTV News
When most people think about making a mistake on their tax return, their fears often revolve around checking the wrong box or missing key facts that might lead the Canada Revenue Agency (CRA) to audit them.
Tax Tip – What you need to know if you bought or sold a property
9 March 2020
Credit: News Wire
Did you buy or sell a property in 2019, or plan to soon? We have everything you need to help you do your taxes!
3 things to consider about the new CSRS 4200 accounting standard
5 March 2020
Credit: Canadian Accountant
The new CSRS 4200 is the most impactful on firms since tax reform in 2017, says Bridget Noonan. What should your firm’s first steps be?
What you need to know about filing your 2019 tax return
4 March 2020
Credit: Money Sense
Some people do their own tax returns using consumer software (like TurboTax), while others opt to hire a professional to do it for them. Either way, the starting point for any tax return is pulling together all the necessary documentation.
The CRA has completely redesigned the T1 Personal Income Tax return form
2 March 2020
Credit: CTV News
Your income tax package has an entirely new look this year thanks to the Canada Revenue Agency’s decision to revamp the T1 Personal Income Tax return form.
CRA puts focus on paper returns as tax-filing season opens
24 February 2020
Credit: CTV News
The Canada Revenue Agency is sending an unlikely message to kick off tax season: Paper-filers, we have not forgotten you.
The Canadian tech company that changed its mind about using your tax return to sell stuff
23 February 2020
Credit: CBC
SimpleTax promised to ‘never, ever sell’ your data — then the company itself was sold
Death is no excuse when it comes to paying the taxman his due
21 February 2020
Credit: Financial Post
Heed the lessons from this case involving two sisters, their late father’s RRIF and the Canada Revenue Agency.
New tax rules hit business
19 February 2020
Credit: Lexpert
The Organisation for Economic Cooperation and Development’s action plan on domestic tax base erosion and profit shifting, known as “BEPS,” is coming into force among countries that have signed on to it — and Canadian taxpayers are now grappling with it.
Vancouver’s 1% face hefty tax hike as B.C. seeks to quell outrage over the sky-high cost of living
18 February 2020
Credit: Financial Post
Vancouver’s richest will have to pay more income tax as British Columbia seeks to quell outrage over its prohibitive cost of living.
Report shows personal info on 144k Canadians breached by federal entities
17 February 2020
Credit: ZD Net
A handful of Canadian government departments and agencies have reportedly compromised the personal information of 144,000 individuals across 7,992 breaches experienced over the past two years.
Government of Canada strengthening corporate transparency for Canadian businesses
13 February 2020
Credit: Yahoo! Finance
The Government of Canada is ensuring that Canada is an attractive place to do business while protecting the safety and economic interests of Canadians through measures against illicit activities such as money laundering, terrorist financing, tax evasion and tax avoidance.
There are no silly questions when it comes to taxes: expert
8 February 2020
Credit: Edmonton Journal
It’s tax time, and some Canadians have some interesting things they think they can deduct.
Declaring an empty homes tax exemption? Be ready to back it up with proof, lawyer says
3 February 2020
Credit: CBC
Anyone asking for an exemption on Vancouver’s empty homes tax should be prepared to back up their claim in case they are audited, says a lawyer with experience helping people navigate the relatively new system.
The CRA just redesigned the T1 Personal Income Tax return form and there are some major changes
24 January 2020
Credit: Financial Post
Tuesday marked an auspicious day for tax professionals as it was the release date of the highly anticipated and totally redesigned T1 Personal Income Tax return that we’ll be using to file our taxes for the 2019 tax year.
Lest it catch you by surprise, here’s a primer on what’s changed on the 2019 T1 return.
Tax Law Analysis: Recent CRA guideline regarding cryptocurrency
17 January 2020
Credit: Canadian Accountant
The rise of cryptocurrency (e.g: Bitcoin, Ethereum, Litecoin), both as an investment vehicle as well as a medium of exchange, presents challenges for participants in the cryptocurrency market.
While cryptocurrency can come in different types such as dApps, Privacy Coins, and Supply Chain Coins, they tend to give rise to the same kind of tax issues in the eyes of the Canada Revenue Agency (CRA).
Police issue CRA scam warning to University of Waterloo students
16 January 2020
Credit: Global News
An increase in reports of fake Canada Revenue Agency (CRA) emails to University of Waterloo email accounts has prompted Waterloo Regional Police to issue a warning to students in the area.
Police say there have been more than 20 reports of people with University of Waterloo email accounts receiving the phoney messages, with eight reported over the past two days.
Police issue CRA scam warning to University of Waterloo students
16 January 2020
Credit: Global News
An increase in reports of fake Canada Revenue Agency (CRA) emails to University of Waterloo email accounts has prompted Waterloo Regional Police to issue a warning to students in the area.
Police say there have been more than 20 reports of people with University of Waterloo email accounts receiving the phoney messages, with eight reported over the past two days.
Tax tip – don’t get scammed!
15 January 2020
Credit: Newswire
Did you get a suspicious email, phone call, letter, or text message from someone claiming to be us? Scammers pretending to be Canada Revenue Agency (CRA) employees often contact Canadians to trick them into paying fake debts.
To protect yourself from scams, it’s important to know when and how the CRA might contact you. Here are some tips on how to identify if the CRA is trying to reach you
Gone but not forgotten, CRA enforces $422 million in unpaid MSP bills
8 January 2020
Credit: City News
If you’ve got some outstanding payments for MSP premiums, you may be getting a letter from the Canada Revenue Agency soon.
As of Jan. 1, MSP premiums are no longer, but that doesn’t mean anyone is off the hook for previous unpaid bills.
Over the years, the unpaid MSP premium total has added up and now amounts to $422 million owed to the province.
What to do if you haven’t filed an income tax return
8 January 2020
Credit: Money Sense
Millions of Canadians file their tax returns late—and if you’re one of them, you may figure that with so many others in the same boat, surely the transgression can’t be too terrible.… Right? Well, no.
Assuming you have a refund coming, it’s not a great financial plan to let Canada Revenue Agency (CRA) hold onto your money, interest-free. But if you owe money to the CRA along with your delinquent paperwork, things get bad, fast: You could face hundreds, even thousands of dollars in penalties and interest.
Long wait times, incorrect answers hand CRA call centres a D grade: CFIB
7 January 2020
Credit: Global News
The federal government’s tax information call centres have received a D grade on a new report card from the Canadian Federation of Independent Business.
The group says overall quality of service was lower and wait times were longer than in previous analysis of the Canada Revenue Agency’s call centres, although callers no longer encountered busy signals.
It found 49 per cent of the 200 test calls made by CFIB employees in June 2019 couldn’t be completed due to excessive wait times, blocked calls or disconnects.
‘A terrible experience’: The CRA asked Canadians to assess its customer service – and they didn’t hold back
3 January 2020
Credit: Financial Post
If you’ve ever been frustrated in your dealings with the Canada Revenue Agency, you’re not alone. A new report, made public in December, summarizes the findings and conclusions from the spring 2019 “Serving Canadians Better” consultations with individuals taxpayers.
The report was prepared for the chief service officer of the CRA. The CSO was introduced in 2018 to help the CRA focus “on better understanding people’s needs and expectations in order to improve service experience and deliver better outcomes for Canadians.”
‘I’m worried’: The CRA could be set to crack down on Airbnb hosts
16 December 2019
Credit: Yahoo
Canadians who rent out their homes are starting to come to grips with the reality that they can run, but not hide from the taxman.
A Surrey, B.C. host has told Yahoo Finance Canada that she makes $100,000 a year before expenses from a property that isn’t her primary residence. Yahoo Finance Canada has allowed her to remain anonymous.
“We’ve always rented long term and it was a hassle dealing with tenants,” she said.
“Airbnb makes (us) significantly more money.”
Canada Revenue Agency: 2 Stunning RRSP Stats
8 December 2019
Credit: Yahoo
We’re just a few weeks away from closing the book on the 2010s. The next decade will offer new surprises and opportunities for investors, but today I want to talk about more pressing matters.
After December bids adieu, Canadians will have only until March 2, 2020 to contribute to their registered retirement savings plans for the 2019 calendar year.
In November, I’d discussed why TFSA investors should watch out for overcontributions. This also holds true for RRSPs. On that topic, today I want to look at three RRSP stats from Statistics Canada that may surprise Canadians as we look ahead to the New Year. This data was released last year and is from the 2016 calendar year, but it’s still relevant for investors right now.
I lost my battle with the CRA, but I won the war
27 November 2019
Credit: Mondaq
My law firm cannot make the claim that we have won all of our cases in the Tax Court of Canada, but what we can tell you is that every single case we have won in tax court — either in trial or a settlement — was lost at the CRA objection stage. And in many cases, besides losing our tax assessment objection, we were also unable to convince a CRA auditor of our client’s position. In these types of cases, two different Canada Revenue Agency departments had thought we were wrong before we were able to convince a judge otherwise. So before a win or settlement in tax court, the taxpayer often has to lose twice.
Why taxpayers cannot rely on advice from the CRA: A Canadian tax lawyers perspective
18 November 2019
Credit: Mondaq
It should come as no surprise to anyone who has ever regularly dealt with the Canadian Revenue Agency (“CRA”) that the CRA isn’t always right when it comes to tax Law. That’s why the Tax Court of Canada exists. However, in cases where a taxpayer relies on incorrect information provided by the CRA to detrimental consequences, one would think that that taxpayer would be able to obtain some relief from the courts or the CRA.
Man ‘moves’ to Ottawa in canoe to make a point. Canada Revenue accepts his expenses
14 November 2019
Credit: National Post
When John Konecny was called “near treasonous” in court, he knew it was time to test the government.
He packed his belongings and moved from Whitby, Ont., to Ottawa — in a canoe — and had the government deduct his expenses.
“This was 35 years of frustration with the Canada Revenue Agency (CRA),” the recently-retired, 55-year-old teacher said in a phone interview.
Canada shares almost a million bank records with the IRS under FATCA
14 November 2019
Credit: International Investment
The number of financial records of Canadian residents being shared with the IRS has risen steadily since the information sharing agreement began — from 150,000 in 2014 to 300,000 in 2015 and 600,000 for the 2016 tax year.
Since 2014, details of over 2.6 million bank accounts have been sent from Canada to the US under FATCA for the purpose of the IRS finding out who could be subject to US taxes.
Condo flipping: A Canadian tax lawyer’s perspective
13 November 2019
Credit: Mondaq
In recent years, the Canada Revenue Agency (the “CRA”) has become more critical of real estate transactions claiming tax non-compliance has contributed to increasing housing prices. One category of transactions the CRA is examining more closely is condo flipping. CRA has had a condo flipping audit project for several years. CRA routinely contact condo developers for a list of purchasers and follows up with all of those purchasers to see if they sold the condo or are living in it.
CRA found more than $1B auditing smaller businesses last year
11 November 2019
Credit: Advisor’s Edge
The Canada Revenue Agency identified $1.185 billion from audits of small and medium-sized enterprises (SMEs) last year, said CRA officials speaking at the Canadian Tax Foundation’s Ontario Tax Conference held in Toronto in late October.
For fiscal year 2018-19, the CRA found $625 million from audits of small businesses, and $560 million of audits of medium-sized businesses, said the CRA during an audit update panel at the conference.
Airbnb tax payments do not compensate for short-term rentals’ harmful impact on B.C. housing marketing, experts say
10 November 2019
Credit: The Globe and Mail
British Columbia’s rental housing crisis goes far beyond factoring the impact of short-term rentals, according to housing experts who say more building is needed to help families find affordable homes.
Recent data from Airbnb Canada say the short-term rental company collected almost $43-million in provincial, municipal and regional taxes over the past year, which will be provided to the provincial government, regional districts and the City of Vancouver to fund housing and tourism initiatives.
20 Tax audit triggers
30 October 2019
Credit: Mondaq
Sometimes a taxpayer is randomly selected for an audit. It’s like winning the worst lottery in the world, and there’s nothing you can do to change that. But apart from a random tax audit, the odds of being targeted for an audit are dependent on a variety of risk factors.
In short, the odds of being audited depends on who you are, where you are, what you do, what types of expenses you have, and so on. Various pieces of a taxpayer’s profile may help uncover risk factors.
Canada Revenue Agency scam still roping in victims
27 October 2019
Credit: NetNewsLedger
Scam artists seem to be targetting Northwestern Ontario and Manitoba. Keeping your money and identity safe means being aware.
The Rainy River District Ontario Provincial Police (OPP) want you to confirm who you’re dealing with before sending any money anywhere for any reason.
The ever-popular Canada Revenue Agency (CRA) and other agency-related extortion threats have continued to sustain significant financial losses by unsuspecting victims.
CRA combating underground economy with Home Depot purchase records
15 October 2019
Credit: Global News
The Canada Revenue Agency (CRA) is trying to use information from Home Depot customers to crack down on the underground economy.
The company sent out letters to customers who have a commercial credit card account, notifying them Home Depot would be handing over information like business names, addresses and purchases between 2013 and 2016 to the agency.
Personal use of work smartphone, laptops by employees may become more of tax headache for Canadian employers
10 October 2019
Credit: The Globe and Mail
The use of a company-supplied smartphone, laptop or other electronic device is commonplace these days, and employers know full well that employees will use them both for work and personal purposes.
However, new guidelines from the Canada Revenue Agency suggest employers may have to take a fresh look at how much of the cost of these devices can be attributed to their commercial activities.
CRA announces prescribed interest rates for Q4
1 October 2019
Credit: Advisor
The Canada Revenue Agency (CRA) has published the prescribed annual interest rates for amounts owed to or by the agency in the fourth quarter of 2019. The only change is in the interest rate for corporate taxpayers’ pertinent loans or indebtedness, which will decrease to 5.65% from 5.67% last quarter. The interest rate charged on overdue taxes, Canada Pension Plan contributions and employment insurance premiums remains the same as last quarter, at 6%.
Lessons from more than five years of battling the taxman
19 September 2019
Credit: The Globe and Mail
Sometimes a real-life story can provide lessons for the rest of us – and for the Canada Revenue Agency (CRA). The case of Bygrave v. The Queen (2019 TCC 138) is just such a story. A decision handed down by the Tax Court of Canada on June 25 sided with the taxpayer, but Mr. Bygrave had to endure more than five years and three court decisions to win his case.
Can the CRA force a taxpayer to provide any document during a GST/HST audit?
7 August 2019
Credit: Mondaq
We regularly get asked whether the Canada Revenue Agency (“CRA”) can ask for particular documents during the course of a goods and services tax (“GST”) / harmonized sales tax (“HST”) audit or during a GST/HST appeal. Usually, the question is in the form of a statement “they are not allowed to ask for that”. Our answer to the question “Can the CRA force me to give them this document” depends upon the document that is being requested and the relevance of the document to the issue.
Being tax smart requires year-round planning
6 August 2019
Credit: Cambridge Times
If they’re like me, I suspect many Canadians tend to forget about their income taxes once they have filed their return until the following March or April when tax season rolls around again.
A recent report by IG Wealth Management highlights the importance of Canadians taking a year-round approach to tax planning by showing there is a disconnect between their level of confidence about their ability to file their income tax returns and their knowledge of the tax system.
Tax tip – protecting your personal information
6 August 2019
Credit: Newswire
One of the Canada Revenue Agency (CRA)’s top priorities is preserving the confidentiality and privacy of taxpayer information. The CRA processes more than 28 million individual income tax returns annually; as a result, an extensive privacy and security framework is in place to manage and protect personal information for all Canadians. As the privacy of information is a shared responsibility, there are a number of steps you can take to safeguard your own information.
Big or small fish, anyone is bait for a CRA tax review
6 August 2019
Credit: BNN Bloomberg
It’s tax filing season and while the average Canadian may have already filed their seemingly simple tax returns, anyone is bait for a review by the Canadian Revenue Agency (CRA), according to some experts.
“There’s no way to prevent a review or audit. It’s more a function of how your tax return looks and the size,” said Lorn Kutner, chief taxation officer at Northwood Family Office in Toronto.
What are the impacts of Canada Revenue Agency’s cap on stock option tax deductions?
25th July 2019
Credit: Mondaq
The government budget in 2019 revealed that Canada intends to cap stock option deductions for individuals because the stock option tax deduction was regressive. The government’s purpose for the stock option deduction was to allow corporations that were starting out to provide competitive salaries to desirable candidates.
CRA program that helps poor file taxes sees boost in returns in push to lift more people out of poverty
22nd July 2019
Credit: Financial Post
A federal program designed to help low-income Canadians file their taxes has boosted the number of returns it’s handled in the year since the government increased its funding.
The extra money allows volunteer-driven clinics run by more than 3,000 groups to operate year-round.
Selling real estate? The CRA is watching
18th July 2019
Credit: Advisor’s Edge
When your client sells property, the transaction must be correctly defined and reported for tax purposes. Failure to do so may result in unwanted audits, potential back taxes, and related interest and penalties. Such negative outcomes occur regularly.
With taxes, you’re guilty until proven innocent
18th July 2019
Credit: The Globe and Mail
Did you know that, in Canada, paragraph 11(d) of our Charter of Rights and Freedoms ensures that we are “to be presumed innocent until proven guilty according to law in a fair and public hearing by an independent and impartial tribunal”? Good news, isn’t it? But wait. This Charter right doesn’t apply in the matter of taxes, where the opposite is true: You’re guilty until proven innocent.
How BDC walks the talk of digital transformation
17th July 2019
Credit: Canadian Accountant
Do you remember your parents or teachers saying, “Do as I say, not as I do”? Then you probably remember tuning them out because, as humans, we tend to model the behaviour we see in others.
The same is true in business. It’s a lot easier to take advice from those who “walk the talk.”
Have foreign property? The CRA issues harsh penalties if you don’t file this form
12th July 2019
Credit: Financial Post
If you own foreign property whose total cost exceeds more than $100,000 at any point in the year, you must complete Form T1135, Foreign Income Verification Statement, and file it along with your annual income tax return.
When we think of foreign property, our minds may turn to that offshore Swiss bank account or, perhaps, a Florida rental property. But, believe it or not, a T1135 must be filed if you own foreign stocks, such as Apple Corp., Ford Motor Co. or Bank of America, in your Canadian, non-registered brokerage account.
How big property owners are manipulating B.C. Assessment’s appeals process
8th July 2019
Credit: Vancouver Courier
U.S. Congressional testimony has said that Donald Trump “inflated assets when it served his purpose and deflated his assets to reduce his real estate taxes.”
Why should anyone in B.C. care? This is common practice for B.C.’s big property owners as well. Under-assessed mega-properties are shifting property taxes to smaller commercial and residential taxpayers.
Audit Data Analytics creating a revolution in Canadian auditing
4th July 2019
Credit: Canadian Accountant
Technology’s ability to gather and process information has never been greater, with increasingly comprehensive and complex streams of data generated from all areas of an organization. However, producing data is only useful if it can be used to improve decision making, whether those choices are strategic, financial or operational in nature.
We must lower income taxes on the lower and middle classes
16th June 2019
Credit: The Post Millennial
The income tax is one of the single greatest burdens on Canadian families. While a lot of talk goes into “taxing the rich”, not much goes onto “not taxing the common man.” Thus, we must lower taxes on everyday Canadians, and surprisingly, this is something Conservatives and the NDP agree on.
Canada has a progressive marginal taxation system. This means people on the lower end of the socio-economic strata pay less as a percentage of their income than those at the higher end.
Minister of National Revenue releases fifth report in tax gap series
18th June 2019
Credit: Mirage News
The Government of Canada committed in 2016 to calculate the tax gap, fully recognizing that it would help it better target its compliance activities and ensure a tax system that is fair to all Canadians. Today, the Honourable Diane Lebouthillier, Minister of National Revenue, announced the release of the fifth report in the tax gap series. Canada is part of a select group of countries that estimate their tax gaps, including the United Kingdom, the United States, and Australia.
Real estate authorities build anti-money laundering network
April 2019
On April 9, the two real estate regulators – the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) and the Real Estate Council of British Columbia (RECBC) – announced that they have entered a memorandum of understanding (MOU) in an attempt to prevent money laundering in the real estate industry in BC.
POSSIBLE BENEFITS
The MOU allows them to share compliance-related information – which will help facilitate legal actions against money laundering, particularly in the real estate sector, in accordance with the Proceeds of Crime (Money Laundering) Act and the Terrorist Financing Act.
Canada Revenue Agency is tough on regular taxpayers but goes easy on those with offshore accounts, audit finds
22th November 2018
Credit: The Star
The tax man goes easy on wealthy Canadians with offshore bank accounts while being harsh on regular taxpayers, according to a damning report made public by the federal auditor general Tuesday.
Wealthy tax cheats are given more time to find receipts and they get their interest and penalties waived, even if they didn’t ask for it.