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Newsletters>
Today's CRA/CGA liaison meeting report
February 3, 2010
If you signed up for this newsletter and aren't getting it, bear with us, the host, www.builderset.com is working out the glitch. When you try to sign up, you should receive an email responder asking you to verify your signup. If you don't, do sign up again in a week or two as by then it should be fixed. I hope... and now for the news...
A brand new outreach activity
CanRev is combining education with possible future enforcement action should taxpayers not initiate activity to self-review and adjust their filing for past and future years.
Apparently thousands of taxpayers can expect an outreach letter in the next month before tax time. This is a self-review initiative. The wording of the letters is being released to CGAs in the next week.
The outreach is to educate and to encourage compliance. It’s based on risk assessment, for example, if your claims for certain line items, especially those on rental, employment or self-employment forms are outside the norm for the population, taxpayers may find one of these thousands of letters in the mail box.
There are two kinds of letters, a gentle one, and a more severe one very likely intended to lead to audit action if the taxpayer continues to file and doesn’t adjust for prior years. This is not an audit action and taxpayers will be able to file a voluntary disclosure if they meet the criteria.
The top 5 Corporate tax schedules that are not accurate:
Schedule 3 Dividends paid/received not reported correctly
Schedule 8 CCA schedules not completed correctly
Schedule 10 CEC schedules not completed correctly
Schedule 23 Associated CCPCs, taxable income and business limits not correlating
Schedule 100 Balance Sheets that don’t balance
Ongoing initiatives:
Real estate condo flips
Trucking companies
Underground economy
Trusts
Individual outreach visits
Community visits
New initiatives:
Automotive
Questionable business losses
Land sub-division
Under trusts issues identified:
Deducting trustee fees and investment counsel fees not related to earning of income
Splitting income to avoid tax, Kiddie tax
Multiplication of capital gains exemptions
Settling multiple trusts to lower provincial taxes
Allocations to minor beneficiaries which are not paid or payable
Non compliance with attribution rules
Eileen Reppenhagen CGA does not research or endorse any product or service appearing in ads on this site. Before making any major financial decision(s) you should consult a qualified professional.
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