Member of Nova Scotia First Nation charged with evading $2.2 million in taxes

The Canada Revenue Agency have announced that they have charged a member of Nova Scotia’s Millbrook First Nation with evading $2.2 million in GST/HST.

The CRA charged Lisa L. Marshall who was the operator of the Traditional Trading Post, a convenience store, located on the Cole Harbour reserve of the Millbrook First Nation using the Excise Tax Act with wilfully evading or attempting to evade compliance with that Act.

The CRA alleges that between July 1, 2010, and June 30, 2015, the store failed to collect or remit $2,284,144.72 in Goods and Services Tax (GST) and Harmonized Sales Tax (HST) related to the sale of tobacco products to non-Aboriginals.

The agency says people who fail to remit tax owing are liable not only for the full amount, but also to penalties and interest, and if convicted, the court can levy a fine of up to 200% of the tax evaded and also impose a prison term of up to 5 years.

The moral of the story here, is that if you are required to charge, collect and remit GST or HST, you should.  The CRA treats Trust Funds – money taken by registrants and held in trust until they are remitted to the Crown – very seriously, and those who misuse Trust Funds are dealt with swiftly and to the full extent of the law allowed to be used by the CRA.

 

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CRA Hires New Chief Service Officer. (It wasn’t me, but it should have been me!)

On November 1st, 2018, the CRA announced that as a result of complaints from the public related to “significant service delays”, they have launched a national consultation tour and on this tour will be promoting the appointment of a new Chief Service Officer (CSO).

That position should have been mine, but they never asked, so instead of helping the masses while working at the CRA, I’ll have to continue helping Taxpayers as inTAXicating.

While noting the introduction of a “new suite of services … leading to real results for Canadians”, or a return to the service that the CRA used to give Taxpayers, the CRA is admitting that it has a long way to go in the eyes of Canadians when it comes to providing anything related to “Customer Service”.

In March of 2018, the CRA appointed its first CSO, Mireille Laroche who happens to be a bilingual career public servant with a background in and who previously worked at the Department of Finance.

So much for the CSO helping Taxpayers with Collections issues related to the CRA because for that to happen, the CSO would need actual time working in, you know, Collections.

That being said, the CSO be classified as an Assistant Commissioner of the Service, Innovation and Integration Branch, as well as Chief Data Officer.

The Minister of National Revenue, the Honourable Diane Lebouthillier, has visited a number of remote locations over the past year to discuss service issues promising solutions, but none have come from the CRA.

Stated “improvements” coming from the CRA include; the opening of the Northern Service Centres in territorial capitals, an enhancement of the CRA’s digital services, and the implementation of a new call centre platform because the one they currently use doesn’t meet the needs of Canadians.

A CRA spokeperson stated that, “these service enhancements will address many of the frustrations Canadians have experienced when they interact with the CRA [and] while they will be of significant benefit to Canadians, they are really just the beginning of the CRA’s client-focused approach to service.”

To that statement, I disagree!  I think the public wants to be able to sit down with their Collections representative face-to-face and that the CRA’s insistence of moving collections files to these “hubs” has created additional confusion, unnecessary stress and assessment which would have been resolved in person previously.

In addition to launching both online and in-person public consultations, the CRA is holding a series of “design jams,” which, according to the CRA spokesperson, is “a collaborative brainstorming activity used to solve design problems. It is part of the ‘design thinking toolkit.’ Design jams produce prototypes, pitches, or proposals; it is the equivalent of a ‘hackathon’ but for designers. The focus is on stakeholder and participant empowerment. Rapid ideation is done with all stakeholders involved.”

Time will tell if there will be actual changes being made to the way the CRA interacts with Taxpayers, or if this is just another way for the Federal Liberal government to spend taxpayer money while touting all the “progress” that has been / will be made.