Understanding Trust Amounts and CRA Collections
Understanding Trust Amounts and CRA Collections
When running a business, understanding your responsibilities around trust amounts and how the Canada Revenue Agency (CRA) handles collections is crucial. Failing to manage these obligations properly can lead to audits, penalties, and aggressive collection action. This article...
Tax Treaties: An Overview
Understanding Tax Treaties: The Basics and Importance
Tax treaties play a pivotal role in the global tax system. They are bilateral agreements between two countries designed to avoid double taxation on income and capital, as well as to prevent tax evasion. In an increasingly interconnected world, where businesses and...
The CRA Collections Process
Overview of the CRA Collections Process
Canada Revenue Agency (CRA) has specific guidelines and periods regarding the collection of outstanding tax debts.
Assessment and Notification:After filing a tax return, the CRA assesses the return and issues...
CRA Collections
CRA Collections
When taxpayers fall behind on their tax obligations, the Canada Revenue Agency (CRA) has broad powers to collect outstanding amounts. Whether you are an individual or a business, understanding the CRA’s collection process is critical to protecting your financial interests and resolving tax debts...
The Power to Audit is the Power to Destroy
The authors of this article address the serious problem of lack of effective recourse for Canadian taxpayers where they are subject to the abusive exercise of audit and/or assessment powers by tax officials:...
Unreported Income and the Canada Revenue Agency
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...
Gross Negligence Penalties
Gross Negligence Penalties are penalties meant to punish taxpayers such as for their failure to report income or in claiming false credits. Depending on whether they are GST/HST, or Income Tax related, the penalty will add 25% or 50% to any balance owing.To issue a gross negligence penalty, the Canada Revenue Agency (“CRA”) must prove that...
CRA Penalties and Interest
When taxpayers owe money to the Canada Revenue Agency (“CRA”), the amounts can quickly rise because the CRA charges interest on top of the amount owing. Additionally, if you file late, the CRA will hit you with penalties, and they even charge interest on those penalties. Before you know it the amount you owe could be insurmountable.Interest...
Bulk Taxpayer Relief Requests & Relief For Extreme Weather Events
Bulk Taxpayer Relief Requests & Extreme Weather Events
Canada Revenue Agency (CRA) released guidance on “bulk” taxpayer relief requests as well as taxpayer relief for “extreme weather events.” CRA makes specific reference to the “unprecedented...
Section 225.1 and Tax Shelter Collections
CRA Collections - Tax Shelters & Large Corporations
CRA Collection Restrictions pursuant to Section 225.1 of the Income Tax Act
Pursuant to section 225.1 (subsection 7) of the Income Tax Act, RSC 1985, c 1 (5th Supp), Canada Revenue Agency (“CRA”) can collect 50% of the disputed...