Unfortunately… Business is Booming!

Business is booming!

BOOM

I’m of two minds as I write this post.

First off, I am very excited that business is booming!  Emails never stop coming in, social media questions, posts, inquiries roll in, and my phone does not stop ringing, but on the other hand I’m a bit disturbed that business is booming because it means that there are a lot of people in tax trouble with the Canada Revenue Agency (CRA), and they ALL need my help.

With that in mind, here are the 13 things about my tax solution business – and any other business offering tax services – that you need to know so that you can make an informed choice.

13. If you have a Revenue Canada collections problem, would it not make the most sense to take advice from a former Revenue Canada Collector?  Someone who collected taxes, knows the ins and outs of the policy, procedures and legislation?  How about if that person also served as a resource office whose job it was to prepare accounts for assessments and produce them to the Department of Justice?  And what if that person also led teams and managed staff and projects in Collections?  Then you would have the best possibly option representing your interests.  Welcome to inTAXicating.  That is what we do!

12.  Accountants are awesome, and they are busy and you hire them to do accounting work, so they may not have the time to spend on the phone with the CRA negotiating your arrangement or trying to remove a garnishment.  Or, they may get to a point where the CRA refuses to budge and you have no bank account to use.  That is simply not acceptable!

11.   I worked for the CRA for almost 11-years, and I started as an entry-level collector, worked my way up through collections and along the way I led teams, trained staff, and handled some of the most complex files in the Tax Office. I was the resource officer for 5-years, and the Employee of the Year in 2002.  I was their go-to guy, and I still am. I’ll tell you like it is, and I’ll tell the CRA like it is.

10.   If you have a tax / collections / CRA question, you can and should ask it here.  I can tell you what the CRA is doing, and most importantly what they are going to be doing in the near future.  Email me or send it through social media, and I’ll answer it personally.

9. Respect. Given… and Earned. I treat you with respect and I treat the CRA with respect, because nobody wants to work with a representative who calls them “taxman”.  Trust me.  Talk about starting a relationship off on the wrong foot…

8. I do not prepare tax returns. I will not recommend you go bankrupt, and I do not pretend to have an office of “former CRA agents” armed at your disposal.  What I do have is a wonderful relationship with the best tax lawyer in Toronto, the best mortgage broker, CA’s, bookkeepers, financial planner, trustee plus my actual network of former colleagues at the CRA at your disposal.

7. You can hire me for an hour-long meeting after which I will give you a written report of our discussion along with my recommended course of action and the CRA’s probable plan of action. I will also tell you if you can handle it, and at what point you need to circle back to me.

6. I will not take you on as a client if you do not need my services.  I have a reputation to uphold.

5. You can take advantage of my fixed fee service for the entire length of the tax problem(s) so that you have the piece of mind your matters are being dealt with and that when we speak that you are not on the clock. Questions need to be asked and answered, and resolving your tax problem is the only priority, not padding your bill.

4. Areas of expertise include; Collections, Enforcement, Liens, Director’s Liability assessments, S160 assessments, RTP’s, debt management, negotiation and not just limited to the CRA. I’ve fixed tax problems relating to Revenu Quebec, the IRS, Workers Comp (WSIB) and the CRTC.

3. My website sucks! Yes, it does because I’ve been too busy to provide the content to the web developer for correcting. I’m okay with it too, but I will be changing it, soon.   My thought is that it’s better to have an adequate static website and spend my time solving tax problems, than spend millions of dollars a month on advertising then having to increase my fees so that you can pay my bills.

2. Some of the terms used to describe me and the services I perform are; x-taxer, priceless, unbelievable, compassionate, and informative, just to list a few descriptions of me and my business.  I care.

1. I’m really good at what I do. I know the CRA better than they do, and I certainly know what the collectors can and cannot do.  I fix tax problems and I enjoy it.  I am passionate about tax.  You might say I’m slightly inTAXicated.

 

So whether you just received a tax notice that you are not 100% sure about, or if you have a long history of being in Collections at the CRA, I can help you understand what you need to do.  I can navigate you through a Director’s Liability assessment where I have saved firms hundred of thousands of dollars, or negotiate the removal of a lien so you can finalize a house sale or divorce.  I can have your tax returns re-filed with correct figures to reduce balances, or bring your payroll up-to-date.

Two weeks ago a phone question resulted in a corporation not having to pay a $350,000 liability due to statute of limitations, and last week an hour long meeting uncovered 10 plus years of fraud being committed on a business by their CA.

inTAXicating

http://www.intaxicating.ca

416.833.1581

info@intaxicating.ca

@intaxicating

http://www.facebook.com/intaxicating

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Toronto-based but Canada-wide!

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Proposals Not Just For Marriage

Most people are familiar with the concept of bankruptcy. Creditors are owed money, assets are liquidated and the liquidation proceeds are paid to creditors. The process is usually very difficult for the person filing bankruptcy as his/her assets may consist of a family home or a cottage, which possibly has been in the family for generations. The disruption can be devastating for the family and their children.

The Bankruptcy and Insolvency Act (BIA), the federal statute that governs bankruptcy and restructuring in Canada, provides an option other than bankruptcy.

The BIA allows an insolvent person whose aggregate debts are less than $250,000 (not including mortgages on residential property) to file what is known as a “consumer proposal”. A consumer proposal is not the same as bankruptcy, even though they are both governed by the same laws.

A consumer proposal is a formal settlement between a debtor and his/her creditors of all unsecured debts for an agreed upon amount. The settlement does not have to be for the full amount of all debts but can be for a fraction of the total owed. The debtor makes one monthly payment to the administrator of the proposal, who in turn makes dividend payments to the creditors.

More specifically, a person who is unable to meet their monthly debt payments meets with a qualified professional, who administers consumer proposals, and they discuss the ability of the debtor to make monthly payments. Together, they review the monthly income and expense statement of the debtor, as well as his/her net worth, to determine how much the debtor is able to pay each month. Once a monthly amount is determined the administrator notifies the creditors and helps to finalize a settlement agreement between the debtor and the creditors. Fifty percent (in dollar value) of the creditors must vote to accept the proposal for it to become binding on all.

The main difference between a consumer proposal and a bankruptcy is that in the case of the proposal the debtor’s assets are not liquidated. The debtor receives the same protection from creditors and collectors but retains control of his/her assets. The two obvious benefits are that there is no loss of assets and no family disruption.

One might ask “Well why don’t I just call all my creditors and work out my own settlement?” This will not necessarily work because, for example, if you have five creditors and you are able to settle with only
three of them, the remaining two are not forced to settle. They can still pursue you for the amounts they are owed. In a consumer proposal, all creditors are dealt with together and receive the same payment plan. As consumer proposals are governed by federal law, any settlement is enforced by the courts and creditors are required to accept the settlement in full and final satisfaction of all debts. So the debtor gets to keep his/her assets, he makes monthly payments to satisfy all debts over time and the creditors receive payments, which are greater than what they would have received if the debtor had filed bankruptcy.

Consumer proposals comprise an increasingly large percentage of overall personal insolvency filings in Canada. For records ending November 30, 2010, 31% of all consumer insolvencies in Canada were
consumer proposals. This is up dramatically from ten years ago when the majority filed for bankruptcy, having had no knowledge of the alternative.

In today’s economic environment, it’s important that people know what options they have to deal with debt. Canada’s insolvency laws mean that today, “Proposals are not just for marriage anymore”.

 

Reference:
Office of the Superintendent of Bankruptcy. Insolvency Statistics in Canada – November 2010. Retrieved 2011, from http://www.ic.gc.ca/eic/site/bsf-osb.nsf/eng/br02528.html

TODD HOWELL
Todd Howell is a licensed Trustee in bankruptcy and has over 13 years of experience in the bankruptcy and insolvency field. Todd is also a certified Insolvency Counsellor and a member of the Canadian
Association of Insolvency and Restructuring Professionals.

Connect with Todd at: 416.963.7198 or todd.howell@crowesoberman.com.
http://www.linkedin.com/in/toddhowell1

 

 

This article was originally published in Crowe Soberman’s quarterly business newsletter – Comments and is intended for clients of the firm. inTAXicating has been granted permission to repost this article solely for informative purposes. Should you require any assistance, we encourage you to contact the author(s) toll free at 1.877.929.2501, or in the GTA at 416.929.2500.

 

More articles can be found here; http://www.crowehorwath.net/SOBERMAN/services/advisory/Personal_Insolvency/Personal_Insolvency.aspx

 

Congratulations to inTAXicating for finishing 2nd in the 2013 Canadian Blog Awards!

I recently received word that this blog, inTAXicating, finished 2nd in the Legal / Professional category of the Canadian Blog Awards.2013 Canadian Blog Awards

The Canadian Blog Awards is an annual event on the Canadian Blogosphere in which Canadian Bloggers and Blog Readers vote to decide which blog is the best – either overall or within a category.

This year (2013), the Canadian Blog Awards are being operated by Jonathan Kleiman, a Toronto Small Claims Court Lawyer and Toronto Business Lawyer.

The first Canadian Blog Awards were held in 2004, by Robert McClelland of MyBlahg.  He hosted the awards for 2005 and 2006 before handing them over to a coalition of bloggers and business owners keen on recognizing Canadian blogging talent.

Aside from being thrilled at the nomination, I am excited and content with the 2nd place finish because it means that not only is there plenty of room for improvement, but that people understand that in order to help themselves save taxes, or fix tax troubles, they need to read online to see what the experts are recommending.

With the CRA moving more and more online in everything they do, it only makes sense that you, the taxpayer, keeps up to speed as well, or at the very least, read and learn from people who were on the inside… For a long time… And who grew up in that space, trained the staff in that space and led staff in that space.

Thank you for voting for this blog and for dropping by for tips, suggestions and recommendations on how to best handle your tax questions or tax problems.

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Make sure to visit http://www.intaxicating.ca but what you really want to do, is contact us at info@intaxicating.ca or by phone at 416.833.1581 to have your questions answered or to have your tax problems solved.

#x-taxer