Estimated Sales by CRA
Estimated Sales by CRA: Audit File Selection & Assessment In an attempt to identify unreported revenue, CRA and Revenue Québec may compare a business’ reported revenue to what would be expected given the business’ level of purchases. The analysis is based on industry-specific profit and revenue ratios. In a January 31, 2022 French Court of…
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Auditing Old Tax Returns
Auditing Old Tax Returns: CRA Abilities and Limitations CRA may reassess the tax returns for CCPCs and individuals within three years from the sending of the notice of assessment. Returns for which this three-year period have expired are commonly referred to as being “statute-barred.” However, CRA may reassess a return beyond this period in certain…
Principal Residence Exemption: CRA Project
Principal Residence Exemption: CRA Project In early 2022, CRA began to send out education letters in respect of individuals claiming the principal residence exemption (PRE) in the British Columbia region. Often, regional projects such as this are used as pilots for subsequent national projects. As CRA has indicated that they have a larger overall focus…
Buying and Selling a Home: Budget 2022 Proposals
Buying and Selling a Home: Budget 2022 Proposals The 2022 Federal Budget included several proposals that would significantly change the taxation environment when buying and selling a home. Broadly, the government proposed various incentives for first-time buyers and extended family units in addition to bright-line tests/restrictions for those purchasing homes for profit (e.g home flippers)….
Special Educational Needs – Catch Up Payments
Special Educational Needs – Catch Up Payments You can get financial support to help with the costs of your child’s tutoring, supplies or equipment during the 2022–23 school year. Eligible applicants will receive a one-time payment of: $200 for each student between kindergarten and Grade 12, up to age 18 $250 for each student with special education…
Old Age Security (OAS): Clawback Planning
Old Age Security (OAS): Clawback Planning Individuals who normally receive OAS are occasionally surprised when some OAS is subject to a special tax (commonly referred to as a “clawback”) with their T1 tax filings due to high earnings. In particular, OAS is clawed back at a rate of 15% of adjusted income (AI) received in…
Expanded Access to Tax Credit for teachers
Teachers & Early Childhood Educators: Expanded Access to Tax Credit The eligible educator school supply tax credit is a refundable tax credit that allows teachers and early childhood educators to claim up to $1,000 for amounts expended (for which no allowance or reimbursement was provided) for supplies and some durable goods used to teach or facilitate…
Income requirements to Sponsor Parents & Grandparents
How much income do I need to sponsor my Parents & Grandparents for PR in Year 2022 (LICO 2019 to 2021) You, the sponsor (and your co-signer, if you have one) must prove you have enough income to support all the people you’ll be financially responsible for once you become a sponsor. This includes you….
Corporate Advertising and Promotion Expenses: CRA Increasing Reviews
Corporate Advertising and Promotion Expenses: CRA Increasing Reviews Over the past few years, CRA has taken a targeted approach in reviewing amounts claimed under specific lines (based on the type of claim) of a corporate tax return. Various projects conducted included reviews of professional fees, travel expenses and the purchase of certain vehicles. CRA has…
Falsified Employment Records: The Penalties Can be Large
Falsified Employment Records: The Penalties Can be Large With numerous COVID-19 benefits being based on employment and remuneration levels, the federal government has likely become increasingly concerned with falsified employment records. However, this is not a new issue. In particular, the government already has experience dealing with false records used to increase access to employment…