5 BULLET FRIDAYS - Tax Mechanic News, Tips & Strategies

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When Doing the Right Thing Still Delays Your Tax Refund

One taxpayer's experience highlights a broader service challenge at the CRA.

A Thunder Bay resident returned a $24,274 tax refund after recognizing it had been deposited into his account by mistake before he had even filed his return. More than a year later, he says he is still waiting to receive over $3,300 in legitimate tax refunds and GST/HST credits, while also remaining locked out of his CRA account.

The case reflects broader concerns about CRA service levels. Canada's Taxpayers' Ombudsperson recently reported a 27% increase in complaints, with more than 3,500 filed during the 2025-26 fiscal year. The report also highlighted lengthy processing delays and ongoing challenges in resolving taxpayer issues.

The Union of Taxation Employees says staffing shortages remain concentrated in tax processing centres, even after additional hiring focused on call centres. While standard refunds typically arrive within eight weeks, adjustment requests can now take up to 50 weeks.

Source- CBC News

If You Were Starting From $0, Start With the Right Market

Mark Pincus argues that choosing the right opportunity matters more than having the perfect idea.

In a conversation with My First Million, Zynga founder Mark Pincus explains that exceptional outcomes often come from positioning yourself where powerful trends already exist. Instead of chasing every new opportunity, focus on identifying long-term market shifts, recognizing repeatable patterns, and building in industries with expanding demand. He also emphasizes balancing proven frameworks with personal judgment, while regularly reflecting on whether your work aligns with the life you want to build.

Mortgage Approvals Are Becoming More Selective

Preparation is becoming just as important as qualification.

The mortgage lending environment is becoming more cautious. Many lenders are tightening their approval guidelines, requesting additional documentation, and taking a closer look at borrowers' income, assets, employment, and credit history before making lending decisions.

This does not mean financing is becoming unavailable. Qualified borrowers continue to receive mortgage approvals every day. The difference is that a well-prepared application now plays a larger role in the approval process.

Whether you're buying your first home, renewing your mortgage, refinancing, or exploring your options, having the right strategy and a complete application can help make the process more efficient.

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If you’re a medical professional thinking about buying, explore what may be possible based on your future income, not just today’s numbers.

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Tax Court Keeps Family Property Transactions in Play

Past real estate activity may remain relevant when determining whether a home sale was commercial.

The Tax Court of Canada has allowed the CRA to continue relying on a family’s broader property history in three GST/HST appeals involving newly constructed Toronto homes.

The taxpayers argued that each property was a personal residence and that other family members, transactions, finances, and construction activities were irrelevant. The CRA alleges the family worked together to acquire, rebuild, and sell multiple properties as profit-making ventures.

Justice Jenna Clark refused to strike those allegations, finding they could help establish intention, frequency, motive, and whether the taxpayers were “builders” under the Excise Tax Act.

The ruling does not decide whether GST/HST is ultimately payable. It confirms that repeated transactions and related family activity may be examined at trial when determining whether property sales were personal or commercial.

Source: Barati v. The King, 2026 TCC 129

U.S. ETFs Can Still Lose Tax Inside a TFSA

The account is tax-free in Canada, but not fully protected from U.S. withholding tax.

Fraser Simpson explained in his latest video that holding U.S.-listed ETFs such as VOO, SPY, or QQQ inside a TFSA can create a hidden tax drag.

@taxmechanic

Holding U.S. ETFs like VOO, SPY, or QQQ in your TFSA doesn't always mean every dollar of your return is tax-free. U.S. dividend withholdin... See more

When these funds pay dividends, the IRS generally withholds 15% before the money reaches your account. A $100 dividend becomes about $85, and that withholding is usually not recoverable inside a TFSA.

Capital growth remains tax-free in the TFSA. The issue is dividend income and choosing the most tax-efficient account.

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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Ready to build smarter systems and improve efficiency? Connect with our team today: https://taxmechanic.ca