Frequently Asked Tax Question Answered: How do I know if what I read about Tax Debt to the CRA is true?

This is one of the most commonly asked questions of me: How do I know if what I read on the Internet regarding debt to the Canada Revenue Agency (CRA) is true or not?

The answer is quite clear, however, complicated at the same time.

If you owe money to the CRA and you are looking for options, suggestions, or tips on the Internet, you have to pay special attention to the “Solution” options which are advertised as if they are providing legitimate advice.

The most important thing to do is to take note of the terminology used in these ads – over and over again – because the intention of these ads and blog posts are not to help you but to achieve a high SEO (search engine optimization) ranking.  These posts are written to capitalize on the number of eyes who will read that post because of the way it was written, not because it was intended to provide help to you.

Here is an example of a fear mongering ad, disguised as an article on taxes, meant to “help” you.  I am paraphrasing the content, but the example should provide a clear clue as to the true intention of the poster.

Title: Understanding Canada Revenue Agency (CRA) Tax Assessment & Arbitrary Assessments

The sample post: CRA tax assessment is when the Canada Revenue Agency conducts a review of your income taxes. The most common form of CRA tax assessment is the Notice of Assessment that is sent once the CRA has conducted a preliminary review of your tax return. There is another CRA assessment known as “arbitrary assessments.”   These assessments are also known as “notational assessments.” What this means is that, if you have not filed your taxes on time, the CRA could decide to complete and file your return for you.

Many people believe that, if you do not file your taxes, that the CRA will wait until you do file your taxes and then the CRA will penalize you by changing you penalties, fines, and interest.

This is not always true.

The CRA is able to choose to complete an arbitrary assessment in which the Canada Revenue Agency will estimate your income and the tax debt that you owe and then the CRA will charge interest on this debt as required.

The amount of tax debt that comes from a CRA arbitrary assessment will  not be as favourable to you as it would be if you completed your return yourself.

The CRA will use previous income tax statements to complete your return and will not take steps to include expenses or deductions or attempt to give you any tax breaks.

In many cases, the amount owing listed by the CRA will be very high and additional charges, penalties and interest will be charged since the assessment was late.

You will then be subject to CRA collection efforts such as a wage garnishment of up to 100% of your income, or the CRA will empty your bank account and then freeze it so you cannot use it.  They could also put a lien on your house and if you don’t pay them, sell it and keep the proceeds.

What do you do if you Receive a Notational Assessment?

If you receive an arbitrary CRA tax assessment, your options are;

  1. Pay the amount listed
  2. File an appeal of the assessment.
  3. You can also choose to file a return yourself at this point in an attempt to reduce your tax bill, but, this will trigger a CRA audit to ensure that your tax return is filed correctly.

In addition, if the CRA does not have the information it needs in order to complete an arbitrary assessment, it can take you to court where the court can order that you complete the return and pay a court fine.

If you ignore this court order, you could be subject to contempt of court charges and go to jail.

As you can see, your best option is to contact us, and we will help solve this problem.  We have an army of former CRA staff at our disposal who deal with hundreds of these daily.

Let us help keep you out of jail and away from the prying eyes of the CRA.

 

WHEW.

After reading this, if you were not afraid of the CRA, you must be by now.  This blog post started out trying to get people looking for CRA tax solutions and slowly wound its way through a series of lies and mis-truths and took the reader straight to audit and jail.  It just stopped short of proclaiming that King Tax Man was going to descend from the clouds and throw tennis sized hail-balls at you.

This type of article is not good.  It’s not accurate, heck, some of it is not even true.  But how would you know?

What are the red flags that you should notice?

Let’s break down this article and address some of the “facts”.

First paragraph – mentions of CRA, or Canada Revenue Agency – 5 times.  This is their SEO target, clearly.

I was also alarmed that the writer was unable (or unwilling) to state what a Notice of Assessment (NOA) is, and how the CRA actually issues them.  To set the record straight, a Notice of Assessment is the computer generated form which is issued once a change occurs on someone’s tax account.  This NOA carries with it a legal warning from which the CRA are able to take collections actions.

An additional lie occurred when the author stated that your tax return is looked over once it is filed.  In truth, no one has reviewed your tax return.  The data entry group take the paper-filed returns and just enter the information in the system.  Electronically filed tax returns are run through a program aimed at identifying any obvious errors or inaccurate deductions taken.

There is the idd case where the CRA will flag and wait for your tax return, however try not filing for 20-years and being under audit regularly, and then you can get to that level.

Canada’s tax system is a self-reporting system so the information is accepted as filed, and the Audit, or Verification department are responsible for checking the information to make sure it is correct after the fact.

Another HUGE issue, is that there is a significant difference between an arbitrary assessment and a notional assessment.

Arbitrary assessments are issued for personal (T1) taxes and occur when the CRA’s non-filer group, or a CRA collector takes information on your personal tax account for that current year, plus previous years and prepare the unfiled tax return for you, less deductions.

In many cases, they are pretty accurate.

A notional assessment is specific to GST/HST and in these cases the non-filer unit or the collections unit will assess an amount owing for each period outstanding based on a suggested amount the system provides.  That suggested amount is a combination of the previous filings, and the industry or SIC code that is associated to your file.

In both cases, returns can be filed and the assessments removed, however, Notices of Objection should be attached just to provide recourse should the filings not be accepted.

Filing the missing returns does not trigger an audit.

The whole piece about the CRA taking you to court, etc., makes absolutely no sense as it’s not even true.  Arbs and Notionals are based on information in the CRA’s systems.  If the CRA doesn’t have information, they can still raise an assessment.

I suspect the writer was just trying to close out the reasons for using them by tieing in the jail / court fine, for not complying.  It’s not true at all, but it makes for a compelling story!

If the intention of the article was to really assist Taxpayers and let each and every Canadian decide if they want to pay for assistance / expertise, then all they had to do was discuss prosecution which is what the CRA can and will do if repeated attempts to file have been issued from the CRA (Demand to File) and have not produced the returns.

Maybe they didn’t know that existed…

Maybe they were not aware that failing to file is a criminal offense, if the CRA asks for the returns and they are not provided.

Certainly, they did not want you to know that failing to pay is not.

If someone looked at the above post, they would panic, contact this firm, and likely be convinced to pay a lot of money for something they could likely do themselves because they don’t want to make it worse, or go to jail.

It’s hard to get the truth out there when there are people and firms distorting the facts in order to make a profit off of taxpayers lack of understanding of how the CRA works.

Additionally, if they intentionally muddled the facts in this post to scare you into using their services, what other information have they creatively adjusted?

Or, if they believe this to be the truth, then they just don’t have the experience or expertise to know better, and do you really want to use them to represent you in dealings with the CRA?

Outcome:

I questioned the author in an online social media forum.  I said, “I’ve always understood that an arbitrary assessment was specific to T1 returns and that they were actually quite accurate because most of the information used is already posted to your T1 account, whereas a notional assessment was specific to GST/HST and those figures were based on the industry or SIC code. Can you confirm this is your understanding as well?”

He never responded…

Surprised?

I’m not.

When you have CRA tax collections problems then you need the expertise of the firm with an actual former CRA tax collector.  inTAXicating Tax Services.

Visit us at http://www.inTAXicating.ca

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Belgian Tax Authorities Going After Crypto-Currency Investors

It is no surprise, that the Tax authorities in Belgium, the Special Tax Inspectorate (STI) have begun to monitor investments involving Crypto-Currencies.

The STI have started investigating cases where citizens of Belgium have traded in digital currencies on foreign exchanges, and similar to many other countries around the world, the Belgium tax authorities are checking to see if these investors have been claiming their dealings and paying the 33% Capital Gains tax.

This gain would be reported in the “other income” section on a Belgian tax return.

Belgian tax authorities have found the taxation of Crypto-Currency challenging as every other county has, because the management of these assets takes place on foreign trading platforms and there is no jurisdiction around virtual space… Yet.

Likely, the Belgian tax authorities will follow suit of other countries and tax the gains as a commodity based on the location and / or residence of the trader.

The incentive to report will come in the way of significant penalties and interest when the STI finds the taxpayer before the taxpayer reports.

STI opened the investigations after receiving information from a foreign tax authority about the Crypto-Currency dealings of several Belgian citizens.

Information sharing among all tax authorities increased effective January 1, 2018 with the signing of The Multilateral Competent Authority Agreement (MCAA).

The MCAA is a multilateral framework agreement which provides a standardised and efficient mechanism to facilitate the automatic exchange of information in accordance with the Standard for Automatic Exchange of Financial Information in Tax Matters (Standard).

This new framework avoids the need for several bilateral agreements to be concluded, which means each participating country has ultimate control over exactly which exchange relationships it enters into and that each countries’ standards on confidentiality and data protection always apply.

In case you are ready to deem this framework illegal, the legal basis for MCAA rests in Article 6 of the Multilateral Convention on Mutual Administrative Assistance in Tax Matters (Convention) which provides for the automatic exchange of information between Parties to the Convention, where two Parties subsequently agree to do so.

So as it becomes easier to get information on local citizens from international tax regimes, you can expect government tax authorities, like the STI to continue to approach trading platforms, and other governments  directly to obtain more data about Belgian citizens and their transactions related to digital currencies.

In December 2017, the Belgian tax agency, STI, agreed that a 33% withholding amount would be applied to profits and incomes from Belgian citizens who were involved in speculative trading of Bitcoin and other Crypto-Currency.

The tax is imposed on private individuals who trade in digital currencies with the intention of earning profits from the price fluctuations.

When the crypto trading is conducted by a business, or by an individual as a business, the tax rate might be as high as 50%.

Governments believe that Crypto-Currency companies should be obliged to cooperate with tax authorities, or as in the case of the US, where the IRS sent legal requirements to a firm, who were then required to do so by law.

In Belgium, Crypto-Currency are neither legal, nor illegal, however, the government have not announced a comprehensive policy yet, and like other EU Countries, appear to be waiting for a common European policy.

If you have been dabbling in Crypro-Currency, and not reported it on your Canadian Tax return, you should reach out to us at inTAXicating Tax Services, and we can help you amend your return, report the gaims, claim the losses and get filed before the CRA finds you!

info@intaxicating.ca

 

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;

https://news.bitcoin.com/coinbase-compelled-by-irs-to-provide-13000-customers-information/

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; https://www.irs.gov/newsroom/irs-virtual-currency-guidance; 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.

File!

inTAXicating can be reached at info@intaxicating.ca 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.

 

CRA Taxpayer Relief Information Moved from cra.gc.ca to canada.ca

Looking for information related to the Canada Revenue Agency (CRA) Taxpayer Relief Program?

It’s moved!

Here is the information that matters! Link is at the bottom.

Taxpayer Relief.

Important note: A request for relief from penalty and / or interest amounts does not stop or suspend collection activity on an account or the accrual of interest.

Information you must include with your request

It is important that you provide the Canada Revenue Agency (CRA) with a complete and accurate description of the circumstances to explain why your situation merits relief.

In order to support a request, you should provide all relevant information including the following, where applicable:
• your name, address, and telephone number;
• your social insurance number (SIN), account number, partnership number, trust account number, business number (BN), or any other identification number assigned to you by the CRA;
• the tax year(s) or fiscal period(s) involved;
• the facts and reasons supporting that the interest or penalty were either mainly caused by factors beyond your control, or were the result of actions by the CRA;
• an explanation of how the circumstances affected your ability to meet your tax obligations;
• the facts and reasons supporting your inability to pay the penalties or interest assessed or charged, or to be assessed or charged;
• any relevant supporting documentation such as death certificates, doctor’s statements, or insurance statements;
• in cases involving an inability to pay or financial hardship, full financial disclosure including a statement of income, expenses, assets, and liabilities (to help individuals provide full financial disclosure);
• supporting details of incorrect information given by the CRA in the form of written answers, published information, other evidence; or when the incorrect information given by the CRA is of a verbal nature, you should give all possible details such as date, time, name of CRA official spoken to, and details of the conversation; or
• a complete history of events including any measures that have been taken, e.g., payments and payment arrangements, and when they were taken to resolve the non-compliance.

Note: You may submit photocopies of supporting documents. During the course of our review, the CRA may contact you if they need additional information or documentation, however that is not common.

Other considerations
• Indicate with your request if this is the first or second review request. A second review request is when you ask the CRA to reconsider its original decision.
You must include Form RC4288, Request for Taxpayer Relief – Cancel or Waive Penalties or Interest to make a request to cancel penalties or interest.

You can also write a letter marked “Taxpayer Relief”.

Submitting the Application

You can submit your request to cancel penalties and / or interest and all supporting documents:
• online at My Account, My Business Account, or Represent a Client, by selecting the “Submit documents” service; or
• by mail at one of the designated offices below.
For more information on the Submit Documents online service, go to Submit documents online.

Designated offices:
• British Columbia and Yukon
Vancouver Tax Services Office
9755 King George Boulevard
Surrey BC V3T 5E1
• Alberta, Saskatchewan, Manitoba, Northwest Territories, and Nunavut
Winnipeg Tax Centre
66 Stapon Road
Winnipeg MB R3C 3M2
• Ontario, New Brunswick, Nova Scotia, PEI, Newfoundland and Labrador
Prince Edward Island Tax Centre
275 Pope Road
Summerside PE C1N 6A2
• Quebec
Shawinigan-Sud Tax Centre
4695 Shawinigan-Sud Boulevard
Shawinigan QC G9P 5H9
• Non-resident or international taxpayers (individual, corporation, trust, and part XIII and non-resident withholding accounts)
International and Ottawa Tax Services Office
P.O. Box 9769, Station T
Ottawa ON K1G 3Y4
CANADA

 

Link to CRA website: 
https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/rc4288-request-taxpayer-relief-cancel-waive-penalties-interest.html

 

inTAXicating – Your Canadian Taxpayer Relief experts!  Don’t believe us?  Contact us and find out why!  info@inTAXicating.ca

 

Expected Changes to CRA’s VDP: Preview

On June 9th, 2017, the Canada Revenue Agency (CRA) launched a 60-day online consultation with Canadians on the Voluntary Disclosure Program (VDP), in which the CRA is seeking input from the public to ensure that the program is more “responsive, innovative and fairer for all Canadians”.

One of the key asks by the CRA is this question; “We are asking you – when should the VDP apply? Should it apply only to those who knowingly choose to not pay their taxes or also to those who make mistakes on their returns?”

Based on that question, many organizations have been putting out materials stating that the CRA is changing the program and that it is already been decided, however that is not the case, yet, as the consultation period has not even ended.

What Is Voluntary Disclosure?

The Voluntary Disclosures Program (VDP) gives Canadian taxpayers a chance to change a tax return they have previously filed or file a return that should have filed and by making these changes through the VDP, the Canada Revenue Agency (CRA) may give relief from prosecution and penalties.

By applying to the CRA under the VDP, a Canadian taxpayer might only pay the taxes owing plus interest.

The disclosure MUST meet all four of the following conditions to be valid;
1. A penalty would apply
2. It is voluntary, which means it is made before the CRA takes any compliance action against you
3. the information is at least one year overdue
4. it includes all the relevant information – meaning it is full and complete.

Anyone can use the VDP, including individuals, businesses, employers, payers, trusts and estates, whether a resident or a non-resident of Canada.

Why Changes to the VDP?

When the CRA found out that there were Canadian taxpayers hiding money offshore, they began to consider whether the current VDP was fair for all Canadians. Should a taxpayer who forgets to include an income source be granted the same relief as a taxpayer hiding money overseas and failing to disclose that income in order to reduce the amount of taxes they would have to pay in Canada?

The answer clearly is no, it’s not fair, and the CRA wants to change the program to make it easier for actual errors and omissions to be fixed, while making it much more difficult to allow tax evaders to utilize the program to avoid prosecution.

The most meaningful change expected in the VDP is the introduction of a two-track system:
1) the General Program, and
2) the Limited Program.

The Limited Program would limit the availability of the program in certain circumstances or where there is a “major non-compliance” as such relief for penalty and partial interest relief could be seen as “overly generous.”
Under the General Program, taxpayers who qualify for the VDP will not be charged penalties or referred for criminal prosecution with respect to the disclosure, and may be entitled to partial relief for any interest in respect of assessments preceding the three most recent years of returns required to be filed.

Whereas under the Limited Program, applications that disclose “major non-compliance” will not receive the same level of relief as they would under the current VDP. Taxpayers will not be referred for criminal prosecution and will not be charged a gross negligence penalty with respect to the disclosure, however, other penalties will be charged as applicable such as a late filing penalty, a failure to remit penalty, an instalment penalty or an omission penalty. Additionally, no interest relief will be provided.

What Might Constitute “Major Non-Compliance?”

Major non-compliance might look like this:
• Taxpayers who undertook active efforts to avoid detection through the use of offshore vehicles or other means
• Large dollar amounts being disclosed
• Multiple years of non-compliance
• A sophisticated taxpayer, or use of sophisticated tax avoidance techniques under the advice of a sophisticated professional, and
• The disclosure is made the CRA has released information aimed at cracking down on taxpayers failing to disclose all their income

The determination of whether an application should be processed under the Limited Program will be made on a case by case basis.

Other Considerations
While determining the status of an application to the VDP, the CRA will also consider;
• If they will require payment in full of the estimated taxes owing as a condition of acceptance
• If transfer pricing cases and applications from corporations with gross revenue in excess of $250 million qualify
• If applications that disclose income from the proceeds of crime will be allowed access to the program

The CRA will continue to cancel VDP applications if they learn that the disclosure was not full and complete, or if was intentionally inaccurate.

The release of the changes to the CRA’s VDP will be announced in the fall, and the above is speculation as to what the new program will look like. If you, or anyone you know has failed to fully or accurately disclosure income, it’s best for them to speak to a professional now, especially before there are changes to the program which might disqualify them.
At inTAXicating, we are always available to discuss the CRA’s VDP and you can find us at http://www.intaxicating.ca, or send us an email to info@inTAXicating.ca.

The Truth about the CRA Voluntary Disclosure Program (VDP) that no one wants you to know

Before you waste time and money paying a tax solution company to walk you through the Canada Revenue Agency’s (CRA) Voluntary Disclosure Program (VDP), you might want to read this post and learn the facts they don’t want you to know.

In order to “qualify” for the Voluntary Disclosure Program, there are some important facts which must be taken into consideration first;

  1. The disclosure must be voluntary, and by voluntary, the CRA means that the business or taxpayer must not be aware of or have knowledge of an audit, investigation or other enforcement action set to be conducted by the CRA, or initiated by the CRA, with respect to the information being disclosed.
  2. The disclosure must be complete, meaning that all information must be disclosed and all the outstanding years must be filed in this application.
  3. The disclosure must involve the application of a penalty, such as, but not limited to, Late Filing Penalties (LFP), Late Remitting Penalties (LRP), and Failure to make installments, Gross Negligence Penalties.
  4. The disclosure must relate to information that is at least one year past due.

 

If you’ve fallen behind in filing, or failed to disclose or declare income – possibly from overseas / offshore investments / tax shelters / income properties, and the CRA has not previously tried to contact you for the returns, then the VDP might be for you.

The VDP allows taxpayers who make a valid disclosure under the Income Tax Act (ITA) to pay taxes owing plus interest, but avoid penalty and / or prosecution.

To make a valid voluntary disclosure, with the CRA means you would pay only the taxes you owe plus interest, and you may avoid penalties and potential prosecution on the information accepted under the program.

You can file a disclosure to correct inaccurate or incomplete information or to provide information you may have omitted in your previous dealings with the CRA.

To submit a disclosure, fill out and sign Form RC199, Voluntary Disclosures Program (VDP) Taxpayer Agreement, or write a letter giving the same information as on the form.

You can submit your Form RC199 or your equivalent letter to the CRA directly, using the Submit documents online service now available through My AccountMy Business Account and Represent a Client.

Once you have logged in to one of these portals, click on “Submit documents” on the left hand navigation menu, select “I do not have a case or reference number,” and then select “Make a voluntary disclosure.” From this point you will be prompted to upload your letter or Form RC199 as well as to provide a short file description.

At the end of the process, you will be given a reference number that you can use if you need to add more documents.

You can also send your disclosure by mail to one of the CRA’s tax centres.

 

The following are circumstances under which VDP relief may be granted:

  • you did not fulfill your obligations under the applicable act;
  • you did not report taxable income you received;
  • you claimed ineligible expenses on your tax return;
  • you did not remit your employees’ source deductions;
  • you did not report an amount of GST/HST (which may include undisclosed liabilities or improperly claimed refunds or rebates or unpaid tax or net tax from a previous reporting period);
  • you did not file information returns; or
  • you did not report foreign-sourced income that is taxable in Canada.

 

Disclosures relating to any of the following are not accepted under the VDP:

  • bankruptcy returns;
  • income tax returns with no taxes owing or with refunds expected;
  • elections;
  • advance pricing arrangements;
  • rollover provisions; and
  • post-assessment requests for penalty and interest relief.

 

You can make an anonymous disclosure, referred to as a “no-name” disclosure.  You will have 90 calendar days – beginning on the date the CRA notifies you that there are 90 days to provide the identity of the taxpayer involved, not 90-days from the date of initial disclosure.

The CRA will close the disclosure file without further contact if the identity is not provided before the 90th day.

Additionally, payments should begin as soon as the disclosure is made in order to reduce the amount of interest which is accruing on the file.

Any “taxpayer” can use the VDP, because the CRA considers a taxpayer to be an individual, an employer, a corporation, a partnership, a trust, a goods and services tax/harmonized sales tax (GST/HST) registrant/claimant, and a registered exporter of softwood lumber products. You can also have an authorized representative make a disclosure for you.

 

Time Limit:

There is no limit on how far back the VDP will request or review information. A disclosure must be complete and provide all the relevant information to allow the VDP officer to appropriately review and decide whether statute-barred years should be opened for reassessment. Income will be assessed in the year it is earned. If you have not filed for several years (that is, you are a non‑filer), you are expected to update all your tax years.

You are expected to keep your affairs up to date after using the VDP. You cannot make a second submission for the same issue for which you originally received the benefits of the program, however the CRA will consider a second disclosure in situations where the circumstances were beyond your control.

If this is the case, you will be required to give the CRA your name and tell them that you previously made a disclosure. If you do not reveal that you previously made a disclosure and this is uncovered by the CRA, your disclosure may be considered invalid and denied.

 

Additional information from the CRA

Form RC199, Voluntary Disclosures Program (VDP) Taxpayer Agreement

Form RC59, Business Consent

Form T1013, Authorizing or Cancelling a Representative

Information Circular IC00-1R4, Voluntary Disclosures Program

Making a Voluntary Disclosure on your Ontario Corporate Tax

 

Beyond the VDP is the opportunity to apply for Taxpayer Relief for full or partial relief of penalties and or interest, if applicable.

Save yourself the hassle of being subjected to someone else’s agenda.  Know your rights, and your options.  Know the truth.

 

For further information or to discuss the VDP and Taxpayer Relief provisions, send an email to us at info@intaxicating.ca

 

CRA Reminder! This Monday, June 15th 2015, is the Deadline for Self-Employed Individuals to File their 2014 Income Tax and Benefit Return!

inTAXicating and The Canada Revenue Agency (CRA) would like to remind those taxpayers who are self-employed individuals (and their spouses or common-law partners) that the 2015 personal tax (T1) tax filing deadline is midnight on Monday, June 15, 2015.

If you had an outstanding balance for 2014, it would have had to be paid to the CRA on or before May 5th 2015, which is different from the normal April 30th deadline as a result of that extension granted by the CRA this year.

If you miss the deadline, you might be liable for a late-filing penalty (cumulative if you have been filing late in multiple consecutive years), and / or a late-filing penalty on amounts owing which applies to returns received after the June 15, 2015 deadline.

The CRA suggests you file electronically, using NETFILE , which allows you to file your individual income tax and benefit return over the Internet quickly and easily.  For a list of software and web service options, including those that are free for everyone, go to http://www.netfile.gc.ca/software.

If you have a balance owing, you can make your payment using your financial institution’s telephone or Internet banking service. For more information about online payments, go to http://www.cra.gc.ca/payments or contact your financial institution, or search through the blog posts at inTAXicating.wordpress.com for a post on how to make payments to the CRA.

You can also pay using the pre-authorized debit online service offered through the CRA’s “My Account” feature. The pre-authorized debit allows you to:

  • Set up a payment to be made from your bank account to the CRA on a pre-set date
  • pay an overdue amount
  • make instalment payment

You can also make your payment using the CRA’s “My Payment” service. My Payment lets you make one or more payments in one simple online transaction.  You can use this service if you have access to online banking at a participating financial institution.

You can also sign up for direct deposit to receive your refund in your account at your Canadian financial institution-no more waiting for a cheque to arrive in the mail, however as I have mentioned in many previous posts, signing up for this service provides the CRA with your banking information which is the first place they will try to seize if you ever have a balance owing to them.

Save time – go online!

The CRA’s online services make it faster and easier to handle your business’s tax matters. You, your employee, or your representative can file, pay, and access detailed information about your tax accounts-all online, all at your fingertips. To learn more about the CRA’s electronic services for businesses, go to http://www.cra.gc.ca/businessonline.

If you have questions or concerns regarding your taxes or a letter / notice you have received from the CRA, drop us an email at info@intaxicating.ca or intaxicatingtaxservices@gmail.com.  Take advantage of our free consultation.