Introduction – What are Statute-Barred Tax Years? The Canadian tax system is based on the principles of self-assessment, which requires that Canadian taxpayers perform their own due diligence and to report their taxable income to the Canada Revenue Agency (“CRA”) for tax assessment. Under subsection 152(1) of the Canadian...
Penalties Canada’s tax statutes contain various penalties that seek to curb non-compliance. A gross-negligence penalty aims to punish a taxpayer whose conduct “involves a high degree of negligence tantamount to intentional acting, an indifference as to whether the law is complied with or not”: Venne v R., 84 DTC...
Background on Directors Liability for Taxes: The Tax Court of Canada has recently decided a case regarding director’s liability for unremitted GST/HST. Generally, a director of a corporation can be held personally liable to CRA for various corporate liabilities such as unremitted GST and HST, as well as unremitted...
Tax Court Settlement Process A taxpayer who proceeds to Tax Court to resolve an ongoing tax dispute will want to consider settling the dispute prior to hearing. A settlement occurs where the taxpayer and Canada Revenue Agency agree to a particular outcome for the ongoing dispute without the involvement...
Requirements for Part XIII Withholding Tax on Canadian Interest to Non-Residents – A Toronto Tax Lawyer Guide Introduction – What is Withholding Tax on Interest Paid to Non Residents Under the Income Tax Act, a Canadian tax resident must pay tax on his or her worldwide income, while non-residents...
Winston Churchill is reputed to have said, “We contend that for a nation to try to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle.” While that calls to mind a humourous impossibility, the truth is that...
Tax law is complex and it is unwise to proceed without proper guidance. The extensive powers granted by the Canadian Income Tax Act to the CRA to collect tax creates additional problems, thus certain limitations are imposed on the CRA Collection abilities. These limitations specify that the CRA does...
Even before a tax debtor has time to react or engage a tax expert his bank accounts can be seized and money taken without a court order. This is because the Canadian Income Tax Act grants extensive powers to the CRA collection officers which often leave the Canadian tax...
Tackling tax problems is difficult enough and to add to that if you are dealing with CRA auditors or CRA tax collectors, professional representation from our team of the best Canadian tax lawyers is an absolute necessity. CRA’s tax auditors and tax collectors not only have different functions but...
Canada’s Tax Act gives sweeping powers to the Canada Revenue Agency and by extension its tax collection officers, to collect the tax debts of taxpayers. In many cases, taxpayers are taken by surprise when their bank accounts are frozen, assets liened or seized and wages garnisheed. When a taxpayer...