News and Media

The CRA is cracking down on aggressive manipulation of TFSAs and all other registered plans

5th October 2018


You could face a 100 per cent penalty tax on the fair market value of any 'advantage' that you receive. 

There are several anti-avoidance rules in the Income Tax Act to prevent abuse and manipulation of all registered plans, including not only TFSAs, but also RRSPs, RRIFs, RESPs and RDSPs.

As Canadians, we sure do love our TFSAs. The ability to earn tax-free investment income and gains for life, coupled with the flexibility to withdraw funds, tax-free, at any time and for any purpose and then recontribute the amounts withdrawn in a subsequent year, make these savings vehicles a favourite choice among millions of taxpayers.

 

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The CRA is tracking alcohol sales to nail tax dodging bars and restaurants

4th October 2018


Look out, bar and restaurant owners: The taxman is quietly tracking how much alcohol you buy. The Canada Revenue Agency says the data on beer, wine and liquor purchases helps it clamp down on tax dodging in a sector it claims is ripe for it.

"The restaurant industry has been identified as a high-risk sector," the CRA said in a statement. 

"The cash-based nature of the food and beverage sector, in addition to the growing use of electronic sales suppression software within this industry, make it an ongoing area of tax non-compliance concern."

The tax agency obtained a court order earlier this year allowing it to compel Ontario's Beer Store to hand over records on every bar, pub, restaurant, nightclub and banquet hall in Ontario licensed to buy commercial quantities of suds.


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Challenging CRA Tax Audits – The Reasonable Minimum Standard – Canadian Tax Lawyer Guide

18th July 2018

When a Canadian taxpayer is facing a tax audit from the CRA, the conduct and methodology of the tax auditor are subject to a "reasonable minimum standard". If the tax auditor meets this standard, the burden of proof is shifted onto the taxpayer to show the tax auditor's assessment is incorrect. If the tax auditor fails to meet this standard, the Tax Court of Canada could nullify the result of the tax audit assessment and uphold the taxpayer's original filing position.

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The Canada Revenue Agency's Battle Against Taxpayers Has Just Begun

8th May 2018

CRA is good (sort of) at collecting money owed; when it comes to administering programs that pay money out, not so much.

As we've come to the end of the first stage of tax filing season for most Canadians, people breathe a sigh of relief that their annual tax nightmare is over. But unfortunately for many, the real ordeal is just getting cued up.

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