What is CRA Tax Evasion? The Canada Revenue Agency states that an individual or business engages in tax evasion when they intentionally ignore Canada’s tax laws. More specifically, it is the willful decision to suppress or avoid disclosing income required to…
The Difference Between a CRA Audit, and a CRA Review The Canada Revenue Agency (“CRA”) has two options when looking at reassessing or adjusting tax returns. First, “tax reviews”, which are not formal audits, but rather a process that promotes…
What is a Taxable Benefit? A taxable benefit is a benefit that a taxpayer receives, typically paid for by a corporation, that is more related to personal choices than business expenses. If this is the case, then the taxable benefit…
The Tuition Tax Credit The tuition tax credit (“TTC”) is a non-refundable tax credit that helps Canadian students who are currently attending, or recently finished attending post-secondary education. The cost of post-secondary education represents a financial detriment to many Canadian students and…
The Canada Revenue Agency (“CRA”) can charge interest and penalties for a variety of reasons. Perhaps more worrisome is the alarming rate that penalties and interest can accrue at thereafter. Interest and penalties can easily accumulate to amounts greater than…
Anyone who has been audited will tell you about the amount of time they spent compiling receipts, bank statements, and other documentation to refute assessments made by an auditor. Once an auditor has made their determination of what a taxpayer…
A Principal Residence audit occurs when the Canada Revenue Agency audits a taxpayer for the sale of one, or multiple properties where no taxes are paid. No taxes are paid because the taxpayer is claiming the Principal Residence Exemption, which…
It’s no secret that Vancouver is one of Canada’s hottest real estate markets, and that other large urban centres in British Columbia have enjoyed similar popularity in investment patterns. A limited supply of housing, however, has caused issues with accessibility….
Unreported Income and the CRA Canada’s tax system is built on the premise that those filing their taxes are being honest with the Canada Revenue Agency (CRA). You are expected to report the proper amount of income, and expenses. Of…
The Disability Tax Credit The disability tax credit (DTC) is a non-refundable tax credit that helps Canadians with disabilities pay for their out of pocket expenses. The credit is intended to provide greater tax equity by allowing relief for disability…