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 …

Filing a Notice of Objection – The First Step in a Dispute with CRA

This article provides an overview of what is, for many taxpayers, the first step in a dispute with Canada Revenue Agency (“CRA”) – the “Notice of Objection”. For most people, dealing with their taxes entails gathering all their t-slips and other relevant information and handing it off to their accountant or doing it themselves at home. They receive an assessment, …

Capital vs Income

Many disputes arise over whether a gain from a sale should be treated as “business income” or “capital gain”. This is a common subject of tension between taxpayers and CRA because only half of a capital gain is taxable, while the full amount of business income is taxable. A common metaphor to illustrate the difference between the two types of …

Director Liability and the Available Defences

If you are a business owner who has chosen to incorporate, it’s likely that you are a director and officer of that corporation. Many owners don’t realize it, but directors are liable for the unremitted GST/HST of a corporation (pursuant to section 323 of the Excise Tax Act), and the unremitted source deductions of the corporation, including EI and CPP …

Gross Negligence

Canada’s self-reporting tax system relies on taxpayers to identify and report their income. Because of this, taxpayers are often confronted with the decision of how to report a certain stream of income – for example, whether a certain transaction should be treated as business income or capital gain, tax deductible or non-deductible or what proportion of a property is related …