Canada Tax News & Updates

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Sham Transaction Doctrine

What is the Sham Transaction Doctrine? The "sham transaction" doctrine is a legal concept that has been created by the courts to apply to circumstances where a taxpayer attempts to disguise a transaction to make it appear to be something…

Image depicting a house party with two officers from the CRA (Canada Revenue Agency) waiting at the door, while inside, a man informing the owner of the presence of the CRA agents - CRA Jeopardy Orders, CRA Collection Powers & Challenges - KR Law Firm - Tax Law Firm in Toronto

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CRA Jeopardy Orders

CRA Collection Powers and Restrictions Pursuant to section 225.1 of the Income Tax Act (“ITA“), the Canada Revenue Agency (“CRA“) can only begin taking action to collect taxes owed to it (including interest and penalties) after…

A meeting scene with individuals seated around a table, while one person stands and presents a real estate investment in the context of audits of registered plan strips (John Scholz) - KR Law Firm - Tax Law Firm in Toronto

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Audits of Registered Plan Strips (John Scholz)

The CRA is auditing taxpayers for “advantages” received from a “registered plan strip” relating to investments made with John Scholz, Northland Capital Inc., and Red Hill Capital Inc. Understanding CRA Audits on Registered Plan…

Man standing and addressing the judge and court clerks in a court room, representing the judicial review of CRA (Canada Revenue Agency) discretionary decisions in the Federal Court - KR Law Firm - Tax Law Firm in Toronto

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Federal Court: Judicial Review of CRA Discretionary Decisions

In Canada, government decision-making bodies have decision-making powers that can significantly affect individuals’ and businesses’ rights and interests. As a result, there is a need to ensure that administrative bodies make their decisions…

A wealthy man standing at his beach house with a representative from the CRA (Canada Revenue Agency) approaching him for a net worth audit - CRA Net Worth Audits - KR Law Firm - Tax Law Firm in Toronto

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CRA Net Worth Audits

Situations where the CRA Performs a Net Worth Audit In situations where the Canada Revenue Agency (“CRA“) suspects that a taxpayer has earned more income than reported on their tax returns, the CRA can perform what is known as a “net…

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Taxpayer Bill of Rights

Powers of the CRA The Minister of National Revenue (“Minister“) is responsible for administering and enforcing Canadian tax laws. In practice, however, the Canada Revenue Agency (“CRA“) performs nearly all of the Minister’s functions…

Couple surrounded by bills and letters at a table, with a representative from the CRA (Canada Revenue Agency) approaching them to discuss and impose Gross Negligence Penalties - KR Law Firm - Tax Law Firm in Toronto

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CRA Gross Negligence Penalties

Gross Negligence Penalties Once the Canada Revenue Agency (“CRA“) audits a taxpayer and comes to the conclusion that the taxpayer made false claims or under-reported their taxes, the CRA can apply additional penalties known as “gross…

Tax

Canada Emergency Wage Subsidy Audits

What is the CEWS Program? The Canada Emergency Wage Subsidy (“CEWS”) is a wage subsidy program provided to qualifying employers who have seen a drop in revenue due to COVID-19. If you are eligible for the CEWS program, you will receive…

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Tax Evasion

What is Tax Evasion Tax evasion is when a taxpayer intentionally evade Canadian tax laws to avoid paying their tax liability. Tax evasion can be done in many ways, for example, by purposely not reporting income, falsifying records, or inflating…

Two men engaged in a conversation, one holding a letter stating 'we are here to collect your assets,' while the other man stands near his house and car, expressing his disbelief at the possibility of his properties being seized due to a two-million-dollar tax debt, illustrating the concept of CRA collection powers - KR Law Firm - Tax Law Firm in Toronto

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CRA Collection Powers

Debts Owed to the CRA Vs. Other Creditors Owing a debt to the Canada Revenue Agency (“CRA“) is not like any other debt. Unlike other creditors, the CRA has powerful and broad powers under the law that it can use to collect its debt owed…

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Taxpayer Relief Program

Interest and Penalties The Canada Revenue Agency (“CRA“) charges taxpayers who fail to pay their tax debts on time daily compounded interest on their outstanding tax debts. The CRA can also charge taxpayers penalties for filing their…

Illustration of a person hesitating at the entrance of an office, while an individual seated at a desk inside encourages them to step forward and resolve their issues anonymously, highlighting the CRA Voluntary Disclosures Program - KR Law Firm - Tax Law Firm in Toronto

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The CRA Voluntary Disclosures Program

The Canada Revenue Agency’s (“CRA“) Voluntary Disclosures Program (“VDP“) is a program administered by the CRA that allows Canadian taxpayers to voluntarily come forward and declare previously undeclared income or to correct past…