Takesies-backsies are permitted-Landbouwbedrijf Backx B.V.
Conclusion: the Minister and her agent the CRA can suck in some years and blow in others. This complicates tax planning and is something that I often find myself explaining to clients. It doesn’t matter that [filing position X] was accepted in prior years, or that the CRA did not take issue with [filing position X] in other audits or reviews, each year is a fresh game, with new rules, and new audit risks. When working on a tax plan, it is prudent to always turn your mind to preparing an audit file to defend each and every filing position.
Read More
The Basics of an Income Tax Audit
An income tax audit often causes individuals and businesses to fear the skeletons in their closet.
No matter how prepared you are, or how meticulous your record keeping, having to review your books and records for every single deductible expense is a drag.
In this post, we’ll review the basics of an income tax audit.
Read More
Signed, sealed, and delivered, please.
Normally, the CRA comes a knockin’ at businesses doors to review relevant books and records in an audit. As it turns out, you cannot spurn Her Majesty thrice without paying for it.
In a motion Montana, 2019 FC 900, by Minister of National Revenue for order that documents subject to order in audit be sent to Minister, the Court sided with the Minister because of the egregious lack of audit compliance of the taxpayer.
In this case, the Minister sought an order of the court to order that the taxpayer deliver documents to the Minister’s premises.
Read More
Excess contributions in TFSA - Recent Federal Court decision overturns CRA
In the recent Federal Court case, Sangha v Canada (A.G.), the taxpayer inadvertently over-contributed to his TFSA account.
The CRA first sent him a warning letter (referred to in the decision as the June 2017 Letter), the June 2017 Letter informed him that he should withdraw excess amounts immediately and that future excess contributions will be subject to a 1% tax per month pursuant to the Income Tax Act (ITA). In accordance with the letter, the taxpayer withdrew the entire balance of his TFSA. Unfortunately, he contributed an additional amount in September of the same year, which resulted in a further excess contribution. The CRA issued TFSA tax assessments for the two taxation years in which the taxpayer had excess contributions.
If you think you or your client may have excess contributions in TFSAs, review the CRA’s guide on taxes payable on TFSAs can be viewed here: CRA's communique on excess TFSA contributions and contact me if you have any questions by clicking on the button below. Click to read more
Read More
Vavilov and CRA Decisions - The Standard of Review for Statutory Appeals
In the Supreme Court of Canada’s decision, Canada (Minister of Citizenship and Immigration) re Vavilov, 2019 SCC 65 , the SCC decided that for statutory appeals, a court’s review of the original decision maker’s determination is to be decided on the appellate standard of review as set out in the seminal decision of Housen v. Nikolaisen, 2002 SCC 33.
Read More
New article in the National Post - 'Do not impose a stop pay': Federal workers ordered to ignore cheating in CERB and EI claims
See May 12, 2020 National Post article. Some interesting comments on CERB and its administration:
"Employment minister Carla Qualtrough has said the government knew there was a heightened risk of fraud with the pandemic-aid programs but wanted to get the money out to Canadians in need as quickly as possible, working later to claw back any unwarranted payments... Marielle Hossack, a spokeswoman for Qualtrough, said the system was designed to disperse the funds quickly with “backend safeguards” to ensure that any payments made to ineligible recipients are eventually repaid."
Read More
Molly Luu featured in The Toronto Star
On Tuesday April 28th, the Liberal government suggested it will prohibit entities "who evade or avoid tax" from receiving aid. Yesterday, it wavered. See my commentary on effecting such a limit on relief, as quoted in the Toronto Star article: Justin Trudeau's Position on COVID-19 Bailouts for Tax Haven Companies Gets Murkier.
Read More
Check out my article on Non-Resident Speculation Taxes in Taxes & Wealth Management
Please check out my article via TaxNetPro, called “Debating Rebates of NRST” (the Non-Resident Speculation Tax).
Read More
