Tag Archives: All

Introduction: Charity Tax Credits and the Risk of Tax Shelters Canada’s tax system incentivizes personal charity by offering tax credits for charitable donations. However, donation tax shelter schemes can lead to serious consequences, including reassessments, penalties, and loss of expected tax benefits.  This article examines a key case, Eisbrenner v. Canada, highlighting the risks of […]

Introduction: Tax Planning and Unintended Consequences Tax planning is crucial for minimizing tax liability and achieving financial efficiency. However, errors in tax planning or implementation can result in significant unintended tax consequences.  In such cases, a taxpayer may be able to obtain a rectification order from a provincial court to correct the underlying document or […]

Introduction: What is a Henson Trust? A Henson trust is a specialized legal arrangement designed to provide supplemental financial support to individuals with disabilities without jeopardizing their eligibility for income-tested government programs such as the Ontario Disability Support Program (ODSP). These trusts aim to safeguard both the financial future and the government benefits that disabled […]

Taxpayers are often overwhelmed by a tax assessment or Tax Statement of Account showing a balance owing that seems impossible to pay. However, ignoring the problem is not the solution and can lead to severe consequences.  This article provides actionable steps to address and resolve CRA tax debt. What Happens if I Ignore CRA? A […]

A tax audit can be an intimidating and costly process. The Canada Revenue Agency (CRA) tax auditor will typically request books, records, and bank statements for review and may even ask you to complete questionnaires. Any inaccurate or incomplete information, even if due to an error, can be used against the taxpayer.  Engaging a tax […]

Introduction In certain circumstances, the Canada Revenue Agency (CRA) may reduce or eliminate interest and penalties charged to taxpayers. This relief is available through a Taxpayer Relief (Fairness) Application, which can be submitted when exceptional situations beyond a taxpayer’s control result in financial penalties or accrued interest. This article outlines the eligibility criteria, process, and […]

Introduction: Directors of corporations hold significant responsibilities, including overseeing financial, legal, and operational matters. Among these responsibilities is ensuring compliance with tax laws. Under Canadian tax legislation, directors can be held personally liable for specific tax obligations of their corporations, particularly for unremitted source deductions and GST/HST.  This article delves into the nuances of director’s […]

Net worth audits are among the most powerful tools the Canada Revenue Agency (CRA) employs to uncover unreported income. While these audits can be effective for tax authorities, they often pose significant challenges for taxpayers, particularly small business owners and individuals.  This article delves into the methodology behind net worth audits, their implications, and how […]

Introduction – Managing Tax Audits for Business Expenses For small businesses, maintaining organized books and records is crucial for withstanding scrutiny during a CRA tax audit. However, the realities of running a business often mean that documenting every legitimate business expense takes a backseat to day-to-day operations. Unfortunately, this can create significant issues, as CRA […]