The limits of a statutory court’s powers
The Limits of a Statutory Court’s Powers Hot off the email presses, this Federal Court of Appeal case on an assessment by the CRA and the dismissal of the taxpayer’s appeal at the Tax Court of Canada, reinforces that statutory court’s are limited in the relief they can offer taxpayers: [39] Where an assessment of income […]
Are you saying that the assessment wasn’t mailed to you?
Are you saying that the assessment wasn’t mailed to you? This recent tax court case demonstrates the difficulty in supporting the headline assertion by a taxpayer. As this is a common reason given by taxpayers for not appealing their assessment within the statutory 90 days limit (or 90 days and 1 year in special cases) […]
Credibility & Reliability Redux
Credibility & Reliability Redux In this recent TCC case the appellant had their 2006 tax return reopened despite it being outside the statute barred period and was reassessed for charitable donations that the CRA believed that he did not make but claimed regardless. As a reminder, the CRA’s assessment of tax owing is deemed to […]
Tax Schemes
Tax Schemes I’m on CRA’s enforcement notifications email and this one just came out. The person charged, convicted and jailed under this enforcement, Festus Bayden (his partner Eric Armah was convicted in 2011 and sentenced to 3 years in prison) was a tax preparer who provided clients fraudulent charity tax receipts totaling more than $34 […]
How the Income Tax Act Works for Gig Workers
How the Income Tax Act Works for Gig Workers H&R Block does a survey each year on gig workers and intentions toward tax. In this year’s survey the notable results are: “When it comes to declaring gig-related income, the research reveals that a significant portion of gig workers are willing to take risks when filing […]
Documentary Evidence is Not a Suggestion
Documentary Evidence is Not a Suggestion Assessed for Tax Owing in the Past 90 Days? This recent tax court case illustrates that reliable records need to be kept throughout the business year and not just considered annually for tax purposes. These words from the judge were particularly biting in making the tax liability worse by […]
New Housing Rebates (prior to 2021 amendments)
New Housing Rebates (prior to 2021 amendments) Recently I attended the tax court and witnessed a case where an appellant was denied a New Housing Rebate (NHR). I wrote about what I witnessed in this post. The appellant in that case entered into a purchase and sale agreement for a new build as a “bare […]
Deadlines schmeadlines, right?
Deadlines Schmeadlines, Right? This recent Federal Court of Appeal affirmation of the deadline to file an objection or an application for extension to appeal an assessment demonstrates that the statutory deadlines are not a suggestion. In this case the corporation did not file a GST/HST return for the 2010 tax year and was assessed an […]
Relying on CRA’s auto-fill feature can be risky
Relying on CRA’s Auto Fill Feature Can Be Risky This article in the Financial Post illustrates how easy it is to get into serious financial issues with the CRA and how difficult it can be to get out. In this Federal Court case, the taxpayer relied on the CRA’s auto-fill feature to populate the income […]
New Housing Rebates Denied
New Housing Rebate Denied The objective evidence has to support the rebate application or the CRA will deny the rebate Thousands of New Housing Rebates and New Residential Rental Property Rebates are denied annually for various reasons that may or may not be correct. However, in this particular case the rebate was correctly denied and […]