|
Newsletters
>
It
may not illegal, (yet) but is it right?
April 28, 2025
Morals, ethics, these days it's all about doing
the right thing. Or is it? CGA's are not allowed to
charge a % of the refund unless it's reviewing work
already done. Other people can do whatever they like as
long as you are willing to pay. But when you pay, make
sure you are protected in case things turn around and
you are audited and CRA wants that refund back. Will
those operators have left town with 60% of your refund,
never to be seen again?
I have heard that
some very senior levels of government, both federal and
some provincial gov'ts are very concerned that families
are being taken advantage of by very shrewd
operators.
These operators are aggressively
contacting families to explain that the disability tax
credit may be transferrable to family who support family
members with a disability. All you have to do is say
that you buy groceries, pay for shelter or clothing or
medical. See IT 513 Personal Tax Credits Appendix for
examples of what this really means.
For a %,
a very steep % I will add, these operators will assist
the family with the documentation of a claim. Since the
tax refund is about $1,400 a year and you can go back
for 10 years under fairness, these families stand to
gain $14,000 (minimum if enough tax was paid). The
operators will claim from 30% to 60%.
What they
don't tell you:
Those tax returns beyond the statute
barred 3 year period are now open to audit for a further
3 years.
If you haven't filed your return
correctly for any of those years or you have opened up
multiple persons returns in order to effect the claim,
all those years for all those people are once again
subject to audit.
I've been doing this
service for 15 years for an hourly fee. The fee has
never been more than even the lowest 30%. The service I
provide involves stringent review of the returns,
including complete investment accounting, RSP
contributions reconciliation, additional child care
expense claims because the limit increases, additional
medical expense claims for attendant care not previously
claimable and shifting medical expenses to disability
supports which can be very beneficial if the person with
the disability is employed. There are times when people
decide it just isn't worth making the claim at all
because they haven't paid tax when they should have and
they have no intention of opening those years up to
scrutiny.
None of this would be caught by
these people because they wouldn't take the time and
effort to do this work. They are in it for a quick buck.
For example, they aren't likely to catch
capital losses not claimed that carry forward till you
die, RSP contributions not claimed that would further
reduce taxes, and on the other side, rental property
income from suites that meant additional income or
deemed proceeds on a shares rolled to an RSP. Those are
just a few examples.
I've also been able to
help people whose claims were denied because the switch
had not been set to the right person to claim the
transfer and that switch has to be flipped each year
there is a change in the transfer to another person. The
claim can also be split.
If you are one of
the people, this is notice that there are people who are
extremely unhappy and actively looking to find ways to
shut down such aggressive behaviour. I've heard that
some people are being solicited to claim for their
family when they really don't support them.
I also heard today that someone thinks you
can claim on Line 331 for medical expenses when you
didn't pay for them. That is NOT the case. You may be
able to transfer the DTC if you can prove support, but
that does not include a transfer of medical expenses
paid by that person to your return.
If you
are a person considering hiring one of these people
because it seems like it's good to be true, it is.
Here's what to do:
Please find a CGA in
your area who charges by the hour and ask for a thorough
review of your taxes. Yes, it may cost you $1,500 to
$2,000 to review all 10 years for you, your spouse and
children or parents, grandparents, but that's still way
less than $4,200 - $8,400 these shysters are shilling
from the pockets of persons with disabilities and the
families who support them.
If you want an
online review by telephone using GoToMeeting to view
your computer with your accountant in the room, I'd be
happy to charge an hourly fee to give you some feedback
based on what I've learned.
Disclaimer:
Eileen Reppenhagen CGA does
not research or endorse any
product or service appearing in ads
posted on this site.
Please
do NOT rely on or use the
information on this website as a
basis for a course of action without
obtaining appropriate professional
advice
.
Disclaimer: All
Apple®, Windows Mobile®, and
Android® trademarks remain
the property of their
respective holders, and are
used only to describe the
products being provided by
The App Code. Any usage of
the above-mentioned marks
anywhere on The App Code
website in no way indicates
any relationship,
endorsement, or affiliation
with the holders of said
trademarks.
All Intuit®, QuickBooks®
Software,Quicken® Software and Profile®
Software trademarks remain the property
of their respective holders, and are
used only to describe the products
discussed on this website.. Any usage of
the above-mentioned marks anywhere in
this website in no way indicates any
relationship, endorsement, or
affiliation with the holders of said
trademarks other than specifically
stated, for example, Certified
QuickBooks ProAdvisor.
|
|
|
