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Welcome to Tax Mechanic Insights! 📬

Welcome to Canada: Filing Your First Tax Return

January 28, 2025 Ottawa, Ontario Canada Revenue Agency

📌 Important Information for New Residents

Relocating to Canada? Filing your income tax and benefit return is essential to access the benefits and credits available to you. These payments can provide significant financial support. 💡

🗓️ When You Need to File a Tax Return

Ensure you file a tax return even if you only resided in Canada for part of the year if you:

• 🏦 Have to pay tax

• 💸 Seek a refund

• 📋 Wish to receive benefit and credit payments for yourself or your spouse/common-law partner

Note: The Canadian tax system is based on residency status, not immigration status. If unsure of your residency status, complete Form NR74 to determine it. Submit this form to the Canada Revenue Agency (CRA) promptly for an opinion on your status. 📑

💰 Financial Benefits and Credits

Leverage our Benefits finder to identify eligible benefits and credits, such as:

• GST/HST Credit: 💳 Paid quarterly to individuals and families with low to modest incomes to offset GST/HST costs.

• Canada Carbon Rebate: 🌿 Issued every three months to help eligible individuals and families offset federal pollution pricing costs.

• Canada Child Benefit: 👶 Monthly payments to eligible families to aid with the costs of raising children under 18.

📅 Key Deadlines

• Tax-filing Deadline: 🗓️ April 30, 2025 (for most individuals)

• Self-employed Tax-filing Deadline: 📅 June 16, 2025 (payment due by April 30, 2025)

To avoid delays or interruptions in your benefit and credit payments and to evade late-filing penalties and interest, file your tax return on time. Filing and paying on time also ensures you claim deductions, credits, and expenses to reduce your owed taxes.

🆓 Free Tax Assistance: If you have a modest income and a simple tax situation, you may qualify for free tax return assistance at a tax clinic. If you are self-employed or own a small business, explore the CRA’s Liaison Officer service for tax obligation guidance.

📂 Simplify Tax-filing: Register for direct deposit and file your tax return electronically using NETFILE-certified software. Some software options are free! Filing electronically can lead to a refund within eight business days, while paper returns may take up to eight weeks to process. 🧾

🔎 Post-filing Procedures: After processing your first tax return, you will receive a notice of assessment (NOA) outlining your refund or amount owed. Register for a CRA account to manage your tax affairs, update personal information, and opt for electronic mail. 💻

🛡️ Protect Yourself from Scams: Scammers may attempt to exploit you. Visit our Scams and Fraud page to recognize scam indicators and understand how the CRA will communicate with you. The CRA will never use threatening language. 🚨

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Unveiling Success Secrets with the Billionaire Circle 🏆

Issued By: My First Million

In this electrifying episode, Sam Parr and Shaan Puri dive into their unforgettable 48 hours spent with MrBeast and 11 billionaires in Greenville, NC. Prepare to uncover groundbreaking insights and transformative experiences that can set you on the path to financial success. 🚀💼

📅 Show Notes:

Key Highlights

• Unconventional Strategies: 💡 Fish Where The Fish Swim: Gain insights into unique success strategies that defy the norm.

• Total Immersion: 🍫 Become the Chocolate: Understand the power of full dedication and becoming one with your craft.

• Humble Confidence: 🌟 Non-Obnoxious Confidence: Learn why a quiet confidence can lead to greater achievements than IQ alone.

• Identity & Challenge: 🧠 I Am & 💥 Take Your Billions and Shove It: Discover the importance of knowing yourself and challenging conventional wisdom.

• Health & Memes: 🏋️ Health is the New Status Symbol & 📈 Midwit Meme: See how health and cultural trends influence success.

📋 Tax Debt Resolution & Financing Program

For Tax Debts under $100K

💼 Legal Fee: The Cost of the Buy-down of the Interest Rate to less than 10% + Service Fee (i.e., % of Total Financing Sought)

How the Program Works

📝 Initial Consultation & Assessment

• Free Initial Consultation: Evaluate the client's tax debt situation (individual or business), assess CRA notices, and devise the optimal resolution strategy.

• Eligibility Review for Financing: Collaboration with the Tax Mechanic to assess client eligibility for the 0% interest financing option.

🔍 Engagement & Financing Agreement

1. Service Engagement: Once deemed eligible, the client signs a retainer agreement with the law firm.

2. Financing Application: Assistance provided to the client in completing a financing application with the partner financing company.

3. Immediate Payout: Upon approval, 100% of the legal fees, including the total tax debt amount, is deposited directly into Lawlignment's trust account.

⚖️ Legal and Financial Management

🔧 Comprehensive Tax Debt Resolution Services

• Debt Analysis & Negotiation: Development and execution of a tailored legal strategy (e.g., negotiating installment agreements, filing objections, or exploring offers in compromise).

• Ongoing Legal Representation: Representation of clients in dealings with the CRA, ensuring compliance and favorable outcomes.

💳 Client’s Repayment to Financing Company

This program offers a structured and efficient approach to resolving tax debt, ensuring clients receive comprehensive support from initial consultation to final repayment. By leveraging professional legal and financial management, clients can achieve favorable outcomes and clear their tax debts with confidence. 💼

Thunder Bay Mining Company Director Sentenced for Tax Evasion

January 24, 2025 | Thunder Bay, Ontario | Canada Revenue Agency

📌 Important Announcement:

The Canada Revenue Agency (CRA) announced today that Henry Grant Wetelainen of Thunder Bay, Ontario, was sentenced in the Thunder Bay Courthouse on January 21, 2025. Wetelainen received a conditional sentence of two years less a day and a fine of $128,101. On June 5, 2023, Wetelainen was found guilty of three counts of tax evasion and one count of making false statements on his tax returns. ⚖️

🕵️ Key Findings of the Investigation:

• Company Operations: 1584859 Ontario Inc., directed by Wetelainen, operated in the mining and mineral exploration industry in Thunder Bay.

• Unreported Income: The company failed to file corporate income tax returns for 2009, 2010, and 2011, not reporting $367,261 in taxable income.

• GST/HST Non-compliance: The company did not file GST/HST returns from January 1, 2010, to December 31, 2011, failing to remit $46,132.

• Personal Tax Evasion: Wetelainen did not report $576,601 of personal income from 2009 to 2011, using these funds for personal use and reporting nil income.

🏛️ Court Records and Contributions:

All case-specific information was obtained from court records. The CRA acknowledges the significant contribution of the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) to this investigation. 📄

⚠️ Consequences of Tax Evasion:

Convicted taxpayers must pay the full amount of tax owing, plus related interest and penalties assessed by the CRA.

• Crime and Punishment: Tax evasion includes falsifying records, not reporting income, or inflating expenses, leading to criminal charges, prosecution, fines, jail time, and a criminal record. From April 1, 2019, to March 31, 2024, courts convicted 135 taxpayers for evading over $44 million, resulting in $25.1 million in fines and 58 individuals receiving over 108 years of jail time.

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Understanding Canadian Controlled Private Corporations (CCPC) 🏢

Fraser Discusses CCPC

Overview: A Canadian Controlled Private Corporation (CCPC) is a private entity controlled by Canadian residents. It does not qualify as a CCPC if controlled, directly or indirectly, by a public corporation, non-residents, or a combination of the two. 📄

@taxmechanic

What is CCPC and why do you need to care about it? #tax #SmallBusiness #entrepreneur #tip #ccpc #canada_life🇨🇦 #taxtok #taxtips

Key Benefits of a CCPC

• Small Business Deduction: Reduced corporate income tax on active business income. 💼

• Dividend Tax Credit: Eligible for the small business dividend tax credit. 📈

• Lifetime Capital Gains Exemption (LCGE): Avoid capital gains tax on CCPC share sales using the $800,000+ LCGE. 💰

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