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Canada’s Tax Authority Under Scrutiny

When Service Standards Fail the Public

As the 2025 tax season approaches, frustration with the Canada Revenue Agency is intensifying. Taxpayers across the country report extended delays in correcting errors, resolving disputes, and issuing refunds. The core complaint is simple yet powerful: if citizens face strict penalties for delays, should the CRA not be held to comparable standards?

The Cost of Administrative Backlogs

Consider the case of Bill Bisson of Nova Scotia. A disputed $3,471 penalty, allegedly caused by the CRA duplicating an income slip, has remained unresolved for more than ten months. Meanwhile, interest has pushed the balance to $3,836.

The agency’s stated service standard for resolving such cases is six months. Current delays stretch to twelve months or longer.

Reported Systemic Pressures

The CRA attributes delays to rising demand and program complexity. The Union of Taxation Employees argues that workforce reductions have compounded service deterioration.

Disability Tax Credit Delays

Christine Giles of Halifax waited more than seven months for retroactive disability tax credit adjustments. The funds are critical for her daughter’s medical needs. Shortly after media coverage, the CRA indicated payment of $32,000 would be issued within weeks.

The episode raises a broader governance question: does accountability depend on public exposure?

In taxation, precision and timeliness are not optional. They are foundational.

Source- CBC News

The Rise of the One Person Startup

How Indie Builders Are Rewriting the Entrepreneurial Playbook

In Episode 800, Sam Parr and Shaan Puri dissect the mindset and mechanics behind today’s most successful solo founders. The conversation ranges from the mythology of Think and Grow Rich to the operational discipline of modern indie hackers. The throughline is unmistakable: leverage has replaced labor.

From Guru Culture to Real Builders

The episode contrasts spectacle driven “expert” branding with founders who build durable value.

The discussion questions what makes a guru legitimate and examines high profile figures with scrutiny. Credibility, the hosts argue, compounds through proof of work, not performance.

The Indie Hacker Advantage

Profiles such as Pieter Levels and Christina Cacioppo illustrate a new model:

• Tiny teams or solo operators

• Software as leverage

• Global distribution from day one

• Profitability without venture capital

Source- MyFirstMillion

Borrowing Power Is Not About Income Alone

What Lenders Actually Evaluate Before Approving Your Mortgage

Most buyers begin with a simple assumption: My income determines how much I can borrow.

In reality, lenders assess risk, not salary. Your borrowing capacity is a reflection of your entire financial profile, not just your paycheque.

The Three Pillars of Mortgage Qualification

1. Debt Service Ratios

These ratios are foundational to every mortgage decision:

If these ratios exceed lender guidelines, your maximum mortgage shrinks, even with strong income.

2. Credit Profile

Your credit score is a performance record of how you manage debt.

Lenders evaluate:

• Payment history consistency

• Credit utilization levels

• Frequency of new borrowing

High balances or late payments increase perceived risk and may reduce both approval size and interest rate competitiveness.

3. Cash Flow Discipline

Lenders analyze recurring obligations to determine how much income you actually retain.

Common overlooked commitments include:

• Subscription services

• Vehicle leases or financing

• Personal loans and credit lines

• Buy now pay later plans

Individually minor. Collectively significant.

Strategic Advantage: Prepare Before You Apply

Before submitting an application:

• Track spending for 60 to 90 days

• Reduce revolving debt balances

• Eliminate unnecessary monthly commitments

• Avoid new credit inquiries

Small adjustments can translate into thousands in additional borrowing power.

✨ Contact Genelle Today

Ratti v. The King signals a broader reading of “qualifying revenue”

The Tax Court of Canada has allowed Paul Ratti’s appeal after the CRA denied his Canada Emergency Wage Subsidy (CEWS) claims for Periods 1 to 5 (March 15 to August 1, 2020). The decision matters because it clarifies who can meet the CEWS revenue-decline test and what types of payments can count.

Ratti, a physician, sought CEWS in respect of wages paid to a domestic worker (childcare and cleaning). The CRA denied the claim on two fronts: it argued Ratti had no “qualifying revenue” and that CEWS should not subsidize personal expenses. The Court rejected both positions.

What the Court actually held

Why it matters

This ruling undercuts a narrow, “business-only” framing of CEWS and anchors interpretation in the statutory text. For practitioners, the operational takeaway is clear: employment income can satisfy the qualifying revenue analysis, and “personal” context alone is not a legislated bar.

Source- Ratti v. The King, Tax Court of Canada, 2026 TCC 37 (Feb 23, 2026)

Tax Mechanic Win: From $63,000 CRA Reassessment to Strategic Resolution

A self employed client approached us after receiving a CRA reassessment claiming she owed $63,000. Collections calls followed. Legal action was implied. She was preparing to borrow money to pay what she believed was a final liability.

It was not final. It was inaccurate.

CRA assessments reflect what is filed. When expenses lack documentation, mileage is not tracked, or GST filings do not reconcile, balances can escalate quickly. In those cases, CRA may estimate, and estimates rarely favor the taxpayer.

@taxmechanic

The C R A said she owed $63,000. Collections called. Legal warnings followed. We reviewed the file and corrected the reporting. The assess... See more

What Tax Mechanic Identified

Our review uncovered:

• Legitimate expenses disallowed due to missing support

• Untracked vehicle mileage

• GST reporting misaligned with revenue

We reconstructed records, recalculated deductions under CRA guidelines, reconciled GST discrepancies, and submitted complete documentation.

The Result

This was achieved through documentation, compliance, and correct application of tax law.

Billionaire investors just set 2 all-time records. An asset class most investors never even considered.

How have 70,679 everyday investors joined in on the billionaire’s asset class?

A Klimt painting sold for $236 million—the most expensive modern artwork ever sold at auction.

A Kahlo broke the auction record for a female artist at $54 million.

Obvious outliers, sure, but the 2025 fall auction season signaled the postwar and contemporary art market could be entering a bull run.

Why?

1. Outpaced the S&P 500 overall with low correlation since ‘95*

2. Can trade in any global currency 

3. Natural scarcity

Of course, who can afford to spend millions on a painting, right?

But now it’s easy to fractionally invest in art by legends like Banksy and more, thanks to Masterworks.

They acquire it, securitize it, offer shares, and eventually look to sell it.

Net annualized returns like 14.6%, 17.6%, and 17.8% for works held over a year.

See why members have allocated $1.3 billion across 500+ works:

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_{*According to Masterworks data.  Investing involves risk. Past performance not indicative of future returns. See important disclosures at masterworks.com/cd.}