I am Writing a Book to Help Canadians Deal With Tax Problems. Preview Inside.

I have always wanted to write a book to help Canadians deal with tax problems, or tax debts with the Canada Revenue Agency (CRA).

There is no better time than the present, so here is a preview;

Chapter 1.

Call me!

Chapter 2.

If you have a tax debt, tax problem, are behind on filing, made errors on your return, missed deductions or slips or if you owe money and cannot pay. You need a straight shooter who can tell you what to do and do so without costing you an arm and a leg.

Welcome to my company.

It is my goal to help each and every Canadian who has a tax problem through either a free 15-minute consultation, a one-hour meeting or through engaging my services.

I’m going to tell you what you need to know and not what you need to hear. If you are exposed to the CRA, I will tell you. If you are not legally required to pay a debt, I will tell you that too.

What I won’t do is mislead you into thinking that the CRA spends all day searching your keywords looking for you, unless you have done something criminally wrong, then I am recommending you speak with one of Canada’s top tax lawyers who will treat you in the same no-nonsense manner.

I also won’t lead you to believe that I have an army of former CRA staff at my disposal or that the CRA likes being referred to as the “taxman”. They do not.  My network of CRA tax experts is vast and reside all over Canada.  I have friends still working in the CRA and many who have left.  I firmly believe that knowing what questions to ask is much more valuable than the answers given.  I know what questions to ask, and I will ask them for you.

I do, however, have 10-years of experience at the Canada Revenue Agency – as a collector – and as a resource officer, field officer, team leader, and I have significant experience in fairness / taxpayer relief, managing the Director’s Liability and s.160 inventory, and for 5-years, I trained the collections staff at Canada’s largest Tax Services Office how to do their jobs.  I cannot and will not list all the areas of the CRA that I worked in, because I wanted to learn, experience and help taxpayers while working there and I still want to do the same now that I am on the other side of the negotiating table.

Common sense tells me that if you have a tax, collections, or enforcement problem, you do not need a trustee, or a tax lawyer, or an accountant, but you need a former CRA collections expert to steer you clear of trouble.

Don’t let the CRA or other “tax” firms decide that you need to go bankrupt. You decide!

If you need forms filed with the CRA, or tax returns prepared for individuals or businesses, I work with the best accountants and accounting firms who share my philosophy of putting you first.  Together we make sure your past filings are accurate and that you have claimed the correct amounts legally allowed.  We don’t add things or make up deductions because that is what gets you in trouble.

My firm is Toronto-based, however accessible throughout Canada and around the world – as my clients have found out.

I’m not going to pull out a horse and pony show and try to entice you with fancy expensive ads which I will need to charge you extra to pay for – but I’m going to listen, process, and advise you what to do based on my experiences and based on 17-years of handling matters with the CRA, IRS, Revenu Quebec and with WSIB and the CRTC.  I spent the majority of my time at the CRA working on the corporate side, so GST/HST, payroll, corporate tax and personal taxes are all in my areas of expertise.

I will tell you what the CRA is doing, and what they will be doing next. It’s nice to be a step ahead!

And throughout this whole process, you have to understand that the CRA will be working with us to resolve your tax matter and not working against us. It’s what they get paid to do. The only difference is they do it with us and not against us.

Conclusion:

So, why reach out to me? Why not!

I can be reached at info@intaxicating.ca, or by phone at 416.833.1581.

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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.

 

inTAXicating: Nominated for the 2013 Canadian Blog Awards

I just learned that inTAXicating has been nominated for the 2013 Canadian Blog Awards – under the law category.Canadian Blog Awards badge

If you would to see the other blogs nominated in the other categories or if you would like to vote for inTAXicating, you can follow the link here; http://cdnba.wordpress.com/

Voting ends February 22nd, 2014.

The Canadian Blog Awards are a great way to recognize Canadian blogging talent. By taking the time to read other Canadian blogs and through your voting you are supporting Canadian writers.

I checked out many of the other nominated blogs and voted in each and every category as a way to give back.

Thank you in advance and please keep reading, commenting and asking questions!  Also don’t forget to visit my webpage at http://www.intaxicating.ca for help with all your tax concerns.

Happy 2014! Here are 14 things you can do right now to reduce your tax burden, or increase tax credits, on your 2013 taxes.

Happy New Year!  May 2014 bring you wealth, happiness, prosperity and great health.  May it also bring you debt-free (should you need to be) and also allow you to be one step ahead of the taxing authorities.

With the changing of the calendar, many are already working on their new years’ resolutions, but you should also review the list below to see if there are any actions you can do now to reduce your 2013 taxes owing or to increase the amount of refund you will get this year, or in future years.  It’s never the wrong time to thing about tax savings – we do it all the time here at Intaxicating, and want to pass along some tips for you.

Here are 14 easy strategies you can still take advantage of which impact your 2013 taxation year;

 

1.  Make your installment payments as required, or if you have fallen behind, catch up with one lump sum payment right away.

The Canada Revenue Agency (CRA) charges interest on missed installment payments, but if you catch up in one fell swoop, then they begin to reduce the amount of interest they charge you.  Ssshhh.  It’s a secret.

 

2.  Make sure you file on time and pay in full while doing so.

So how does this impact the 2013 taxation year, you might be asking and why is it so high up the list?  It is because many Canadians are shocked with the amount of money they owe at year-end and it’s the worst time of the year to discuss ways to reduce taxes with your accountant or tax preparer because they are so unbelievably overwhelmed they cannot spare 2 minutes to talk to you, let alone review your return for possible deductions you failed to mention to them. You are not the accountant!  Nor the tax professional.  So take time now to speak to someone who knows about what you do for a living and see if there are areas where you may be entitled to a deduction or credit and then go get that supporting documentation.  Also use the time to run your year-end situation through a free tax program to see how much you owe and what it will take to reduce that, or make it go away completely.

If, however, you are stuck owing a balance to the CRA or MRQ, make sure to set aside the funds to pay it in full with the filing of your tax return.  Heck, you could even send in the money now if you have it, but do not wait until even a day later than the deadline or interest starts accumulating.  The CRA charges 10% interest compounding daily, so it can add up rather quickly.

 

3.  Contribute to your Registered Retirement Savings Plan (RRSP).  

The deadline to contribute to your RRSP for 2013 is March 3rd, 2014.  If you need to know how much you are eligible to contribute to your RRSP. check your 2012 CRA Notice of Assessment.  Or, check online using the CRA’s “My Account” service.  Your contribution limit for 2013 is going to be 18% of your 2012 earned income (to a maximum of $23,820) less your 2012 pension adjustment, if any, plus any RRSP room carried forward from prior years.

 

4.  Contribute to a Registered Education Savings Plan (RESP).  

The Canada Education Savings Grant (CESG) program was initiated by the federal government to assist families saving for their children’s post-secondary education.  As an added bonus, the government tops up your annual contribution by 20%, up to a maximum of $500 ($2,500 contributions x 20%) per beneficiary per calendar year, to a lifetime maximum of $7,200. 

 

5. If you turned 71-years-old, you must collapse your RRSP.

If you turned 71-years-old by December 31, 2013, you must collapse your RRSP by the end of the year. At that time, you have 3 choices to make; either pay tax on the fair market value of the plan’s assets, transfer your RRSP into a Registered Retirement Fund Income Fund (RRIF), or purchase an annuity with the proceeds.  No tax is paid at the time of the purchase of the annuity or at the time of conversion into a RRIF.  You may still be able to contribute to your spouse’s RRSP under certain conditions.

 

6.  Make your Home Buyers’ Plan repayment before it is included in your income for the year.

The Home Buyers’ Plan (HBP) is a program that allows you to withdraw funds from your registered retirement savings plan (RRSP) to buy or build a qualifying home for yourself or for a related person with a disability. You can withdraw up to $25,000 in a calendar year.   

Generally, you have to repay all withdrawals to your RRSPs within a period of no more than 15 years. You will have to repay an amount to your RRSPs each year until your HBP balance is zero. If you do not repay the amount to your RRSP, for 2012, it will have to be included in your income for that year.  The deadline is

March 3rd, 2014.

 

7.  Pay the interest on low-interest loans related to income-splitting.

If you have entered into an income-splitting arrangement with family members and have loaned funds to either a spouse or a child at the interest rate set (quarterly) by the CRA, make sure that the interest on these loans are paid before January 30, 2014, or the loans will be subject to the attribution rules which taxes the income earned by your spouse or child in your hands.

 

8.  Pay the interest on an employer-loan to avoid it becoming a taxable benefit.

If in 2012, you received a low-interest loan from your employer you will want to ensure that interest is paid on that loan before January 30, 2014 in order to avoid a deemed taxable employment benefit. This benefit will be calculated at the CRA’s prescribed rate for the period that the loan was outstanding (which increased from 1% to 2%, effective October 1, 2013) less any interest actually paid.  This is not to be confused with a loan taken out as a result of shares owned.

 

9.  Reduce your business income by paying your family members who work for you.

As a business owner, it is beneficial to pay your family members a wage consistent with a wage you would pay to a complete stranger in order to reducing the amount of income in your business.  Also ensure that you are remitting to the CRA the CPP, EI and tax amounts on these payments.  You will need to issue them a T4, and file a T4 summary with the CRA by February 28th, 2014.

 

10.  File any T4’s and the T4 summary before the CRA deadline of February 28th, 2014 in order to avoid any penalties and interest.

If you are short on remitting for any employees, take advantage of the January 15th remittance – the last one for 2013 – and also consider the Payment on Filing (POF) option to top up amounts with the filing of the T4 summary.  Keep in mind, if you use the POF option to catch up on a considerable amount of funds, the CRA will still charge you maximum penalties.  

 

11.  Pay back any personal operating costs on employer-provided cars.  

If your employer provides you with a company car, you already know that it is a taxable benefit and it will be included on your T4.  Did you know that the actual benefit is made up of two parts; The first part is a standby charge based on a percentage of the original cost or the monthly lease payments for the car, and the second part applies if your employer pays the automobile’s operating expenses.  In 2013, this benefit is equal to 27¢ per personal kilometre driven.  The standby charge and the operating benefit are reduced by the amounts you pay to your employer.  For a standby charge reduction, your payment must have been made during 2013.  For an operating benefit reduction, your payment must be made by February 14, 2014.

 

12.  Has the tax burden from previous years got you considering bankruptcy?  

You are not alone!  In Canada 55% of bankruptcies are CRA related.  Before you speak with a trustee, speak with your trusted tax professionals at Intaxicating Tax Services, who can tell you whether or not the debt is fully collectible, and if there are other options available to you which will not ruin your credit for 7 years.  Even if the CRA is breathing down your neck, they are not allowed to tell you to file for bankruptcy and they like to think they understand when someone is insolvent, but we have the expertise, and the network to help you out of debt or, if you decide to proceed with a bankruptcy, or proposal, get you the best deal possible. 

 

13.  Google your tax problem!

You might have heard that it can be dangerous to Google  that you have a tax problem, however nothing can be further from the truth.  The CRA has all their tax information online and there are a plethora of tax-related resources available to help you determine if you should go it alone or if additional help is needed.  Make sure when you are doing your research that the information you are reading matches with the CRA website, does not sound too good to be true or is written in such a way to scare you into thinking you need to pay for a service you may not.  Most reputable firms will offer a free consultation, or a nominal fee for an hour meeting followed up with a written report to help you decide what to do.  Don’t rush into something until you have all the facts.

 

14.  Don’t be afraid to ask for help!

Speak with your accountant / tax professional about any deductions that you may be entitled to such as the public transit tax credit or for working at home.  If your accountant has not already asked you about what you do in detail then it’s up to you to determine if you need to brush up on the tax act yourself, or find a new tax team to help you pay the least amount of tax possible, like the tax professionals at Intaxicating Tax Services.  If, on the other hand, you are having issues with collections, then we are the only place to go based on our hands-on experience on both sides of the negotiating table.

 

Happy 2014.

 

We are:

InTAXicating Tax Services

@intaxicating

info@intaxicating.ca

416.833.1581.

http://www.facebook.com/intaxicating

Intaxicating and the 2012 Canadian Weblog Awards

My blog, Intaxicating has been nominated for the 2012 Ninjamatics Canadian Weblog Awards.  What a great way to end up 2012.

I have always felt that as Canadians we need to speak up more and promote our own blogging talents.  We live in the best country in the world and as Canadians we pride ourselves on being a little on the shy side, a lot on the polite side and not as “in your face” as some other countries in the world, which makes the kind folks at Ninjamatics so awesome for doing all of us Canadian bloggers a favour by creating and hosting these awards.

It is an honour to be nominated.  I went through the categories and there are some incredibly talented bloggers writing on the web who deserve much more attention than they have received to date.

Intaxicating has been nominated in two categories;

Business & Career; and

Topical

2010 Canadian Weblog Awards

The Ninjamatics’ 2012 Canadian Weblog Awards are a juried competition which means — no voting – so I don’t have to ask (or beg) people to vote for me.  Yay.

The nominees shortlist will be announced on January 15, 2013, and the winners will be announced on January 31, 2013.

A running blogroll of the nominees is kept on the Ninjamatics website throughout the year so that they can continue to highlight Canada’s blogging talent.

Intaxicating is the tax blog for Intaxicating Tax Services, a firm specializing in assisting people and corporations who have tax problems with the Canada Revenue Agency (CRA), the IRS, the MRQ or with WSIB.  With 17-years taxation experience, 11 years with the CRA, there is no better firm to represent you than the one who taught CRA collectors how to collect.

2012 Canadian Weblog Awards nominee