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5 BULLET FRIDAYS - Tax Mechanic News, Tips, Strategies
Client Testimonial
Tax Mechanic
November 03, 2023
In this edition: What do you know about gifts? / Is CRA going digital? / What can happen if you don’t file taxes?
Bite size tax and finance related information that could save you $$$
What do you know about the Gifts?
In a tangled tale of gifts and taxes in 2011, deposits of $9,000 and $5,000 initially accused of being unreported income were ultimately pardoned as genuine family gestures, prompting a sigh of relief for the taxpayer. Fast forward to 2013, where the taxman found themselves in a dizzying dance over mysterious deposits and a settlement share. With a flick of the judicial wand, a $6,240 deposit shrank to a modest $5,500, leaving everyone questioning the taxman's vision. Curious about navigating your own tax mysteries?
Hey there, Tax Mechanic fam!
We've got an incredible success story to share with you today, straight from Surrey, BC. Our client was hit with a whopping $55,000 tax bill by the CRA.
Things got even tougher when the CRA froze her bank account and took $3,000 from it! But guess what? Tax Mechanic to the rescue!
We dove deep into her finances and discovered something incredible! Her tax returns said she was actually owed a refund of $771.41, not the CRA's demand of $55,000!
With our expertise, we corrected the CRA's errors, and our client received her refund! At Tax Mechanic, we're not just tax experts; we're your financial allies.
If you're facing tax troubles or need financial guidance, reach out to Tax Mechanic.
We're here to help you regain financial stability and peace of mind!
Streamlined CRA Digital Services for Tax Practitioners
In a recent meeting, the Canada Revenue Agency (CRA) unveiled a series of enhancements to its digital services designed to simplify the tax process for practitioners. Here's a concise overview of these crucial changes:
Electronic Payments Over $10,000: The CRA will soon require tax payments over $10,000 to be made electronically, with a grace period for adjustment and education before enforcement.
Business Correspondence - "Digital by Default": Starting May 2025, the CRA will primarily communicate digitally with businesses via the My Business Account portal. Certain organizations and businesses will have the option to "opt-out" and receive paper communications.
Communicating with the CRA: Optional email notifications for businesses will be introduced, enhancing communication. Additionally, a "Connect with us" link in My Account will streamline interactions with the CRA.
Signing Into CRA Portals - Registration and Authentication: A single CRA credential for all digital services, implemented from October 2023, will simplify user access. Enhanced security measures are being implemented to safeguard taxpayer data.
Special Elections and Returns: Several special tax elections and returns can now be filed electronically. New forms are expected to be introduced in February and Spring 2024, with a transition period before mandatory electronic filing.
Underused Housing Tax: The CRA introduced an online tool to determine property eligibility for underused housing tax exemptions. Multiple electronic submission options are available.
New and Upcoming Services: The CRA is launching My Trust Account for authorized trust representatives, providing online access to trust information. Progress tracking for various filings will be expanded. The Submit Documents service will be further improved for convenience.
These changes aim to make the CRA's digital services more efficient and user-friendly for tax practitioners and their clients. For detailed information, you can access the full article here. Stay tuned for these exciting updates that will simplify the tax process.
"Canadian Companies' Tax Dance to Luxembourg: A $120 Billion Mystery"
In a surprising financial tale, Canadian companies have performed some intriguing moves, shifting a staggering $120 billion to Luxembourg, puzzling tax collectors. Researchers uncovered this trend, describing it as a rapid dance that saw a 20% yearly increase, with a massive $20 billion shift in 2021.
These companies expertly maneuvered by shuffling debt between different parts of their business, reducing their taxable income and eluding taxes. Major players like Thomson Reuters, Alimentation Couche-Tard, and Saputo Inc. were involved, but remained elusive when questioned.
The researchers noted that a significant part of these profits came from the food industry, and some companies even received public subsidies while secretly benefiting from their Luxembourg holdings.
The researchers hope Canada will learn from countries like France, Poland, and Denmark, which have taken measures to prevent tax evasion and misuse of public funds. This issue is not just about money but also a complex political matter that governments have been grappling with for years.
In a whimsical twist, the researchers admitted that their findings may only scratch the surface of tax avoidance, leaving authorities baffled and the companies slipping away, leaving a curious nation wondering where its tax dollars have gone.
File your taxes before your account is frozen.
One of our client from Surrey failed to file the taxes and ended up getting her bank account froze. To know how much we saved her and how we helped her click to find out more!