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:

Previously announced changes that will be implemented this year affect auto expense deductions, labour-sponsored venture capital coporations, and GST/HST exemptions for hospital parking.

As critical as it is to understand what income is taxable in order to avoid expensive penalties, it is just as important to know what income is tax exempt.

I pay monthly for an options trading service that gives me options trade ideas that I execute in my non-registered account. Can I put the total annual cost of the service as an investment cost on my tax return?

The new Registration of Tax Preparers Program, proposed to come into effect in two years, will keep track of errors associated with a particular registrant in an effort of improve compliance. CRA is seeking input on this change in its relationship with professionals.

The Canada Revenue Agency (CRA) recently released a new booklet that explains how to take business deductions from the income of a daycare. It’s an important issue for those who work taking care of children from their personal home as opposed to those who work taking care of children in the home of the parents.

In the recently decided case of Mallon v. MNR, the Tax Court of Canada provided further insight into the determination of the status of relationships: employee or independent contractor under the Income Tax Act (the Act).