No More Sworn Testimony, But Audits Are Still Stress Inducing

“That” Phrase: it’s one no taxpayer wants to hear – digitally or otherwise. “You’re being audited.” If you’ve had to deliver that news you’ll know that the reaction can range from indignity to shock to panic. Based on the latest piece of legislation before Parliament, you might have to tell more of your clients to buckle up, it’s going to be a bumpy ride. CRA will now have greater powers. Consider this:

Have the CRA’s service standards improved? Reports from tax professionals and their clients show progress this tax season. However, in light of increased audit activity, diligence and thorough documentation remain necessary - as this story from the field demonstrates – or you risk major financial consequences.

Stay tuned to Knowledge Bureau Report next week as we decipher the controversial Ontario Provincial Budget.  A pre-election budget, it has already been pre-empted with a series of goodies and promises:

Are you comfortable with your level of tax knowledge? If not, you’re not alone; most Canadians admit that they don’t know enough, but still prepare their own taxes. Educate yourself this tax season to receive a larger refund, and arm yourself against time-consuming, expensive audits.

What did Budget 2018 cover that tax and financial advisors need to know now? What did it fail to address? Dr. Michael Graham weighs in on what we might anticipate in cross-border trade, U.S. tax reforms, the implications of Budget 2018 on small businesses in Canada.

It’s always nice to share good news on the first week of spring: an important new benefit for veterans takes effect on April 1, 2018.  First announced in the 2017 federal budget, the new Veterans’ Education and Training Benefit is part of the $133.9 million earmarked over six years to help veterans achieve post-military employment and position them to be more competitive in the workforce. But is it taxable?

If you are a post-secondary student, or a supporting parent or spouse of one, and are looking for the monthly education amount on the 2017 federal tax return, you may be a bit confused; it’s gone, but not out completely.