Audits

The Government of Canada has recently proposed enhancing the Canada Revenue Agency’s (CRA) audit powers under the Income Tax Act. CRA already has vast powers to compel taxpayers to provide information and documentation. CRA can even force taxpayers to appear for in-person meetings. However, CRA claims this is not enough and new measures will be...

CRA’s Offshore Audits: What You Need to KnowIn recent years, the Canada Revenue Agency (CRA) has significantly ramped up its efforts to combat offshore tax evasion. With the global economy becoming increasingly interconnected, CRA’s focus on offshore audits is more critical than ever for taxpayers with international financial...

In Canada, the obligation to report income accurately to the Canada Revenue Agency (CRA) is not just a legal requirement but a cornerstone of our tax system. However, instances of unreported income can arise due to various reasons, sometimes inadvertently, leading to potential legal implications with the CRA.Understanding Unreported...

It is crucial to understand whether a real estate transaction in Canada is subject to the Goods and Services Tax (GST) and Harmonized Sales Tax (HST). For those dealing with residential complexes, certain sales may be exempt from GST/HST under specific conditions outlined in the Excise Tax Act (ETA).Canada Revenue Agency (CRA) audits targeting...

When dealing with the Canada Revenue Agency (CRA), it’s crucial to understand the significance of having access to all relevant working papers, documentation, and information. This is especially true when preparing to arguments in support of a Notice of Objection. Failing to obtain and thoroughly review these documents can severely undermine...

Are you considering leaving Canada for tax purposes, otherwise known as becoming a non-resident of Canada for tax purposes? Whether you’re relocating for work, retirement, or simply seeking a change in lifestyle, there are important tax implications to consider. Why People Leave Canada for Tax Purposes  There are several reasons why...

Tax deductions play a crucial role in reducing the taxable income of small businesses in Toronto, allowing them to retain more of their hard-earned profits. Understanding and maximizing available deductions can significantly impact the financial health of small businesses. In this blog post, we’ll explore the importance of tax deductions for...

As a tax lawyer, I understand the stress and uncertainty that comes with receiving a notice of an audit, especially when it pertains to being classified as a personal services business. Being audited for this classification can be daunting, but it’s crucial to remember that you have rights and options. In this blog post, I’ll dive into...

When selling a property, difficult rules and exceptions may apply. Among these rules lies Subsection 191(5) of the Excise Tax Act (ETA), which introduces an exception that can significantly impact builders of residential complexes or additions. Normally, when a builder moves into a home, they must self-assess GST/HST. This means that they take the...

Renovating a property can be an exciting endeavor, whether it’s for personal enjoyment or as an investment. However, when it comes to tax implications, particularly under the Goods and Services Tax/Harmonized Sales Tax (GST/HST) in Canada, understanding what constitutes a substantial renovation is crucial. The reason is because if you...