5 BULLET FRIDAYS - Tax Mechanic News, Tips & Strategies

Welcome to Tax Mechanic Insights! 📬

🔍 CRA Economic Entity Audits: A 360° Compliance Approach

How the CRA is redefining tax oversight for multi-entity structures
Source: Canada Revenue Agency

When businesses are intertwined through ownership, control, or transactions, the CRA doesn’t audit one — it audits the whole ecosystem. Enter: the Economic Entity Audit, a powerful tool used to assess compliance across related corporations, trusts, partnerships, and individuals as one unified economic unit.

📌 When & Why the CRA Initiates This Audit

📁 What You Must Provide

• Full books & records for all related entities

• Documentation for inter-company transactions

• Electronic access to data in CRA-readable format

📬 After the Audit

• ✅ All clear – No changes needed

• ✏️ Adjustments proposed – 30-day response window

• 🛡️ Disagree? Discuss with the auditor or file an objection

🧠 Tech Behind the Scenes

CRA uses:

• MOTHER: Maps historical links between entities

• BI Redesign: Targets high-risk business groups

Executive Insight:
If you're managing multiple entities, treat your structure like one portfolio. The CRA already does.

→ Need help navigating an audit? We’re ready.

🤖 Cloning Yourself with AI — And Why Incumbents Should Worry

Episode 713: Sam Parr & Shaan Puri with Jason Lemkin
Source: My First Million

In Episode 713, Sam and Shaan sit down with SaaStr founder Jason Lemkin to explore how top founders are using AI to replicate themselves, scale smarter, and disrupt traditional software models.

🔍 6 Power Moves

→ Watch the podcast🎧 to learn how AI-first founders are building faster, smarter, and with unstoppable momentum.

The next wave isn’t coming. It’s already shipping.

🏡 Reverse Mortgages: A Smarter Way to Unlock Home Equity

Designed for Canadians 55+ seeking financial freedom

With rising home values and evolving retirement needs, more homeowners are turning to a modern solution: the reverse mortgage. This innovative product allows those aged 55 and up to convert home equity into tax-free cash — without selling or making monthly payments.

🔍 What Is It?

A reverse mortgage is a loan secured against your home. Instead of paying a lender, the lender pays you — and you keep living in your home. Repayment only occurs when the home is sold, vacated, or the homeowner passes away.

💡 Why It Works

⚠️ Consider Before Committing

• Interest compounds over time

• Reduces estate value for heirs

• Should align with long-term financial goals

👩‍💼 Connect with a Trusted Mortgage Advisor

Genelle George – Mortgage Agent
📞 416-854-7697
📧 [email protected]

Ready to explore your options? Genelle can help you assess whether a reverse mortgage aligns with your lifestyle and long-term goals.

💼 Canada’s 2025 Tax Cut: Strategic Relief for
22M+ Canadians

Lower rates, higher impact — starting July 1, 2025
Source: Department of Finance Canada

Starting mid-2025, the Canadian government will reduce the lowest federal personal income tax rate from 15% to 14%, directly benefiting nearly 22 million taxpayers. This applies to the first $57,375 of taxable income — a move projected to generate over $27 billion in savings over five years.

For most Canadians, this translates into up to $420 in savings per person or $840 per couple by 2026. While all income levels benefit, the design intentionally targets relief toward low- and middle-income earners.

📊 Who Gets What?

🧠 Inclusive by Design

The tax cut was developed using a Gender-Based Analysis Plus (GBA+) lens:

• 52% of beneficiaries are men, and 48% are women.

• Nearly half of all relief goes to those in the lowest tax bracket

• Many non-taxpayers today may benefit in future as income rises

🧾 How You’ll See It

CRA will update tax withholding tables by July 1st, so many will see smaller deductions mid-year. Others will feel the impact during 2025 tax filing in spring 2026.

Takeaway: This isn’t just a rate change — it’s a shift in fiscal focus: toward fairness, simplicity, and middle-class strength.

→ Want a personalized impact breakdown? We can help.

⚖️ CRA Pressure Tactics: When Negotiation Hits a Wall

In a recent Tax Mechanic video, Fraser Simpson shares a real-world case involving a rigid CRA collections officer — underscoring just how difficult even “small” tax negotiations can become.

🔍 Case Snapshot

@taxmechanic

CRA said no? This is what happens when they reject your offer and come for your home. Watch till the end if you've ever dealt with CRA pre... See more

It’s a reminder: when reason fails, strategy matters more than fairness.

→ Fraser breaks it down in his latest video — watch to see how he handles CRA pushback like a pro.