IRS Targets Crypto-Currency Exchange Coinbase and Wins!

A Popular cryptocurrency exchange, Coinbase, has been forced by a US court order to hand over a list of 13,000 of it’s customers’ names and assorted personal information to the Internal Revenue Service (IRS) so that the IRS can determine who has been reporting their Crypto-Currency transactions and to tax and penalize those who have not.

The link to the original article is here;

Coinbase, a San Francisco-based cryptocurrency exchange notified thousands of customers, to provide the IRS with “taxpayer ID, name, birth date, address, and historical transaction records for certain higher-transacting customers during the 2013-2015 period.”

While 13,000 is a lot, if you have used Crypto-Currencies in the US, or in Canada, you might want to get filing, and fast.

Apparently, Coinbase received a summons from the IRS in late 2016 asking for a wide range of records relating to approximately 500,000 Coinbase customers.  Coinbase fought this summons in court – not sure if they won and the 13,000 is the win or if that matter is still pending but the 13,000 is a different attempt by the IRS to gather information they are entitled to under the IRC.

Still shocking to us at inTAXicating is how few Canadian and US crypto enthusiasts had even bothered to address the tax issue.

Many on both sides of the border claims that both the IRS and the CRA have been really vague on how they plan to address Crypto-Currencies, however than cannot be further from the truth.

On March 25th, 2014, the IRS issuesd this release;; and

On March 17, 2015, the CRA issued a release about how the Canada Revenue Agency will be handing Crypto-Currencies and they have been on top of it with the most recent detailed release being January 18th, 2018.

Whether you believe in taxation or that taxation is theft – something brought in from the BNA Act of 1867, or there are privacy rights stemming from the 3rd Amendment in the US, the bottom line is this.

If you don’t report your interactions with these digital currencies, you are going to pay that tax plus penalties and interest.  Why give the government more than they are asking for?  Include the currencies on your tax return, pay the tax, and be fully compliant.

If you have failed to include your adventures in Crypto-Currencies on your tax returns, you are in trouble.  You need to contact inTAXicating and we can assist you in filing your returns to reflect those amounts.

Remember, the CRA’s Voluntary Disclosure Program is changing as of March 1st, 2018.  Once that loophile closes, it’s going to be very difficult to get a fair shake from the government.

Don’t wait, hoping there is going to be miracle court order or that the CRA or IRS will decide that they have enough taxes already.


inTAXicating can be reached at to book an appointment.

Copy of Court Order;

Coinbase Compelled by IRS to Provide 13,000 Customers' Information
There’s plenty of misinformation regarding tax preparation and how to report digital currencies, however the CRA and IRS have been very clear.

If you have transacted publicly on any centralized exchanges such as Coinbase and are US or Canadian residents – and regardless of your opinion on the morality of tax – the IRS and the CRA have courts on their side and they can sentence you to jail.



How To Prevent Being Scammed By A Fake-CRA Call…

The best way to avoid being scammed by a fake CRA caller.

Hang up.

If they start raising their voice, threatening you, or tell you that you are going to be arrested, or that the government is going to seize your house, or car, and especially if they tell you that they are going to take away your children.

Just hang up.

If you receive an email from a scammer but it looks legitimate, check the return email address. Government email addresses end with “”, oh, and if claims to be from the Canada Revenue Agency (CRA), you should be aware that the CRA employees are they’re not supposed to and not allowed to email outside the office.

If you’re not sure, don’t buy into the threats, and certainly do not give them any information at all.

Hang up.

Get Ready to File your Personal Income Tax Return (T1). Make Sure You Have All Your Slips Accounted For!

Are you getting ready to file your Personal Tax (T1) Return here in Canada to the Canada Revenue Agency (CRA)?

Are you chomping at the bit to get your refund?

Before you push forward and get that return in, make sure to check that you have received all the tax slips you should be getting?

Then check again.

If you forget a tax slip – T3, T5, T4, T4A, etc – the CRA does not accept the argument that you just “forgot it”, but rather they believe that you have willingly omitted the slip in order to reduce the amount of income that you are reporting, so you end up paying less taxes.

The penalty for missing slips can be quite steep.

Forget to include slips year over year and the penalty increases.

At inTAXicating, we encourage our clients to keep track of slips expected and slips received through a spreadsheet based on the slips received in the previous year, and any transactions in the current year which will result in the generating of a tax slip.

In the inTAXicating Personal Tax Spreadsheet, we go further by identifying which member of the family the slip belongs to, when it was received the previous year and which institution produced the slip.

Remember that slips produced by institutions are also sent to the Canada Revenue Agency (CRA) so they know what you should be filing before you do unless you keep track.

Then take this list, and staple it to a box or file folder which is kept in the house / place of business for all potential tax-related materials for the year.  At tax time, it’s an easy checklist to make sure all is in order and that when filing, everything is included.

If, however, you have forgotten to include a slip, the Canada Revenue Agency (CRA) will eventually use their copy of the slip notify and re-assess you if you have not had the time to amend your return.

If you don’t get to the CRA first, the next thing you know, you likely will have a balance owing and along with the penalty for missing the slip, the debt is accruing interest.  It can easily escalate from there!

A little organization will reduce the amount of penalties and interest paid to the CRA.  As the Tax Manager for Computershare Trust Company of Canada / Computershare Investor Services, I was responsible for the preparation, filing and submission of tax slips to the millions of investors Computershare kept track of, so I understand more than anyone the importance of getting slips out to the holders on time, and accurately, and then to the government on time and without penalty.

So here is a copy of my list of slips, their mailing date from the provider.

RRSP – If you were one of the many who used the March 1st deadline to make your contribution for the previous year, then you would be receiving that slips beginning March 15th.  All other RRSP contributions which were made prior to the 60-day extended period saw their tax slips mailed beginning at the turn of the calendar.  They are T4RSP slips and RL2’s for residents of Quebec.

T5 / RL3 and NR4’s begin to get mailed around January 15th.

T4RIF / RL2 withdrawals from a RRIF, are mailed the 3rd week of February.

T5/RL3 for investment interest income coming from a mutual fund are mailed the 3rd week of February.

T3 / RL16 reporting dividend income from mutual funds are mailed by the 3rd week of February.

Receipt of contribution from an estate rolling over funds to a spouse produce a T4RSP / T4RIF / RL2 – issued for receipt of contributions from an estate rolling over funds to a spouse – sent  out the first week in February

T4A / RL1 are issued for RESP withdrawals and are produced and mailed the first week in February.

NR4’s showing income for non-residents of Canada are mailed the 3rd week in February.

If during the year you received Employment Insurance (EI), Old Age Security (OAS) or Canada Pension Plan (CPP) payments, you can follow this 3-step process from the government website to make sure everything is in order and get your tax slips online directly from Service Canada.

Happy filing.

inTAXicating Tax Services for all your tax needs and specializing in providing solutions to your tax problems.



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




When a Lien is Registered Against Your Property: What does that really mean to you?

English: Northwest corner of the Connaught Bui...
CRA HQ (Photo credit: Wikipedia)

I came across an interesting article this morning regarding liens, governments (municipal – property taxes, Federal – the Canada Revenue Agency), and the idea that people with unpaid taxes, or tax debts run the risk of losing their properties to the government.  The article can be read here, and the title of the article –

“More Hamiltonians losing properties due to unpaid taxes”

– scared the death out of me because I know the truth about liens, and right away I suspected something was out of sorts.

I continued to read the article which explained that due to a decline in manufacturing jobs, coupled with a prolonged economic downturn (recession) people are struggling to pay their bills, so the one bill they seem to be delaying payment on most often is their property taxes.  In fact, the article states that, “A record number of properties are being slapped with liens because Hamilton home and business owners can’t pay their taxes.  By the end of 2013, the city will have registered more than 500 properties after warning owners that time is up to pay their overdue taxes.”

That is a lot of back taxes, and you know that there will come a time when the city’s Director of Taxation will have to find some “incentive” to “encourage” people to pay their taxes and that could come in the form of making an example of someone very publicly in order to show the rest of the delinquent accounts what is going to happen to them… Soon… Maybe…

But is this article not the public shaming itself?

If you were unaware of the consequences of having outstanding property taxes, you would think that the government is going to slap on a lien, then come and take your house from you.  I thought maybe the residents of Hamilton were losing their properties to the government, that the government is seizing and selling them in order to recover the unpaid property taxes at a rate far greater than anywhere else in Canada, and that certainly is not the case if you read the entire article.

While the facts clearly point to an increase in properties registered with tax liens from 2008 when the recession began until 2012, one needs to wonder if it has to do with an increase in prpoerty taxes owing, or if maybe another factor falls into play – maybe employees are getting better with practice registering liens to secure the government’s interest.

Below are the number of registered liens in Hamilton per year:

2008: 323

2009: 354

2010: 368

2011: 377

2012: 400

2013 (projected): 500+

Interesting, however, the reality is that, “Few properties are actually sold in city tax sales. There were six in 2012 and three the year before.”

So what does this exercise actually mean to the government and to you, the taxpayer?

It points out that the government will register a lien on any property you own in order to secure their interest in a tax debt you have.  Municipalities do it, and the CRA does it.  To be honest, the CRA should be registering liens against any and all properties which have equity in them.

The lien sits on the property and the owner is not allowed to sell or re-finance the property until the lien is paid in full.  In fact, most financial institutions will only lend money in instances where there is a lien provided that the agreement entails payment in full of the lien and word from government that the lien is going to be removed upon receipt of the full payment.

So how does this explain the seizing and selling of 2 properties?


The CRA, for example, makes it a policy to never seize a property where doing so would result in them having to “live in the street”.  They will, however, never blink twice if the property they have registered a lien against is an income property, a cottage or in the case of a car, a second car.   Those are fair game.

Does that mean you can ignore the lien?

Heck no!

But you need to know if the government is actively searching for assets to seize and sell, or if they are securing their interests.  While they may not tell you, they will probably let your representative know – which is why prolonged tax issues regularly need a different voice to help the CRA understand that there is a person at the other end of the telephone and that nobody wants to be in a debt position they cannot get out of.

So before you ignore the debt, or the lien, you should understand that there is the possibility that the CRA could seize your asset in very short notice.

Don’t take a lien lightly.


Government Waste Awards give Lifetime Achievement to former Toronto Mayor David Miller

The 13th Annual “Teddy” Government Waste Awards Winners were announced by the Canadian Taxpayers Federation (CTF) last week.

The CTF is a citizen advocacy group dedicated to less waste, lower taxes and responsible government spending of our hard earned dollars.

These awards confirm what I had been saying all along, that a left-wing mayor in the City of Toronto was going to cause an increase in taxes and result in less money in the pockets of Torontonions, as David Miller was given the lifetime achievement award.

Please, read on.

The “Teddy” award is named after Ted Weatherill, a former federal bureaucrat who was fired for outrageous expenses in 1999 (I’ve included his expenses below). Each year the CTF holds the ceremony to recognize a government, public office holder, civil servant, department or agency that most exemplifies government waste.

The winners:

Federal Teddy Winner:
G8/G20 costs: $1.24 billion spent to host leaders from the other G8/G20 nations to ironically discuss how to trim government over-spending.

Provincial Teddy Winner:
Ontario tax collectors paid severance for keeping jobs: Approximately $56-million in severance for changing their business cards from ‘Ontario PST collector’ to ‘Federal HST’ collector.”
These guys moved across the street from 5150 Yonge Street to 5001 Yonge street and were topped up to make up for the fact that the Feds pay less than the province.

Municipal Teddy Winner:
Edmonton City Council for wasting $5,000.00 on a haiku contest. Citizens were asked to write poems (or haikus) about riding the bus, despite already having paid $5,000 to have one written.

Lifetime Achievement Teddy:
David Miller

“And the Lifetime Achievement Teddy goes to…former Toronto Mayor, David Miller, for a career of reckless taxing-and-spending. As Mayor, Miller grew the city’s operating budget by 44 per cent, $2.8 billion, increased the city’s debt by more than $1 billion and increased property taxes every year well beyond the rate of inflation. He fought for and got new taxing powers which he used to impose a host of new taxes, including a: plastic bag tax, garbage tax, car tax, billboard tax, and land transfer tax.”

Concluding the ceremony CTF federal director, Kevin Gaudet remarked, “over the years David Miller has provided so much material for the Teddies we will see if future municipal nominations will suffer with his departure.”

Other nominees included:
Federal – Space Agency/Agriculture Canada: $400,000 for failed “Canadian Content” astronaut food program.

Federal – Border Services Agency Employee: Bureaucrat spends five hours/day at work surfing porn and is not fired.

Federal – National Defence: $515,000 for not conducting security checks on NORAD facility builders.

Federal – Public Works: $550 million for maintenance including $1,000 for removing one light switch.

Federal – Senator Lavigne: $30,000 for expenses – while suspended from the Senate.

Provincial – ON E-Health: $224M for consultant abuse including charges to consult on consulting charges.

Provincial – ON Parks: $400K for Niagara Parks Exec expenses including roller coasters.

Provincial – NS Premier Dexter: $10,600 to expense full membership fees to the bar association, then reducing status to “not practicing” when forced to pay himself.

Provincial – MB Health: $38,000 to build “rooftop oasis” for health bureaucrats while patients down the road fundraise for theirs.

Municipal – Summerside, PEI: $1.3 million for fraudulent Michael Jackson tribute concert.

Municipal – Regina, SK: $5,000 for bizarre sponsorships including $450 for a ‘pickleball tournament.’

Municipal -Richmond, BC: $59 million for city purchase of land for five-times real value to be “as fair as possible.”

Municipal – Toronto, ON: Public transit boss caught expensing $2,400 for taxis.

Now, back to the name of these awards… The “Teddys”, named after Ted Weatherill who was the Chair of the Canada Labour Relations Board since 1989. Between 1995 and 1996, Mr. Weatherill charged at least $21000 to taxpayers for business travel he incurred as President of the National Academy of Arbitrators, an Alabama-based private organization.

“Mr. Weatherill concedes that he could have sent the expenses to the National Academy of Arbitrators…but Mr. Weatherill believed his participation in the NAA’s conferences that year to be a wise investment for the Canada Labour Relations Board. So, he chose to bill his expenses to the Canadian government instead.”
The Ottawa Citizen, 7 April 1997

There’s more than just travel, though. The following is a “taste” of the meals Mr. Weatherill has billed to the Canadian taxpayer over the past eight years:

Breakfast: Relais Christine, Paris $25.00
Meal (for 2): RPG Arpege, Paris $733.43
Dinner: Le Cercle Universitaire d’Ottawa $1 084.40
Room Service (one night): Chateau Frontenac, Québec City $95.27
Meal: Royal Windsor Hotel, Brussels $531.50
Mr. Weatherill billed the federal government on average $18,500 a year in meal costs alone, for a grand total of $148,000 over the first eight years of his ten year term. He has billed the federal government more that $200 for a meal on 107 different occasions since he was hired.

Many of Mr. Weatherill’s lunches have included alcoholic beverages. Treasury Board guidelines state that “reasonable expenses means the specific, itemized expenses incurred, based on receipts, excluding alcohol.”


Tax Treaty signed between Canada and the Republic of Namibia

The Department of Finance has announced that a tax treaty between Canada and the Republic of Namibia for the avoidance of double taxation and the prevention of fiscal evasion was signed on March 25, 2010, in Windhoek.

The treaty limits the rate of withholding tax to 5% for dividends between affiliated companies and 15% for dividends in all other cases, and 10% for interest and royalties.

The treaty will enter into force once both countries have taken the necessary ratification measures and have notified each other of such ratification.

The full text of the treaty can be found on the Department of finance website.

This treaty is NOT in full force yet.