5 BULLET FRIDAYS - Tax Mechanic News, Tips, Strategies

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🎉 GST/HST Break: More Money in Your Pocket! 🎉

December 13, 2024 | Ottawa, Ontario | Canada Revenue Agency

The Government of Canada has passed new legislation to enact the Goods and Services Tax/Harmonized Sales Tax (GST/HST) break, running from December 14, 2024, to February 15, 2025. This initiative is designed to put more money back into your pocket by offering tax breaks on a variety of everyday essentials.

What’s Included? 🛍️

• 👕 Children’s clothing and footwear

• 🧷 Children’s diapers

• 🚗 Children’s car seats

• 🧸 Certain children’s toys

• 🧩 Jigsaw puzzles

• 🎮 Video game consoles, controllers, and physical video games

• 📚 Physical books

• 📰 Printed newspapers

• 🎄 Christmas and similar decorative trees

• 🍽️ Most food and beverages and related services

Shopper’s Guide 🛒: No extra steps needed! The GST/HST break will be automatically applied at checkout on qualifying items during the eligible period. If you're charged GST/HST on a qualifying item, ask the supplier or retailer for a refund. 🧾

Information for Businesses 📈: From December 14, 2024, to February 15, 2025, businesses must not charge GST/HST on qualifying goods and services. This applies to all supply chain stages—from manufacturer to consumer. Visit the CRA website for more guidance if needed.

The CRA will focus compliance efforts on businesses that willfully refuse to comply. Businesses making reasonable efforts to comply will not be the primary focus.

Quick Access to Info 📲

The CRA has published a new poster to make this period as smooth as possible. It includes:

• 📜 A clear list of qualifying items

• 📱 A convenient QR code for instant access

• 📄 A downloadable/printable version for businesses

Happy saving and shopping! 🛍️🎉

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🎥 How to Plan an Epic 2025 in 56 Minutes | Jesse Itzler 🚀

Issued By: My First Million

Join Sam Parr and Shaan Puri as they talk to Jesse Itzler about living an epic life in Episode 659 of My First Million. Get ready to plan an extraordinary 2025 with actionable tips and inspiring stories.

Show Notes:

Key Highlights:

• Innovative Mindset: Techniques to start the year with a fresh perspective. 🧠

• Personal Growth: Embrace new habits and adventures. 🌱

• Goal Achievement: Tips for effective goal-setting and documentation. 🎯

• Maximizing Potential: Strategies to make 2025 your best year. 🌟

This episode is packed with valuable insights and practical advice for anyone looking to live an epic life in 2025. Follow the journey and implement these tips to make the most of the upcoming year! 🌟

📋 Tax Debt Resolution & Financing Program

For Tax Debts under $100K

💼 Legal Fee: The Cost of the Buy-down of the Interest Rate to less than 10% + Service Fee (i.e., % of Total Financing Sought)

How the Program Works

📝 Initial Consultation & Assessment

• Free Initial Consultation: Evaluate the client's tax debt situation (individual or business), assess CRA notices, and devise the optimal resolution strategy.

• Eligibility Review for Financing: Collaboration with the Tax Mechanic to assess client eligibility for the 0% interest financing option.

🔍 Engagement & Financing Agreement

1. Service Engagement: Once deemed eligible, the client signs a retainer agreement with the law firm.

2. Financing Application: Assistance provided to the client in completing a financing application with the partner financing company.

3. Immediate Payout: Upon approval, 100% of the legal fees, including the total tax debt amount, is deposited directly into Lawlignment's trust account.

⚖️ Legal and Financial Management

🔧 Comprehensive Tax Debt Resolution Services

• Debt Analysis & Negotiation: Development and execution of a tailored legal strategy (e.g., negotiating installment agreements, filing objections, or exploring offers in compromise).

• Ongoing Legal Representation: Representation of clients in dealings with the CRA, ensuring compliance and favorable outcomes.

💳 Client’s Repayment to Financing Company

This program offers a structured and efficient approach to resolving tax debt, ensuring clients receive comprehensive support from initial consultation to final repayment. By leveraging professional legal and financial management, clients can achieve favorable outcomes and clear their tax debts with confidence. 💼

🔍 Fraudsters Beware: CRA to Launch Income Verification Tool Soon

The Canada Revenue Agency (CRA) is set to introduce a groundbreaking income verification tool designed to combat mortgage fraud. Highlighted in the federal government’s 2024 Fall Economic Statement, this initiative marks a critical step towards bolstering financial integrity. 🏦

Understanding Mortgage Fraud 🏠
Mortgage fraud, often termed application fraud, occurs when false information is submitted on mortgage applications. This deception can be perpetrated by the applicants or others on their behalf, potentially jeopardizing future mortgage or credit opportunities.

CRA’s Strategic Measures 🔒

To address this issue, the CRA has undertaken several strategic initiatives:

1. Engagement with international tax administration partners 🌐

2. Consultations with experts in IT, privacy, security, and legal fields 🛡️

3. Collaboration with the broader financial sector, including mortgage lenders 🏦

These efforts are focused on developing secure and efficient solutions to detect and prevent fraud. The new measures are expected to be in place by early 2025. 📅

Current Trends in Mortgage Fraud 📉: Equifax Canada Reports a Downward Trend in Mortgage Fraud

• Challenging Market: Despite a tough mortgage market, fraud rates in mortgage applications increased by 9.9%in Q4 2022 compared to the previous year.

• Improvement Over Time: By September 2024, these rates had decreased by 16.3% year over year. 📊

• Regional Variations: Alberta remains the only province with a rise in application fraud, often involving falsified income and employment documentation. 📄

Conclusion 📰: CRA’s New Tool: A Proactive Approach

• Safeguarding the Financial System: The CRA’s forthcoming tool signifies a proactive approach to safeguarding the financial system.

• Ensuring Transparency: Ensuring transparency in mortgage applications, this initiative aims to mitigate the risks of mortgage fraud.

• Benefits: Benefiting both consumers and financial institutions alike. 🌟

Source: Daily Hive

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CRA vs. Canadian Army 📢

A Shocking Comparison 🤯- Did you know the CRA has more employees than the Canadian Army? It’s like they’re training tax ninjas! Let’s dive into the numbers and see what’s really going on.

@taxmechanic

CRA got more employee than Canadian Military 🎖️ 🪖 What's your thoughts on this? #canada🇨🇦 #tax #ontario #fyp #explore #information

CRA Workforce 🏢- The Canada Revenue Agency boasts an impressive 58,000 employees. That's a massive force dedicated to managing the country's tax system.

Military Strength 🪖- In contrast, the Canadian Army has just 33,899 soldiers. It's fascinating how a tax agency can outnumber our military personnel!

Engage with Us! 📣: Do you think the rich are getting off easy while the rest of us pay up? Share your thoughts in the comments!
Stay tuned for more intriguing facts and insights on our social media platforms. Follow us for the latest updates and join the conversation! 🎯✨