News and Media

CRA crackdowns incentive for service workers to declare tips on taxes

30th January 2017

An all-out crackdown on tax dodgers working in Canada’s service industries means the tax man is poised to come down on those who choose not to claim money earned in tips.

“It’s no longer a question of if the Canada Revenue Service (CRA) is going to do an audit or assessment, it’s a matter of when,” says Lisa Gittens, an H & R Block tax professional in Scarborough. “They’re being very specific, almost regimented, in their audits and assessments.”

Whether you’re cutting hair, driving a cab or waiting on tables, 15 per cent of the sales made during a shift is the amount the CRA expects service-sector workers to report on their tax returns for tip earnings, says Gittens. If the CRA finds employees haven’t reported tips or have underestimated their tips, that’s when they are likely to launch an investigation of you or your employer.

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Canada Revenue Agency monitoring Facebook, Twitter posts of some Canadians

19th January 2017

The Canada Revenue Agency is scrutinizing the Facebook pages, Twitter feeds and other social media posts of Canadians it suspects could be cheating on their taxes.

That's just one example of the agency's increasing focus on what it can learn by collecting and analyzing many kinds of data — both its own internally generated information and what it calls "publicly available information."

"The CRA does practice risk-based compliance, so for taxpayers identified as high risk, any relevant, publicly available information relating to the specific risk-based factors for the taxpayer may be consulted as part of our fact-gathering processes," said spokesperson David Walters.

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CRA Targeting Servers At High-End Restaurants

3rd January 2017

People who work in the restaurant business are on edge these days as Canada Revenue is said to be bearing down on some of the higher-end restaurants in metro.

Servers and others in the hospitality industry are compelled by law to declare their tip money as income, but every once in a while Canada Revenue will audit restaurants and some of their employees. Luc Erjavac, the Atlantic director of Restaurant Canada, says the hospitality industry is like any other in that any and all income has to be declared.

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Canada Revenue Agency targets 3 convenience stores in raids

13th December 2016

Canada Revenue Agency investigators accompanied by RCMP officers raided at least three Ottawa convenience stores on Thursday. The first raid occurred Thursday morning at the Glebe Smoke Shop on Bank Street, which reopened last week after renovations. It was closed today as CRA investigators went through documents and stock.

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