5 BULLET FRIDAYS - Tax Mechanic News, Tips & Strategies

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How the CRA Is Protecting Your Tax Information This Season and What You Should Do Too

Tax season attracts more than refunds. It draws cybercriminals looking for easy targets. The Canada Revenue Agency has stepped up its defenses, but protection only works when Canadians understand how the system safeguards them and where their responsibility begins.

Below is what’s changing, why it matters, and how to stay ahead of fraud.

Why Tax Season Raises the Risk

During filing season, criminals intensify attempts to access CRA accounts to submit fake returns or claim benefits. Personal data is the prize. The CRA now treats cybersecurity as a frontline tax issue, not a back-office concern.

Stronger Logins With Multi-Factor Authentication

Multi-factor authentication is already mandatory for CRA accounts. Every login requires a one-time passcode, not just a password.

Starting February 2026, a backup MFA option will be required. This prevents lockouts and adds resilience if your primary method fails.

Key change to know now: Add a backup authenticator before filing season to avoid delays.

Proactive Account Lockdowns

The CRA actively revokes:

• Compromised user IDs and passwords

• Credentials exposed through third-party breaches

• Accounts left unused for extended periods

This is preventative, not punitive.

Shutting Down Fake CRA Websites

Hundreds of phishing sites were taken down last year. Expect more attempts ahead.

To stay safe:

• Never click links in emails or texts

• Type the address directly into your browser

Your Role in Account Security

The CRA’s systems only work if individuals do their part.

Bold truth: Security failures almost always start with weak personal habits, not broken systems.

Source- CRA

How to Build Systems So Your Business Doesn’t Depend on You

Most business owners say they want leverage. Few structure their company to survive without them. When everything runs through you, growth slows, decisions bottleneck, and value stalls. Systems fix that.

The Core Insight

Ryan Deiss frames it clearly. The more operationally critical you are, the weaker the business becomes. Real value is created when outcomes are repeatable without founder involvement.

Step One: Establish Defaults

Defaults eliminate decision drag and inconsistency.

• How work gets approved

• How issues escalate

• How success is measured

Step Two: Identify Constraints

Every business has limiting factors. Growth comes from removing the true bottleneck, not adding more effort.

Step Three: Map the Process

Process mapping forces precision. If a task can’t be written clearly, it can’t be delegated reliably.

Key insight: If your system requires you to “step in,” it isn’t a system.

Step Four: Build High-Output Teams

Teams should be structured around outcomes, not titles. Accountability follows clarity.

Source: My First Million, Episode 775

Buying a New Home in Ontario? These HST Rebates Can Save You Thousands

Buying a new home is one of the largest financial decisions most Canadians will ever make. Yet many buyers underestimate how HST works and where rebates fit into the picture. Understanding these rules upfront can prevent cash flow surprises and improve your overall budget planning.

Why HST Matters on New Homes

Unlike resale homes, newly built or substantially renovated homes are subject to HST. The good news is that rebates exist to offset part of that cost. The challenge is knowing which rebates apply and when the money actually comes back to you.

The HST New Housing Rebate

This rebate applies to most buyers of new or substantially renovated homes.

• Often credited by the builder at closing

• Reduces the HST you need to finance

• Not guaranteed to be applied automatically

If the builder does not apply it, you may need to pay full HST upfront and recover it later.

First-Time Home Buyer HST Rebate

This rebate is separate and only available to first-time buyers.

• Full HST is paid at closing

• Rebate is claimed directly from the CRA afterward

• Requires strict eligibility and timing

Planning Mistakes to Avoid

• Assuming rebates are automatic

• Underestimating upfront cash needs

• Ignoring eligibility conditions

Important takeaway: Always budget as if you will pay full HST at closing.

The Smart Way to Buy

Clear planning turns complexity into confidence. Knowing how HST rebates work lets you avoid surprises, protect cash flow, and make informed decisions as you step into homeownership.

✨ Contact Genelle Today

A $313,000 Reminder: How One Tax Decision Cost a Montreal Dentist Dearly

Tax enforcement is no longer theoretical. A recent Quebec case shows how unreported income can trigger criminal charges, six-figure penalties, and lasting professional damage. For Canadian professionals and business owners, the takeaway is simple. How income is handled matters just as much as how much is earned.

What the Court Found

In December 2025, a Westmount dentist pleaded guilty to multiple counts of filing false tax returns and tax evasion. The court imposed a fine of $313,262, equal to the full amount of federal tax avoided.

Where Things Went Wrong

The issue centered on professional fees paid by other dentists working in the clinic.

• Fees were paid for space, staff, and equipment

• Some payments were properly deposited and reported

• Others were diverted to a personal account and excluded from tax filings

That distinction turned routine income into criminal exposure.

The Financial Impact

Critical insight: Depositing business income into a personal account does not shield it from the CRA.

CRA Enforcement Is Active

Between 2020 and 2025, courts convicted 106 taxpayers for tax evasion involving more than $39 million. Penalties included fines, jail time, and criminal records.

How to Protect Yourself

• Keep business and personal accounts separate

• Report all income, regardless of payment method

• Address errors early before they escalate

Why This Matters

CRA enforcement is targeted, data-driven, and persistent. Clean reporting is not just compliance. It is risk management for your income, reputation, and long-term financial stability.

Source- CRA

Charitable Donations at Year-End: How to Make Sure Your Tax Credit Counts

December is when many Canadians donate with tax savings in mind, but timing mistakes are common. One small detail can determine whether your donation helps this tax year or gets deferred to the next. This came up clearly in our latest TikTok, where Fraser explains the year-end rules in plain language.

What actually matters

• A donation counts when the gift is made, not when the receipt is issued

• Charitable donations provide a tax credit, not a deduction like an RRSP

• Eligible donations can be carried forward and claimed within five years

• The donation must be made to a registered charity

Key takeaway: Be generous, but be intentional. The tax benefit only works if the timing is right.