Cawston & Associates http://cawstontaxhelp.com Mon, 09 Sep 2019 06:41:02 +0000 en-US hourly 1 https://wordpress.org/?v=4.9.12 Canadian Tax Shelter Scams http://cawstontaxhelp.com/canada-tax-shelter-scams/ Fri, 16 Nov 2018 08:06:15 +0000 http://cawstontaxhelp.com/?p=423 Canadian Tax Shelter Scams We get many calls from people who participated in tax shelters. Their story is usually goes like this: I bought into a tax shelter 4 or 5 years ago. I contributed for one or more years. I put $10,000 into a charitable donation […]

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Canadian Tax Shelter Scams

We get many calls from people who participated in tax shelters. Their story is usually goes like this:

I bought into a tax shelter 4 or 5 years ago. I contributed for one or more years. I put $10,000 into a charitable donation and got a tax-deductible receipt for $100,000. The receipt was used on my tax return giving me a nice refund or reduction in tax owing. The CRA reassessed my tax return 4 years later and disallows the claim. The CRA wants me to pay penalties, interest and tax. I have been scammed. The promoters who sold me the tax scheme want more money to challenge the CRA on the tax scheme that they said was deductible.

It takes about 10 years for these files to go though tax court. During the wait time the debt continues to accumulate interest. The Canada Revenue Agency wins virtually all of these in court. Usually the legal fees that participants pay go to defend the promoters of the scheme.

Don’t listen to anybody who tells you that a tax scheme has been “approved” by the Canada Revenue Agency. If the Canada Revenue Agency has issued a tax shelter number its just an indication that the CRA wants to track it and has yet to make a decision.

If you have purchased one of these schemes or something similar and have not been contacted by the CRA, please give us a call as we can help you save money. If you are just thinking about buying into this type of tax shelter, beware. We have seen lawyers, doctors, chartered accountants and other professionals be caught in this type of tax scam. Remember if it appears to too good to true, it probably is.

The CRA has more information on tax shelters.

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Trudeau and the Canadian Small Business Tax http://cawstontaxhelp.com/canadian-small-business-tax-2017/ Fri, 08 Sep 2017 16:22:32 +0000 http://cawstontaxhelp.com/?p=352 Trudeau and the Canadian Small Business Tax Despite its consultation with Canadians it appears that the Liberal government is moving forward with their proposed tax changes. As tax professionals we are concerned that these changes will reduce the incentives that entrepreneurs have to start or grow their […]

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Trudeau and the Canadian Small Business Tax

Canadian small business tax 2017

Despite its consultation with Canadians it appears that the Liberal government is moving forward with their proposed tax changes. As tax professionals we are concerned that these changes will reduce the incentives that entrepreneurs have to start or grow their small businesses.

We understand that the government is trying to make an employee’s effective tax rate equal to a small business owner’s effective tax rate. However the government is overlooking the fact that a small business owner carries a tremendous amount of risk. Many have to refinance their homes or take out bank loans to operate their business. Often these liabilities require another family member to co-sign. These loans that entrepreneurs take out usually go to meeting the operating expenses including wages of their employees.

These tax planning strategies are designed to allow small business owners to better manage their tax liabilities and reduce their overall risk. This makes it more feasible for them to go into business, support the economy, and hire employees. “Income Sprinkling” to family members also makes it easier for those family members to allow their loved ones to take the risk of starting a business or the personal risk they take by consigning a loan.

As with anything the specific details of these changes are key. We are still waiting for these details.

If you have an opinion on this matter you should take the time to contact your member of parliament.

More on this story can be found at: http://www.cbc.ca/news/politics/trudeau-small-biz-tax-changes-tweaks-1.4277510

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Director’s Liability – CRA Appeal http://cawstontaxhelp.com/directors-liability-calgary-corporate-tax-appeal/ Sun, 26 Mar 2017 20:13:26 +0000 http://cawstontaxhelp.com/?p=324 Director’s Liability Assessment with the Canada Revenue Agency Below is a recent letter from the CRA in response to our appeal on behalf of our client. If you believe you have been erroneously assessed by the Canada Revenue Agency for Director’s Liability or other sections of the […]

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Director’s Liability Assessment with the Canada Revenue Agency

Below is a recent letter from the CRA in response to our appeal on behalf of our client. If you believe you have been erroneously assessed by the Canada Revenue Agency for Director’s Liability or other sections of the tax code then please call us.

directors iability cra appeal

Dear Mr. [name removed] This letter refers to your Notice of Objection dated July 8, 2014 to the income tax director’s liability assessment for $30,653.23 concerning [name removed] (Alberta) Ltd. (the “Corporation”).

Under the authority of subsection 165(3) of the Income Tax Act and having carefully reconsidered the assessment with reference to the information and reasons set forth in your Notices of Objection, the Minister of National Revenue renders the following decision.

Your objection is allowed and the assessment will be reversed. A Notice of Reassessment will follow under separate cover.

The facts and evidence support your representation that you should not be held liable under subsection 227.1 (1) of the Income Tax Act.

Dated at Calgary, this 13th day of March 2017
Minister of National Revenue
Per:
Team leader
Appeals Division
SATSO- Calgary

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Canada Tax Tips 2017 2018 http://cawstontaxhelp.com/canada-tax-2017-2018/ Sun, 26 Mar 2017 18:33:20 +0000 http://cawstontaxhelp.com/?p=321 New CRA Rules and Advice for 2016 2017 Canada Revenue Agency Email and Phone Scams – There are multiple criminal organizations and individuals human-voice and robo calling Canadians impersonating a Canada Revenue Agency agent. These fake agents are requesting money or personal information. If you receive such […]

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New CRA Rules and Advice for 2016 2017

canada tax cra 2016Canada Revenue Agency Email and Phone Scams – There are multiple criminal organizations and individuals human-voice and robo calling Canadians impersonating a Canada Revenue Agency agent. These fake agents are requesting money or personal information. If you receive such an email or phone call, hang up without saying a word and call the call Canada Revenue Agency directly at 800-959-8281 to confirm the authenticity of the call.

Missed Reporting Slips for your personal tax return? – The CRA has a 20 percent assessment policy on the gross unreported income (unfiled or reported T-slips and other income clips) in situations where a taxpayer has not reported income for the second time within a three-year period.

Residence Reporting – Starting with the 2016 tax season, all Canadian homeowners will be required to report the sale of a principal residence on their personal tax return for the year in which the sale occurred. Subject to a late-filing penalty up to $8,000, the Canada Revenue Agency will accept a late-filed principal residence designation.

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Alberta Personal Bankruptcy http://cawstontaxhelp.com/alberta-personal-bankruptcies/ Sun, 26 Mar 2017 17:31:41 +0000 http://cawstontaxhelp.com/?p=318 Alberta Personal Bankruptcy on the Rise To our fellow Albertans: Cawston and Associates Inc. is a family company. Our family was born and raised in Alberta. During the past 40 years in Alberta we have seen our share of the boom and bust cycle related to the […]

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Alberta Personal Bankruptcy on the Rise

bill trevor cawstonTo our fellow Albertans:
Cawston and Associates Inc. is a family company. Our family was born and raised in Alberta. During the past 40 years in Alberta we have seen our share of the boom and bust cycle related to the price of oil and other economic factors. From the National Energy Policy to the economic downturn in 2008 we have shared in the struggles of Albertans.

In the past year we have seen a substantial increase in consultations for clients who are having financial difficulties. These are all good people who have lost their jobs, had their hours cut back, and have got a little (or a lot) behind on their taxes and other bills.

The CBC is now reporting that the Alberta economy might be showing signs of recovery. It is unclear at this point if ordinary Albertan’s will see a positive effect on their bottom line.

The majority of our clients find themselves in tax trouble during a difficult financial time, usually because there is not enough money to pay their taxes and their household bills. When their financial situation starts to improve they become easy targets for the CRA to take legal action. When the CRA is taking action against it becomes impossible to ever get ahead again.
If you or your family is struggling with the CRA during this tough financial times come see our family, I know we can help you.

Read more on the 2017 Alberta Oil Forecast from ATB

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Tax Evasion and Crossing the US Border http://cawstontaxhelp.com/tax-evasion-crossing-us-border/ Sun, 26 Mar 2017 17:24:29 +0000 http://cawstontaxhelp.com/?p=315 Canada Revenue Agency can block tax evaders from crossing the border A recent CBC article points out that tax evaders may find it more difficult to cross the border. This is designed as a deterrent for people participating in off-shore tax havens. However, we have seen cases […]

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Canada Revenue Agency can block tax evaders from crossing the border

canada revenue agency tax evasionA recent CBC article points out that tax evaders may find it more difficult to cross the border. This is designed as a deterrent for people participating in off-shore tax havens. However, we have seen cases where good people get lumped in with tax evaders simply because the Canada Revenue Agency doesn’t fully understand their position. We can help you if you haven’t filed you taxes in a number of years, made an error on your tax returns, or failed to disclose foreign income or property.

Read the CBC article here

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CRA Scam Alert June 2017 http://cawstontaxhelp.com/scam-alert-january-2016/ Fri, 08 Jan 2016 17:17:09 +0000 http://cawstontaxhelp.com/?p=255 CRA Tax Scam Alert There never seems to be a shortage of con artists and scammers looking for a quick buck. The last few years have seen multiple groups operating across Canada as phony CRA agents trying to trick people in to paying non-existent tax penalties. This […]

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CRA Tax Scam Alert

There never seems to be a shortage of con artists and scammers looking for a quick buck. The last few years have seen multiple groups operating across Canada as phony CRA agents trying to trick people in to paying non-existent tax penalties. This past June, a Kelowna news paper covered the story and offered advice on how tax payers could better protect themselves. kelownanow.com/news/…/RCMP_offer_tips_as_CRA_telephone_scam

Beware of individuals posing as Canada Revenue Agency employees.  There has been many reported cases in Canada, and Calgary in particular.  These individuals are very aggressive and lead you to believe that there is a warrant outstanding for your arrest related to back taxes.  They try to scare you into making an immediate payment.

CRA scam fraud alert Calgary tax consultants

If you are unsure record the phone number and contact the CRA at 1-800-959-8281 to verify if that is a legitimate number.

 

The following has been provided by the CRA to help identify these scams:

The CRA:

  • never requests prepaid credit cards;
  • never asks for information about your passport, health card, or driver’s licence;
  • never shares your taxpayer information with another person, unless you have provided the appropriate authorization; and
  • never leaves personal information on your answering machine or asks you to leave a message containing your personal information on an answering machine.

When in doubt, ask yourself the following:

  • Is there a reason that the CRA may be calling? Do I have a tax balance outstanding?
  • Is the requester asking for information I would not include with my tax return?
  • Is the requester asking for information I know the CRA already has on file for me?
  • How did the requester get my email address or telephone number?
  • Am I confident I know who is asking for the information?

 

 
For more information visit:

http://www.cra-arc.gc.ca/nwsrm/lrts/2015/l150610-eng.html

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Alberta Government Bill 6 and the Family Farm http://cawstontaxhelp.com/alberta-government-bill-6-family-farm/ Tue, 08 Dec 2015 21:53:07 +0000 http://cawstontaxhelp.com/?p=239 Alberta Government Bill 6 and the Family Farm Our Firm believes that Bill 6 will pass.  The provincial government has done a poor job in explaining the most crucial details in this Bill.   We believe that farmers care deeply for all the individuals, paid or otherwise, […]

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Alberta Government Bill 6 and the Family Farm

Our Firm believes that Bill 6 will pass.  The provincial government has done a poor job in explaining the most crucial details in this Bill.   We believe that farmers care deeply for all the individuals, paid or otherwise, that work hard to provide food for all Albertans.  In most cases farmers have existing insurance that exceeds WCB and actually pays out claims to injured workers.

We believe that farmers have the right to reorganize their affairs in an effort to try and protect their assets from onerous fines that could be assessed by WCB.

These fines and penalties do not go towards injured workers but instead are paid right back into WCB.  We strongly suggest that any farmer with concerns should get professional advice to help review their options

 

Call us today: 403-251-5925

Alberta Bill 6 Farmers Solution

This photo was from an Ontario farm. Farmer’s across Canada, and today in Alberta, are seeing their lives interfered with by our government. For Bill 6, there may be a solution that helps farmers avoid some or many of its points. If the Bill passes we will update this page.

 

  • If a farmer creates another legal entity to pay the non family farm workers does that protect the farm assets?
  • In the case of a family farm that is not incorporated is WCB a secured creditor in a bankruptcy action or does the farm exemption apply?

Please seek professional advice.

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Natural Person Tax Schemes in Canada http://cawstontaxhelp.com/natural-person-tax-schemes-canada/ Thu, 30 Oct 2014 13:23:29 +0000 http://cawstontaxhelp.com/?p=196 Natural Person / No Tax / Detax / Tax Schemes In our industry we call these people tax protestors. Typically they can be found making arguments like “I’m not a person as defined by the Income Tax Act and therefore I am not subject to taxes”. These […]

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Natural Person / No Tax / Detax / Tax Schemes

In our industry we call these people tax protestors. Typically they can be found making arguments like “I’m not a person as defined by the Income Tax Act and therefore I am not subject to taxes”. These arguments have been routinely and consistently rejected by the courts.

Prior to 2012 Cawston and Associates rarely came into contact with these people and if we did we would do one of two things:

  1. Help them to become compliant with all of their tax obligations
  2. Send them on their way

Calgary Tax LawyersIn the past two years we are seeing a scary trend where these ideas are being sold as “CRA Approved” financial planning strategies. Typically targeted at seniors who had their retirement plans devastated in the 2008 economic downturn.

The promoters of these schemes will typically guarantee you a refund of all or most of the tax you have paid in recent years. For this services they will take a “small percentage” of your refund, and only when you have received it do you have to pay. Usually in a few weeks this refund check comes from the Canada Revenue Agency, the promoter takes their fee and you get the balance.

Does this seem too good to be true, that’s because it is.

How your trouble with the CRA begins

To get this refund the promoters will send a fabricated T1-Adjustment on your behalf to the CRA claiming that you owned a business that incurred a large loss and that you are in fact entitled to a refund. These adjustments are typically processed by CRA’s computer system who issues the refund but flags the file for review at a later date when a person is available to look at it. When the file is eventually in the hands of a CRA employee (usually 6 months – 2 years) they can immediately tell that you never owned a failing business and that you were never entitled to the refund. This leads to three things:

  1. You must repay the refund you received
  2. You must pay a large penalty
  3. You must pay the interest on both the refund and penalty

Usually the final tax bill is about four times the amount of the original refund received. The sad truth is that many of these people who participate in these schemes end up in bankruptcy.

Regardless of age or circumstance the Canada Revenue Agency is EXTEREMLY UNSYMPATHTIC toward participants in these schemes. An application to have penalties and interest removed under the taxpayer relief provision is at best a hope shot. The reason for this is because at its core participants have instructed someone to commit tax evasion on their behalf by falsely amending their tax returns to obtain a refund they were never entitled to. In most cases participants are not even aware that any of this has happened.

If you have participated in one of these schemes and have not been contacted by CRA you may be in time to file a Voluntary Disclosure to protect yourself from penalties and prosecution.

If you just want to know what your options are please give us a call 403-251-5925. Don’t wait until it is too late.

Here is what CRA has to say on the issue:
http://www.cra-arc.gc.ca/gncy/lrt/txprtstrs-eng.html

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CRA PROJECT ALERT – Restaurant Industry http://cawstontaxhelp.com/calgary-restaurant-cra-audit/ Tue, 14 Oct 2014 18:05:40 +0000 http://cawstontaxhelp.com/?p=182 Calgary Restaurants May Face More CRA Audits The CRA currently has a project focusing on cash driven restaurants particularly those in the Asian community.  Those restaurants that pay cash for their supplies and food product are at an even higher risk of being selected for an audit. […]

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Calgary Restaurants May Face More CRA Audits

The CRA currently has a project focusing on cash driven restaurants particularly those in the Asian community.  Those restaurants that pay cash for their supplies and food product are at an even higher risk of being selected for an audit.

If you are a restaurant owner who is being audited or are concerned that you might be selected for an audit please call us ASAP for your Free Confidential Consultation.

1-403-251-5925

cra restaurant audits canada

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