Comments on: More CRA Tax Evasion Convictions

By: Tax Guy

Tax Guy — Fri, 24 Dec 2010 02:25:01 +0000

Sam,
What do you mean by “fees”? Are these government penalties or back taxes? Back taxes cannot be deducted as they are not an expense. Fines cannot be deducted by an individual or business as per s. 67.6 of the Act:

In computing income, no deduction shall be made in respect of any amount that is a fine or penalty (other than a prescribed fine or penalty) imposed under a law of a country or of a political subdivision of a country (including a state, province or territory) by any person or public body that has authority to impose the fine or penalty.

By: Sam

Sam — Thu, 23 Dec 2010 18:36:02 +0000

I may be assessed fees against a company I operated in 5 years ago, and not since. Basically I am be challanged as a de facto director, despite me having nothing to do with the business for 5 years. GST etc claims from the government. If I lose the case, would I am be able to deduct the losses as a director on my personal taxes?

Thanks!

By: Tax Guy

Tax Guy — Sat, 09 Jan 2010 05:25:08 +0000

Residents of Canada must report and pay tax on their worldwide income regardless of the amount and location.

If you have foreign property in excess of $120,000 you must report that you own such property.

By: Lionel

Lionel — Sat, 09 Jan 2010 05:21:14 +0000

Do Canadian tax-residents have to disclose and report any and all foreign financial account(s) at a foreign bank(s) no matter how large or small the amount in the account(s) is/are?

Or so long as the account balance/aggregate values of the accounts never reaches a certain figure, say for example $10,000, under which it Is safely non-reportable to the CRA?

By: Tax Guy

Tax Guy — Sun, 27 Dec 2009 17:19:53 +0000

Honestly I’ve not come across situations where someone has gifted assets to others to avoid seizure of assets by the CRA. However, I would think that this could be undone if the CRA could prove the transfer was to avoid seizure.

By: Jordan

Jordan — Sun, 27 Dec 2009 12:27:28 +0000

As a question of curiosity from your general knowledge or stories you’ve heard of the CRA, I’m wondering if someone owes the CRA a lot of money and they have assets (like a house) which they hide by selling and “giving” the money to a family member or friend does that really offer them any protection? The CRA seems like they have a lot of power and are pretty aggressive to re-coup what’s owed to them, so couldn’t they simply undo any non arms-length transaction to get it back? I would think even trying to hide assets is just additional fraud right?

I’d enjoy reading more articles/posts about the extent to which the CRA gets the people who screw the rest of us tax payers.