Tax Insights 2017

Wednesday September 20, 2017 :    8:00 AM – 12:00 PM EDT   DESCRIPTION Timely insights on today’s critical tax issues. Find out what they mean for your business & your clients. Topics   1. Killing Small Business- A review of proposed private corporation tax changes. Nathan Wright, LL.B.   2. GST/HST and sales tax developments you need to know. Simon Thang, LL.B, …

New Rules for Claiming the Principal Residence Exemption

Canadian residents who dispose of their family home and realize a gain may be eligible to claim an exemption when computing the tax on that gain.  The exemption can eliminate all or part of the taxable capital gain, depending on the circumstances.  This is known as the “principal residence exemption” (PRE) which has been a part of the Canadian tax system for many …

The CRA and the Power to Compel Information

The CRA has broad powers to audit taxpayers and demand information from taxpayers and third parties. There are few limitations on the power to audit and compel information. However, if a taxpayer becomes the subject of a criminal investigation, their rights under the Charter of Rights and Freedoms are engaged and act as a check on CRA power.   The …

Bankruptcy and Tax Debts

Bankruptcy is a process to relieve honest, but unfortunate, debtors of their debts. Usually, at the end of the process, the bankrupt is released from the obligation to repay the debts they had when the bankruptcy was filed. One of the largest causes of personal and corporate insolvencies in Canada is tax debts. Options under the Bankruptcy and Insolvency Act …

Canada Revenue Agency’s Collection Powers

The Canada Revenue Agency (CRA) collects amounts owing such as: individual and corporate income tax, payroll deductions, GST/HST remittances, benefit overpayments (eg, Canada child benefit and GST/HST credit), etc. The CRA can also collect amounts owing for other government programs, such as: defaulted student loans, EI overpayments and penalties, CPP overpayments, etc.   If a taxpayer has failed to pay …

Canada Revenue Agency’s Voluntary Disclosure Program

The Canada Revenue Agency’s (“CRA”) voluntary disclosure program (VDP) allows taxpayers to correct inaccurate or incomplete information or disclose unreported information. If a taxpayer’s disclosure meets the CRA’s conditions for the VDP, the taxpayer is not assessed penalties or criminally prosecuted with respect to the disclosure and the CRA charges reduced interest (in some cases).   The CRA will only …

Negligence – The Penalties Can Be Gross

A gross negligence penalty (“GNP”) is a discretionary penalty applied by the Canada Revenue Agency (the “CRA”) when the CRA believes that a person has knowingly, or in circumstances amounting to gross negligence, made or participated in the making of a false statement or omission in a return. The penalty is severe and is the greater of $100 or 50 …

The Tax Court of Canada

If a taxpayer receives an assessment or reassessment from the Canada Revenue Agency (CRA) with which they disagree, their first opportunity to dispute the assessment is by filing a notice of objection with the CRA and attempting to resolve the matter with the CRA Appeals Division. If, after the objection process has ended, the taxpayer still disagrees with the CRA’s …

Canada Revenue Agency Audits

In 2015, the federal government committed to providing the Canada Revenue Agency (CRA) with additional audit resources. The CRA is expecting $118.2 million for underground economy audits, $25.3 million for offshore tax evasion and aggressive tax avoidance and $58.2 million for avoidance by large, complex entities. The CRA’s audit activity will increase as a result of the increase in resources. …

The Requirements Of The Voluntary Disclosure Program

The Voluntary Disclosures Program (“VDP”) provides taxpayers a chance to bring their taxes up to date. This includes individuals, corporations, trusts, and partnerships. Any taxpayer can utilize the VDP to request that CRA reduce interest and eliminate the penalties that would have been applied against the taxpayer if their tax non-compliance had been discovered through an audit. There are four …