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:

The third annual Financial Literacy month was launched last week by The Honourable Minister of State (Finance) Kevin Sorenson and Lucie Tedesco, the new Commissioner of the Financial Consumer Agency of Canada (FCAC).

The maximum pensionable earnings under the Canada Pension Plan (CPP) for 2014 will increase to $52,500 in 2014, which is an increase from $51,100 in 2013, while the basic exemption remains at the current $3,500 level.

Agathe Côté, Deputy Governor of the Bank of Canada, spoke of one of my favorite subjects – the Promise of Potential – at the CFA Society Winnipeg/Manitoba Chambers of Commerce in Winnipeg on October 29.

Carl Gustafson, a professional engineer (P.Eng.) and a director of Norall Group Contracting Inc., was fined late in October in the Ontario Court of Justice in Thunder Bay in the amount of $84,417 for failing to report $459,174 in income. 

Fight with the neighbor? An ex-partner? There are tax reasons to make up and repair burnt bridges: tax snitching can be nasty. 

CRA issued IT 518 to overview their position with regard to the deductibility of food, beverages and entertainment. Reasonable amounts may of course be deducted, if incurred to earn income from a business or property.