Penalties

Choptiany v. The King, 2022 TCC 112 The case of Choptiany v. The King, 2022 TCC 112 involved a tax scheme promoted by DeMara Consulting Inc. and Fiscal Arbitrators. It centered on convincing some taxpayers to unwittingly claim fictitious business losses and expenses to create large tax refunds. The Canada Revenue Agency...

Swift v. The Queen, 2020 TCC 115 & Coates v. The Queen, 2011 TCC 74 & GST/HST In Ontario, for example, many taxpayers bought and/or renovated homes consecutively during the housing upturn. Consequently, it has been common for Canada Revenue Agency (“CRA”) to target the consecutive purchase and sale of 3 or 4 homes...

March 21, 2025 Government Announcement re: GST/HST and Corporate Tax Relief for Businesses Canada Revenue Agency (CRA) is implementing relief from GST/HST and corporate tax remittances for approximately 3 months.According to the government’s announcement businesses can “efer corporate income tax payments and...

New CRA Policy on Gross Negligence Penalties for SR&ED Claims The Canada Revenue Agency (CRA) has updated its enforcement approach for Gross Negligence Penalties under subsection 163(2) of the Income Tax Act, affecting Scientific Research and Experimental Development (SR&ED) claims. Effective January 28, 2025,...

Offshore Audits: What You Need to Know In recent years, the Canada Revenue Agency (CRA) has ramped up its focus on offshore tax compliance, leading to a significant increase in offshore audits. These audits are designed to ensure that Canadians with offshore assets and income are reporting them accurately and paying the...

The Principal Residence ExemptionThe principal residence exemption is a significant tax benefit in Canada, shielding homeowners from capital gains tax when they sell their primary home. However, for a property to qualify for this exemption, it must meet certain criteria. Let’s explore these requirements and the remedy available if a taxpayer...

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:...

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...

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 Income...

The Canada Revenue Agency’s (CRA) Voluntary Disclosure Program (VDP) offers taxpayers a chance to correct past errors or omissions without facing penalties or prosecution. However, for a disclosure to qualify under this program, it must meet specific criteria, with the most critical being that the disclosure is voluntary. This blog will delve...