Happy Canada Day! Don’t Forget About Taxation!

Happy Canada Day, Canada.  You don’t look a day over 150-years-old!

Happy 150th Birthday Canada!

There are so many things to be thankful of this Canada Day, beginning with Tim Horton’s and hockey and ending with socialized medicine and peace.  But in between there is a whole lot of taxation.  Taxes you pay which go to build new arenas, which pay for medicine, which support the troops who keep us safe, and fund programs which integrates youth of all backgrounds, races, religions and income levels together in order to keep violence as low as possible.

These are the taxes we cannot avoid paying – unless we stop spending – and they are the consumption taxes (GST/HST), gas tax, liquor tax, and many more, and there are taxes on wealth, like personal income tax, as well as Corporate taxes.  There are also payroll taxes and any other fee, levy or revenue tool (all taxes but given a different name).

For the most part, these taxes are unavoidable, and as Canadians we pay them knowing that money goes back into the economy and helps people.

What I do not understand, however, is why people pay more taxes than they are required to pay, or can afford to pay, and these taxes are viewed by people in the Canada Revenue Agency (CRA) as a “stupid” or “lazy” tax and what they are referring to are penalties and interest.

It is my belief that no one should pay any penalties or interest.  Ever.  Why give the CRA more money than they are seeking through the Income Tax Act or the Excise Tax Act.

If you work with an accountant or tax preparer, there should be no reason for late filings or late remittances, or for missing out on key deductions because that representative should know you, and the industry you work in, and be able to keep you current and free of penalties and interest.

But there are many legitimate reasons why people file late, and incur penalties and watch interest accrue on their tax accounts, and these people are then hammered by the CRA and need help, which is why I created inTAXicating.  My goal here is to help you get out of the troubles that you have gotten into and by help, I mean rehabilitate you and get you current on your filings, help you reduce your balance owing, apply for taxpayer relief (fairness) if it applies to you, and get you on a remitting and reporting schedule which ensures you are never late again.

Too many firms out there have watered down the “Tax Solution” process to the point where you pay them a ton of money, they “fix” your issue and then another one pops up, all because they are experts in taking money and not experts in resolving CRA debt issues.

The best part about working with inTAXicating is having the expertise where you need it.  If your problem is with collections or enforcement then you need the person who worked in that area, and trained and managed the collectors and who can tell you the CRA’s next move before they can.

Being audited?  Recently assessed?  Don’t understand a letter?  Balance looks too high?

There is no tax situation too scary, or too difficult to figure out.  Business taxes, personal taxes, GST/HST, payroll, T2’s, provincial, federal, liens, RTP’s, appeals, VDP… We’ve seen it all, handled it all, and have been successful with it all.

Just because it’s July 1st and summertime doesn’t mean the CRA stops working too.  In fact, it’s the opposite.  With more time on their hands, the CRA’s collections staff have the time to thoroughly research tax files which have balances on them to see what they can do to ge the account paid in full.

My experience working in the CRA for almost 11-years, tells me that the majority of in depth investigations occurs during the summer months.

Make summertime the best time to resolve that nagging tax problem.

If you have a tax problem, we have a tax solution.

You can also find us on twitter @inTAXicating or on Facebook @inTAXicating

Or email us: info@intaxicating.ca

 

What are you waiting for?

CRA Helping Small and Medium Sized Canadian Businesses

On June 27th, 2017 The Government of Canada announced that they are committed to ensuring tax fairness for all Canadians, as they recognize the importance of small and medium businesses in creating jobs and growing the economy.

As a result, they made a commitment to overhaul its service model so that people who interact with the Canada Revenue Agency (CRA) feel like valued clients, not just taxpayers.

Today, the Honourable Diane Lebouthillier, Minister of National Revenue, unveiled the CRA’s actions for the next two years to make its services for small and medium businesses more helpful and easier to use.

The Report on the Canada Revenue Agency’s 2016 Serving You Better consultations with small and medium businesses contained concrete commitments based on feedback shared by small and medium businesses and chartered professional accountants in the fall of 2016.

The CRA’s 2017-2019 Serving You Better action plan contains over 50 action items that will improve services for small and medium businesses.

Top 10

Here are the top ten service improvements for businesses, which will allow them to:

  1. Receive a CRA security code by email rather than mail
  2. Call a new dedicated telephone service for tax preparers that helps with more complex technical issues
  3. Request a Liaison Officer visit
  4. Provide T4 information slips to their employees in electronic format
  5. Use T2 Auto-fill through commercial software
  6. Create their own filing and balance confirmation letters online
  7. Create short “how-to” videos that explain the services on My Business Account
  8. Experience telephone service improvements
  9. Share feedback about their audit experience in a new post-audit survey
  10. Help Canadians have their objections resolved faster

To find out more about the CRA’s action plans to serve small and medium businesses, go to canada.ca/cra-serving-you-better.

Quick Facts

During the 2016 Serving You Better Consultations, the CRA and their senior officials met with over 300 participants face-to-face to discuss what the CRA could do better.  Approximately 135 of these participants sent their views online or in writing.   All in all, the CRA received over 1,500 comments and suggestions for improvements to their services.

Who was consulted?

The CRA partnered with the Canadian Chamber of Commerce and the Chartered Professional Accountants of Canada to host a total of 21 sessions with small and medium business and accountants in cities across Canada.

Back from vacation and catching up! How we can help – details included.

Just wanted to drop a quick note to all of you who called, emailed and hit me up on the blog or on social media that we’re back to work and trying to get to everyone as soon as possible.

If anyone has an urgent matter, please send an email to info@intaxicating.ca, in the subject line, please write “urgent” and that will be the top priority.

For new readers of this blog or who are seeing this blog through our website, here is what you need to know!

inTAXicating is a Canadian tax consulting business which provides solutions to Canadian Tax problems predominantly related to the Canada Revenue Agency (CRA), but not limited to the CRA.

With over 20-years experience in Canadian Tax (throw in some IRS tax, FATCA, Revenu Quebec, Cross-border matters and WSIB) combined with over 10-years working in the CRA in their collections division, you have the experience and expertise that no-one else can boast to have.

Our model is simple! Give you the truth based on the facts.

You get a free consultation and if it is determined that you can handle it best, or if your questions are quickly answered, then you are on your way.

If there are more complex matters which may eventually require greater expertise, then you have the option to handle you tax matters up to that point and then hand it over, or you may wish to hand it over right away…

It’s your taxes and you need to know what is being done and how to properly handle them going forward.

There are no magical cures for tax problems which took years and years to grow, so if anyone promises you a magic bullet, proceed with caution.

inTAXicating also believes that everyone who earns money needs to pay their taxes, however, they should pay what they owe, and in circumstances where there is no ability to pay, the government should understand that and give you a break.

No questions are bad questions.

I do not believe in the “natural person” being exempt from taxes because the CRA does not believe it, but I have spoken to many, many “de-taxers” and enjoy the conversations and helping them through the CRA’s prosecutions.

We specialize in all matters relating to CRA collections, specifically Directors Liability, Taxpayers Relief, s160 assessments, liens, and garnishments, RTP’s.

We provide audit representation, accounting (through a CA), as well as presenting the options to solve all tax matters including the ugliest and most complex tax matters. The messier the better!

In short, we want to help.

15 minute Consultation / responding to questions via email – free
Meeting – $250 plus HST (one hour meeting – detailed summary and recommended plan of action included)
Engagement – either hourly @ $250/hour or a fixed fee depending on the complexity and amount of work involved.
Accounting – best rates possible also related to the amount of work involved.

We try to stick to this model as best as humanly possible because it’s your money and you work hard for it, so you should not have to throw it away.

info@intaxicating.ca

Double Nomination for inTAXicating in 2014: Canadian Weblog Awards.

I understand that inTAXicating has been nominated twice in the 2014 Canadian Weblog Awards in the Business and Career category and for the Lifetime achievement award which means the blog has been around since 2009.

What I like about the Canadian Weblog Awards is that they are a juried competition (I was a juror 2-years ago) because they celebrate quality over popularity. It’s not traffic numbers that matter, but also great writing and great design.

The awards really do show off the best and brightest bloggers in Canada and it’s amazing how big these awards get year after year.  I feel like the award should be called the Schmutzie in honour of the creator and operator of these awards (and a pretty awesome blogger), Elan Morgan aka Schmutzie.

Best of luck to all nominees!

inTAXicating Is 6-Years-Old! Happy Anniversary. Let’s Share Links!

I received a surprising message from WordPress on Sunday, September 21st that this blog, inTAXicating,has celebrated it’s 6th anniversary!

Time flies!

Happy Anniversary inTAXicating.keep-calm-and-happy-6th-anniversary-1

That means it has been 6-years since I have been posting suggestions, tips, and recommendations surrounding the ins and outs of the Canada Revenue Agency (CRA), the IRS, Revenu Quebec and the WSIB.  I have written about these government organizations based on my practical work experience at the CRA and in private industry working closely with all of them.

I have posted some great stories and have so many more to come!

Compliance, Collections, Cross-Border issues, FATCA, Assessments, Liens, Director’s Liability, Audits, Negotiations, Accounting… I’ve done it all, and I’ve shared a lot of inside information that no one else hears about, or knows about.  Having all of this knowledge and wanting to share it is the driving reason behind maintaining this blog, and opening up a tax solutions business at www.intaxicating.ca.

I am also always looking for great Canadian tax content to read and discuss, so if you are a tax blogger, or if you have a different go-to site for Canadian tax information, please either post a comment on this post, or send me an email at info@intaxicating.ca and I will add the site to my blogroll.

The more Canadian tax information we can get together as a community, means we can help Canadian taxpayers that much better!

 

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.

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

CRA releases New Forms for Treaty-Reduced Rates of Canadian Withholding Tax

The Canada Revenue Agency (CRA) recently released final versions of new forms, NR301, NR302 and NR303 which is to be provided by recipients of payments from Canadian residents to certify eligibility for treaty-reduced rates of Canadian withholding tax.

These Forms are not to be provided to the CRA, but rather to the Canadian resident payer of the withholdable amount or to certain intermediaries along a chain of payments subject to withholding.

Until recently, the CRA generally accepted reliance on the payee’s address for determining whether to apply a treaty rate. By releasing these forms, it signals that the CRA is requiring a greater level of diligence on the part of payers of withholdable amounts to be as sure as possible that the correct reduced treaty rate is applied.

Although the use of the Forms is not mandatory, and they will not guarantee avoidance of penalties, interest, or liabilities for underwithheld tax, many taxpayers will likely apply a 25% withholding rate on payments of withholdable amounts to recipients who do not complete the Forms.

The CRA is looking at the payor, to review the information provided by a non-resident on these forms, or in another format, and to make sure they have enough information to support that the non-resident is eligible for tax convention/treaty benefits on the income being paid.

In cases of inconstencies, the CRA is looking for intermediaries, prior to establishing a withholding tax rate, to question the information given and look at other information received from the non-resident, or known about the non-resident, if the payer knows or has reasonable cause to believe that the information on the form:
• is not correct or is misleading;
• contradicts information in the payer’s files; or
• is given without knowledge or consideration of the facts of a situation.

Forms are valid for the earlier of 2 years, or a change in the eligibility for convention benefits.

* Completing Form 301 is not mandatory. However, if a non-resident refuses to provide certification of beneficial ownership, residency, or eligibility for treaty benefits on request by a payer, the full statutory rate should be withheld.

One question that came up after the release of these forms was that they do not address holding global securities through CDS or DTC.

For some direction, you need to check the update to IC76-12, “Applicable Rate of Part XIII Tax on Amounts Paid or Credited to Persons in Countries with Which Canada Has a Tax Convention” related to Forms NR301, NR302, and NR303.

In this update, the CRA states that payments made to CDS on securities registered in the name of Cede & Co. (the nominee name for DTC) are made without tax. Tax will be withheld by CDS based on information received from DTC and collected by DTC’s participants.

I recommend you read the news release below to familiarize yourself with these forms.

The link to the release follows; http://www.cra-arc.gc.ca/formspubs/frms/nr301-2-3-eng.html

Here are the forms;

Form NR301, Declaration of eligibility for benefits under a tax treaty for a non-resident taxpayer; http://www.cra-arc.gc.ca/E/pbg/tf/nr301/nr301-10e.pdf

Form NR302, Declaration of eligibility for benefits under a tax treaty for a partnership with non-resident partners; http://www.cra-arc.gc.ca/E/pbg/tf/nr302/nr302-10e.pdf

Form NR303, Declaration of eligibility for benefits under a tax treaty for a hybrid entity; http://www.cra-arc.gc.ca/E/pbg/tf/nr303/nr303-10e.pdf

Random tax stuff – withholding

A dividend payment from Canadian source dividends is subject to Canadian non-resident tax at a rate of 15%.

If the corporation is registered on the United States stock exchange, then it becomes IRS eligible, making the dividend payment subject to back-up withholding at the rate of 28%,

The 28% back-up withholding amount is reduced to 15% – the negotiated US – Canada treaty rate provided the holder submits a valid IRS form W9.

Without a W9, the holder is subject to 43% withholding tax (28% + 15%)