Other Common Tax Issues
At Cawston and Associates we handle many other tax issues including
– Restaurant industry gratuities
– T4 disputes
– Self Employed versus Employed rulings
– Incorrect Assessments
– Tax Return Adjustments
We have designed this website to be easy to navigate and to give you information as clearly as possible. It was therefore necessary to omit some of the less common situations that business owners find themselves struggling with. If you have an issue not listed on this site, please call us at 403-251-5925.
Bill Cawston discusses CRA late filing penalties
When I was the Chief of Taxroll at the Department of National Revenue in the 70s, a taxpayer who was a non-filer came to see me. One of the Chief of Taxroll jobs was to ensure that people filed their tax returns. This was in a time when civil servants provided a service to taxpayers. This gentleman had not filed his tax returns for several years. He had rental properties that were unknown to the taxing authority at the time. I helped this man prepare his unfiled returns. When we prepared his outstanding returns, he had refunds for all the years. Unfortunately, some of the refund were statute barred.
This gentleman told me that during his life as a result of not filing his tax returns, he had lost his wife and family, had a nervous break down and almost died of a heart attack. This man was in tears with me in my office.
CRA is always finding new ways and projects to identify non-filers. Just because you are unable to pay CRA in full is not a reason to not file. There are many ways to deal with the amount owing. By not filing you incur late filing penalties and arrears interest which increases the amount you owe them. Penalties can be as much as 50% of the tax owing. Sometimes penalties can be removed under the Taxpayer Relief program.
Our firm specializes in the preparation of unfiled tax returns. In many cases records are no longer available. We help you file a tax return that meets the standard that is used by the CRA when they prepare tax returns. We use information slips from CRA, bank statements if available, or a net worth method similar to what CRA uses when they raise an assessment under Subsection 152(7) of the Income Tax Act.
We will help you make a payment arrangement with CRA or help you with other alternatives to provide you with relief.
Please come and talk confidentially to plan a way to move forward and put your mind at ease.
Bill has been associated with the tax business since 1970.