The Income Tax Act[1] provides liability for the directors of a corporation where there has been: Failure to collect and remit source deductions under the Canada Pension Plan Act,[2] the Employment Insurance Act[3] and the income Tax Act; and Failure to collect and remit HST under the Excise Tax Act.[4] In order for the Canada Revenue Agency (CRA) …
In February 2019, the Canada Revenue Agency (CRA) published Audit Communique AD-19-01 “Audit Agreement and Waiver of Objection Rights.”[1] The purpose of the document is to provide guidance on negotiating an audit agreement with taxpayers and obtaining a waiver of objection rights. Audit Agreements According to the document an audit agreement is “an agreement between the CRA and …
The Canada Revenue Agency (“CRA”) often applies penalties when a taxpayer has failed to comply with their obligations under the Income Tax Act, Excise Tax Act and other acts which the CRA administers.[1] The CRA can apply penalties for late-filing returns, repeatedly late-filing returns, failing to report income, deficiencies in foreign reporting obligations, for being grossly negligent, etc. Interest (currently, …
An individual may deal with the business, property or estate of another person as a representative. That business, property or estate may owe amounts to the Canada Revenue Agency (CRA). The amounts can include federal income taxes, provincial and territorial taxes administered by the CRA and outstanding Canada Pension Plan and Employment Insurance premiums, including any interest and penalties. If …
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 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 …
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 …
