Tax Shelter Debt with the CRA? Come TONIGHT to a Meeting in Toronto

Have you participated in a Canadian Tax Shelter?

Do you owe the CRA money?

Have the promoters of the shelter taken your money and run away?

If any of these situations sound like a dilemma you are in, or going to be in, then you have a bit of time to do something about it.

The Tax Shelters they will be discussing tonight are; COIP, RLG, MLF and PGI.

If you have participated in any other tax shelter, such as GLGI, and you wish to speak with me regarding your options, please understand that the event will focus on the above 4, however, I will have time set aside after to speak with participants regarding them.

TONIGHT:

Tonight, November 21st, 2017 is your last chance this year to come and meet with tax shelter and CRA experts on the subject of their Class Defence.

Profitable Giving Canada, the leading Canadian Tax Shelter Solution provider, are especially pleased to have Mr Shy Kurtz,  LLB, BCL, the Chairman of their Legal Affairs Committee as special guest to answer questions and give an update on their Class Defence.

Don’t miss out on this important opportunity to find out how to deal with the CRA reassessments and collections.   It’s your last opportunity for quite some time to speak directly to the experts.

If you have not yet joined their Class Defence,  it is even more critical to attend.  They want to hear from you and you need our help, trust me! 
Event details:

Tuesday, November 21, 2017
7:00 PM-9:00 PM
Hampton Inn & Suites,
Register Now
If you simply cannot attend one of their 2017 final seminars,  they would be pleased to offer you a  private telephone consultation at your convenience.  Or just call them at 519 -964 – 2780

The seminar will be hosted by Mr. Jaye Torley, the President of Profitable Giving Canada.

I will be there too to answer questions on the CRA’s Collections process.

IF you wish to speak to PGC, here is their contact info:

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Insolvent or in Tax Trouble? Don’t Let the CRA Decide. You Decide!

Are you Insolvent or do you just have Tax Troubles?

Don’t let the CRA decide this for you… They want you to do what is easiest for them!  You need to do what is best for you!

In my experiences which included almost 11-years working in the Canada Revenue Agency (CRA), you should never allow the CRA to decide whether you can fix your tax problems or whether you should go bankrupt.

From the stand-point of a CRA Collections officer, going bankrupt is great because it removes the account from their inventory of accounts to collect / resolve.

Your file disappears from their inventory and re-appears in the CRA’s Insolvency Unit inventory.

From the perspective of the Collections Department, it’s case closed!

 

There are 3 ways a CRA Collections Office resolves one of their accounts;

1) Collect it / fix the compliance issue(s)

2) Write it off because they cannot collect it

3) Move the account to the Insolvency unit

 

Go Bankrupt!

The CRA’s Collections Officers are not allowed to tell you to go bankrupt. In fact, they are taught in their training that they are not allowed to do that, and that sentiment is reinforced at all future training they attend.  As someone who trained CRA Collections staff for 5-years, I can confirm this fact.

Collections staff are not allowed to even suggest that you go bankrupt.  They might confirm it, but that’s all they can do.

What CRA Collections can do, however, when they feel you are insolvent, is to force you into bankruptcy via their collection actions, which include but are not limited to;

  1. Bank garnishment
  2. Wage garnishment
  3. Lien on a property
  4. Enhanced garnishment to accounts receivables (in the case of a business)

All the while, why applying these garnishments, the CRA refuses to release the hold on the accounts.

They freeze every source of income that you might have and you are faced with the decision to come up with the funds to pay them, or file for a proposal or an assignment in bankruptcy.

In some cases, a bankruptcy is unavoidable and the right solution, but not in every case, which is why I strongly recommend speaking to someone who is looking after your interests first and foremost.

There are tax-related companies who are fronts for insolvency firms, so they might appear  to want to help you, but they want you to file for bankruptcy, and there are other tax-service firms which gather your information and they unable or unwilling to help you, pass you along to a trustee.

You don’t want or need either of those.

You need a tax firm which has the experience in CRA’s collections, and who have the relationships with not only Insolvency firms, but mortgage brokers, reputable accountants and investment professionals so that you’re options are laid out for you to decide the best option.

Not the CRA.

In order to resolve your tax issues you need to disclose the details so your options can be determined, and you need your tax help to do the same.

Ask your tax-help the following questions;

  1. Are you committed to finding me a tax-solution first.
  2. If that solution is not going to be accepted by the CRA, what other options do you feel would work.

Don’t be weary if a firm wants to charge you a small fee to diagnose and plan out your solution.

You should be weary if they want to charge you a significant amount of money to diagnose it  and not give you a plan.  If they want to keep the plan a secret, and not educate you along the way, it’s because there is no plan.

Likely their solution it to drag you along the process knowing that the CRA will come along and lower the boom and then suggest to you that your only option is to conveniently have them file bankruptcy for you.

Don’t ask the CRA if you should go bankrupt.  You might not like the answer.

If you owe money to the CRA and you’re not sure if the debt is a tax matter which can be resolved, or if bankruptcy or a proposal are better options, just ask!  Send an email to info@intaxicating.ca and let’s talk!  We’re here for you.

Insolvent or Tax Troubles?  Don’t Let the CRA Decide!

In my experiences which includes almost 11-years working in the Canada Revenue Agency (CRA), you should never allow the CRA to decide whether you can fix your tax problems or whether you should go bankrupt.

From the stand-point of a CRA Collections officer, going bankrupt is great because it removes the account from their inventory of accounts to collect / resolve.

Your file disappears from their inventory and re-appears in the CRA’s Insolvency Unit inventory.

From the perspective of the Collections Department, it’s case closed!

There are 3 ways a CRA Collections Office resolves one of their accounts;

1) Collect it / fix the compliance issue(s)

2) Write it off because they cannot collect it

3) Move the account to the Insolvency unit

Go Bankrupt!

The CRA’s Collections Officers are not allowed to tell you to go bankrupt. In fact, they…

View original post 530 more words

Your Questions Answered About The CRA’s Informant Leads (Snitch) Line

The Canada Revenue Agency (CRA) has employed the Informant Leads Line, or “Snitch Line” for a very long time, and with incredible results.Snitch line

The snitch line has been so successful that the CRA (Canada Revenue Agency) have constantly reduced their investigations workforce because they get more detailed information through tipsters than they would if they had employees trying to locate this information on their own.

Who uses this line?

The majority of calls to the Snitch line still come from ex-wives (and some ex-husbands), former business partners and neighbours who have been confided in and either felt compelled to notify the government of the fraud being committed or who were hurt, harmed or cheated by the person who has been committing the fraud.

The line is used to ”get even”, or have someone “pay their fair share”.

How private is the line?

It is important to know should you decide to call the Canada Revenue Agency’s Informant Leads Line that the CRA takes your privacy VERY seriously and they will never notify the person(s) / organization(s) that you call on that it was you who called their line.

The CRA will cite their “Privacy Notice”, meaning that they regularly collect personal information under the authority of the Income Tax Act (ITA) and the Excise Tax Act (ETA) and they will use that information as the justification for following up on information provided by callers to the Informant Leads Line to determine if there is an element of non-compliance with tax legislation, and if applicable provided to the corresponding compliance program for appropriate enforcement action.

Does this just go to the CRA?

Information provided on this line may also be referred to the Canada Border Service Agency (CBSA) or Human Resources and Skills Development Canada (HRSDC), in the event that the lead relates to one of the programs they administer.

Does it impact me?

The information provided is voluntary and will not affect any dealings you may have with the Government of Canada / Revenue Canada.

 

Here are some answers to the most common questions asked of me, relating to the Canada Revenue Agency’s (CRA) Informant Leads / Snitch Line, starting with:

1) When should I call the CRA’s Informant Leads Line:

When there is “Tax Evasion”, which is an illegal practice where a person or business avoids paying taxes or reduces their taxes by misrepresenting their activities.

2) How can I report tax evasion?

Over the Internet (I have linked the CRA page and provided it here in case you’re nervous about clicking the link)

Link: http://www.cra-arc.gc.ca/gncy/nvstgtns/lds/menu-eng.html#ntrnt

By phone, mail or fax

Phone: 1-866-809-6841 (toll free)

Fax: 1-888-724-4829 (toll free)

Office hours: 8:15 am. to 5:45 pm. (Eastern Time).

Mailing address:

National Leads Centre
Business Intelligence & Quality Assurance Division
Canada Revenue Agency
200 Town Centre Court Scarborough ON M1P 4Y3

3) Some examples of tax evasion are:

  • Not reporting all income
  • Claiming deductions for expenses that were not incurred or are not legally deductible
  • Claiming false GST/HST tax credits
  • Failing to remit source deductions
  • Providing false information on marital status or children to obtain benefits and credits

4) What happens to the information provided to the CRA?

The CRA diarizes everything and determines if they need to take immediate enforcement action or if they need additional information before moving forward. Either way, you will never be notified as to whether or whether not the CRA took action as they are prohibited from doing so under section 241 of the ITA and section 295 of the ETA.

5) Does the CRA pay for the information I provide?

No. The CRA does not pay for information received from informants who call the Snitch line.

The CRA does now have the Offshore Tax Informant Program (OTIP) which offers financial awards to individuals with information about major cases of international tax non-compliance resulting in more than $100,000 of additional federal tax being assessed and collected.

For more information, please visit the OTIP website, including how to make a submission.

6) What do I get for reporting tax fraud?

Well, besides feeling great, you are helping to ensure that all Canadian taxpayers are paying their fair share of taxes and this benefits all Canadians. The CRA will tell you that if everyone pays what they owe taxes might go down… I’m not holding my breath, but you never know.

7) Will the CRA ever reveal who provided the information to them?

Never!  However, you can provide them with consent to release your identity, should you want that person(s) / organization(s) to know. The CRA has a legal obligation not to disclose the identity of informants, any information that might disclose an informant’s identity or even information that might reveal the existence of an informant is removed, even in the case where an Access to Information request is made.

8) How can you send information by email?

You can submit general informant information to the CRA using their secure Internet portal. If you want to provide supporting documentation you are best to mail or fax it.

9) Does the CRA really look at EVERY lead, and take them seriously?

YES.

10) If I submit a lead, then want to revoke it, is there a way to do that?

NO.

11) What stops someone from phoning in a fake lead?

Well, before the CRA is able to take any action, they require more information that just “My ex has a job working for cash.” The CRA would need some or all of the information listed below to help them prioritize the severity of the tax evasion and let them know if they need to get more information or if they can get working on it right away.

Helpful information includes:

  • Names and contact information for the person(s) / organization(s) you suspect
  • Address of business / Taxpayer, phone numbers, email, etc.
  • Social insurance number (SIN) / business number (BN)
  • Date of birth
  • Spouse’s name
  • Business name – the registered name and / or the operating as name
  • Names of shareholders if a corporation is involved
  • Any related companies
  • Type of fraud you suspect:

     

    • Income tax (personal – T1 or corporate – T2)
    • Provincial tax (PST)
    • GST/HST
    • Non-filing
    • Fraudulent refunds
    • Canada Child Tax Benefit (CCTB)
    • Universal Child Care Benefit (UCCB)
  • Details of your observations
  • Documents: have you seen these documents? Do you know where they’re kept?
  • Does the person deal in cash only? Do you know what they do with the cash?
  • Net worth information, such as assets, including those outside Canada (cash, name and address of banks, house, land, cottage, vehicles, boats, etc.)
  • Liabilities (loans, mortgages, credit cards, etc.)
  • Personal expenditures (food, housing, trips, restaurants, hobbies, etc.)
  • Your name and phone number (this is optional)

The CRA will ask you if they can contact you if they require more information. That is up to you.

If at any point, the CRA determines this information is incorrect, fabricated or provided to them for the purposes of committing fraud, not only will they indicate the details on your permanent diary record, but they will also take actions against you.

Once you have submitted a lead to the CRA, it’s good to have an understanding of the fines and/or penalties which can be levied upon the individual / organization, as they can be as high as 200% of the taxes which were attempted to have been evaded.

In addition, the CRA publishes the results of its prosecution activities on its Convictions Web page.

Concerned that someone will call the CRA on you?

If you have found yourself to be in violation of any of these requirements and are worried that the CRA will find out, or that someone will call the snitch line on you, you should contact us at inTAXicating, and we can begin to discuss the steps to help you which may or may not include the CRA’s Voluntary Disclosure Program.

info@intaxicating.ca

http://www.intaxicating.ca

Remember:

It is ALWAYS better to get to the CRA before they get to you!

Why Getting the Largest Tax Refund Possible from the CRA is NOT a Good Idea

After spending close to 11-years working in the Canada Revenue Agency (CRA), I have a very good idea what gets people into tax trouble.

Okay, I know exactly what gets people into tax trouble, and while it’s nearly impossible to list them all, I can tell you that there are ways to get out of tax trouble which many have never considered.

I also know that getting a refund back from the CRA isn’t always a good idea.  More on that later.

I can honestly say, without any prejudice that the main problem has to do with firms advertising at tax time about getting the most money in the fastest way possible.  These ads are aimed at people who equate getting their money back fast through the quick, cheap filing of tax returns.

The ads go something like this;

“Get the Largest Tax Refund Possible”.

“Get the Most Back.”

“Get the Most You Are Entitled To.”

“Get your Money Back Now!”

Just hearing those advertising slogans scare me, and it should scare you too.

Getting money back from the government at tax time, does not mean what you might think it does.

You are not getting money from the government because you fell into a threshold, but what you are doing is getting your money back from the government.

Your money that you overpaid (or were over-deducted at source) which the government kept during the year – held interest-free in fact – which you are asking for back.

Amazing.

It’s akin to lending someone money for a year – they use it, or invest it and make money off of it – and then a year later you ask for it back and you get it, while they made money off of it.

So how does this tied into tax debt?

History has shown me that people do not wake up in the morning and decide that they want to start carrying a balance owing to the Canada Revenue Agency.  Nobody wants to worry when they go to use their debit card that there might not be funds there as a result of a CRA bank garnishment, or when they go to sell their home find out that there is a lien on it.

Tax problem occur over time and as the time passes and interest accumulates, people find their ability to deal with it declines and before you know it, the amount owing is massive and the CRA is breathing down your neck.

So imagine if after rushing to have your tax return completed – so you can get back a couple of hundred dollars – you find out that you owed money instead.  Now you have a tax problem.  A tax problem that you have not budgeted for.  Now in collections, you have time find a way to pay off this amount owing, and fast, before the CRA takes legal actions.  You can ask friends and family for money, or consider a second job to pay that off.  It can be done, it can take time, or it can snowball and you become a chronic tax debtor in the eyes of the CRA.

Now the fun starts.  Visits to your house, your employer and notices to your bank or clients all run the risk of causing you long-term embarrassment.

If only there was a solution available to help out the repayment.

Well, there is.

This scenario could be completely different if you have taken the time to speak with an accountant, or a reputable tax firm and knew in advance that you might owe and together you had the opportunity to determine the best way to handle this impeding debt by placing money into your RRSP, or applying for, and claiming deductions to reduce your amount of taxes owing at year-end.  With a good accountant, your tax planning is not just for the current year, but also for future years.  

Wouldn’t that make more sense?

One of the first questions I ask a prospective client, or anyone who comes to me for tax advice, is who completed your tax return and what are their credentials.  It’s important because I have taken tax returns which owed the CRA $3000, $4000 or $5000 each year and turned them in to $4000 and $5000 credit returns just by claiming deductions and tax credits available to those taxpayers which their tax preparation service either didn’t know about or didn’t care about.  You only get so much service for $50.

There is nothing illegal in doing that, and provided that there is legitimate supporting documentation, the CRA wouldn’t reject the claim.

So instead of rushing to have your return completed for $40 or $50, think about spending the extra money this year and take advantage of an accounting firm which will sit with you, determine how to minimize your tax expenditures for this year and for future years.

Pay what you owe and not a cent more, and if you’re getting money back every year find out why.  Learn which deductions you may be eligible for and start keeping your receipts.

Take control of your year-end tax filing and stop sending the CRA penalty and interest revenue.

If you already have a tax problem, you need to have tax experts review your prior year tax returns to look for missed deductions and credits.  With a simple amending of the return, your balance could be reduced or wiped out completely.  This really is the best way to start resolving your tax problem.

It’s what I do.  For you.

It’s worth the money!

If you are looking for an alternative, some assistance, or have tax questions, contact us at info@intaxicating.ca and let’s get the ball rolling.