5 BULLET FRIDAYS - Tax Mechanic News, Tips & Strategies

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CRA Data Breach Compensation Now Open

Canadians affected by the 2020 Government of Canada account breach can now apply for compensation following a Federal Court-approved class action settlement. The federal government has agreed to fund more than $8.7 million in payments, although it continues to deny wrongdoing.

Who May Qualify

The breach affected Government of Canada online accounts, including CRA My Account, My Service Canada accounts and GCKey-linked services, between March 1 and December 31, 2020. In some cases, unauthorized users changed banking information and fraudulently claimed COVID-19 benefits.

Compensation Depends on the Impact

Payments vary according to the consequences experienced by each claimant. Individuals who incurred documented financial losses may qualify for substantially more than those claiming compensation only for time spent resolving account issues.

Filing Requirements

Eligible Canadians must submit a claim through the court-appointed administrator, KPMG. Supporting documentation may be required, particularly for fraud losses, identity-theft costs or other unreimbursed expenses.

Source- CTV News

Million-Dollar Opportunities Hide in Plain Sight

The episode’s core idea is simple: valuable businesses often emerge from noticing what others ignore. Sam Parr and Shaan Puri examine unusual markets, including laboratory testing and commodity disruptions, to show how overlooked problems can reveal significant commercial opportunities.

The Art of Noticing

Opportunity spotting requires more than brainstorming. It means paying attention to inefficiencies, unusual economics, recurring frustrations and industries that appear boring or obscure.

The advantage is not having more ideas. It is seeing valuable signals earlier than everyone else.

When CRA’s Litigation Conduct Ends the Case

In Choptiany v. The King, 2022 TCC 112, the Tax Court allowed five taxpayer appeals because the Crown repeatedly failed to comply with discovery rules and court orders. The decision is significant because the appeals concerned gross negligence penalties, yet the Court disposed of them based on procedural misconduct rather than the underlying tax merits.

Repeated Non-Compliance

The Court found a consistent, intentional pattern of non-compliance. After three examinations for discovery, the Crown had still failed to provide properly informed witnesses, complete relevant disclosure, and correct inaccurate answers. The resulting delays and costs materially prejudiced the taxpayers.

Why the Court Allowed the Appeals

A fourth discovery was considered inadequate. Previous orders had already defined what the Crown was required to disclose, yet the deficiencies continued. The Court concluded that no less drastic remedy could reasonably restore procedural fairness.

Source: Tax Court of Canada

Will vs. Trust in Canada

In the latest video, Fraser explains the real difference between a will and a trust in Canada, using a $1 million estate as an example.

The Probate Difference

A will controls how your estate is distributed after death, but some assets may still go through probate. In Ontario, a fully probate-exposed $1 million estate could face about $14,250 in Estate Administration Tax.

@taxmechanic

A will and a trust can both be part of estate planning in Canada, but the real comparison is not simply which one costs less to set up. Th... See more

When a Trust Makes Sense

Assets properly transferred into a trust can avoid probate, while also offering more privacy, continuity, and control over distributions.

But trusts cost more and can create ongoing tax and reporting obligations.

AI Strategy, Automation & Intelligent Systems

Businesses do not need more software. They need better systems. At Tax Mechanic, we help companies use artificial intelligence to reduce manual work, improve accuracy, and make faster, better decisions. Our approach is practical, focused, and built around real business outcomes.

Strong AI depends on strong data. That is why we also help structure, organize, and connect your data so every system performs reliably and delivers measurable value.

The businesses gaining an edge are not the ones talking most about AI. They are the ones applying it with precision.

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