January Poll

Given the financial stress people are under during the second wave, should governments suspend audit activities and waive penalties and interest in 2021?

Comments


due to the pandemic and social distance   ,    The Govt should suspend Audit and other penalties due to the severe STRESS of this Pandemic.

By stephen Hamid on January 17, 2021


due to the pandemic and social distance   ,    The Govt should suspend Audit and other penalties due to the severe STRESS of this Pandemic.

By stephen Hamid on January 17, 2021


Small unincorpated buiness need the help so badly

By Gerry Campbell on January 15, 2021


Everyone is at their wits end at this time, having to deal with audits and paying penalties and interest is something that we can do without at this time.
Some of the reviews being done end in no changes at all, but have just increased the stress level of the taxpayer.
Errors being made when doing T-4 matching to T-1 returns by the reviewing section cause needless work on both ends. And add to the stress of the taxpayer.
Canadians do not need more stress added to their lives at this time.

By Alice Manderson on January 14, 2021


Audits are being processed with positive results for clients.  For instance the BC Mining Tax Credit has been an issue.  CRA decided the credit was to be included in income and reassessed 2016 and 17 for some of my clients.  Received a letter for one stating everything I requested was approved.  Not income!
CRA is putting auditors in positions that have no experience…probably nothing new but is delaying so many situations.

By Pat Morton on January 14, 2021


Less pressure for audit and review activities would be great, but it only delays them.  They really need to give more time though.  Expecting a response 30 days from the date of the letter, at this time, along with delayed Canada Post deliveries is completely unreasonable.  Give us more time to respond, ease the penalties and interest, and focus the audits and reviews where they make sense.  Quit picking on the little guys just trying to get by.  For now, focus on industries that have flourished during the pandemic.  Auditing a travel agent, hair salon or gym owner would be quite the slap in the face right now.

By Jodi on January 14, 2021


Yes, because people are under enough stress paying for their essential living expenses such as rent and food,etc.  with limited resources.  Once the country is back at full working potential then begin charging interest and penalties for late payments.  Hopefully this can begin with the 2021 tax reporting.

By JOHN FRANK BIRD on January 14, 2021


At least for 2019 and 2020 returns CRA should skip the penalty and reduce the interest rate.

By Marion Menzies on January 13, 2021


Taxes are already exorbitant and unreasonable in Canada and especially if you live in Quebec.  The idea of audits, interest and penalties are necessary for those who abuse what normally should be a reasonable tax system.  However, has anybody ever asked the question as to why Governments must put so much effort into auditing and collecting taxes?  Are there that many dishonest people living in Canada?  As a Croatian Proverb goes: “If you ask for too much at once, you will come home with an empty bag.”  Or “A greedy person and paupers are practically one and the same.” (Swiss Proverb).  Lower the taxes and Governments will be amazed at how honesty becomes a thing.

By Jason Freund on January 13, 2021


I suggest the CRA continue to work as usual and waive penalties at the end of the process if deemed appropriate.  Otherwise, I believe there would be too much room for fraud!!

By Ron McPhail on January 13, 2021


Just go easy. Suspending activities and waiving any penalties/ interest will be used as an excuse by a lot of people who have no interest n being compliant.

By Enzo Galano on January 13, 2021


No, they shouldn’t. If they suspend too long they’ll need more time to do the work and they’ll be extending the period that returns can be statute barred.

This is another question that only looks at one side of the story! Many people have benefited from government stimulus so I’d like to see some statistics about the real magnitude of financial stress.  People on CPP disability only get about $1200 per month and seniors receiving GIS get about $1700 per month so why did the government decide that $2000 monthly support is appropriate irrespective of previous or current earnings? Why did 17 year-olds get $500 weekly on CERB, at a time when they would have been in school, after they only earned $5100 in 2018 and had no previous income? Why is there no claw-back on CERB like there is on EI or OAS?

Given the number of virus deaths in the elderly population the government is now not paying those OAS and CPP pension funds but how much of those savings is going to other seniors or people on CPP?

By Derrick Greetham on January 08, 2021


Audit may be hard when resumed later, but it is hard now to get any missing documents such as moving company receipts, since company workers are at home, and the enforced change from Windows 7 may make things harder to access.  Waiving penalties and interest may not help much if people are in such bad shape they have no tax to pay.

By Virginia Hoover on December 31, 2020


Audit may be hard when resumed later, but it is hard now to get any missing documents such as moving company receipts, since company workers are at home, and the enforced change from Windows 7 may make things harder to access.  Waiving penalties and interest may not help much if people are in such bad shape they have no tax to pay.

By Virginia Hoover on December 31, 2020


In the first place why this $5,000limit?
How will a person survive when he can’t earn up to 5,000? mean to say anyone earn above 5,000 are eligible and others earned less than 5,000 should eat gross and survive!
the limit imposed was meaningless,
In my opinion it should have been a Canadian resident earned income between $0 to 5,000 or $ 0 to personal amount credit level are eligible to apply for this benefit.
The advisors to Government to be blamed.

By RAM(Ramanathan) Chockalingam on December 28, 2020


They misrepresented the amount of 5000, if they were clear those that did not qualify would not have applied. The interest would take years to pay not to mention the principal to pay back. Those that applied barely made 5000 gross. The government gave them more than 10000.00 you do the math with the interest. Picking on the poor is historical, instead of focusing on helping them.

By Patrizia Cappelli on December 23, 2020


Many banks are waiving penalties on mortgages and loans at this time.  That does not mean that interest is being waived as well.  Why shouldn’t the government do the same?
Suspending audit activity does not mean the government can’t resume it at a future date.

By Rosalind Kemp Gleave on December 23, 2020


So many individuals and businesses struggling right now. Waiving penalties and interest would be a step in the right direction.

By Bonnie Allison on December 23, 2020


Many people are struggling to keep their heads above water at this time so penalties and/or interest charges are sometimes more than they can handle.  If the government is trying to help people, they would do this.  They will eventually get any taxes owed to them anyway (for the most part), so they do not lose much by being more compassionate.

By Robert A Litschel on December 23, 2020


Suspend audit activities for now, however only waive penalties & interest for those who have been financially impacted by COVID-19. No audit induced penalties or interest should ever be waived as a result of an audit in which fraud is determined.

By Amanda Zais on December 23, 2020


The media, as is often the case, do not know tax law and are blowing some issues out of proportion to what the issue really is. The various support programs were rolled out with few parameters and some took advantage of that. CRA needs as always to enforce with SOME COMMON SENSE. The common sense part is the tough part for CRA.

By Terry on December 23, 2020


Thanks for asking

By Ed Bahula on December 23, 2020


Especially have a better approach with the CERB repayments.  Very vague & is causing
many people worry over Christmas.
CRA should have been clear about the $5000 amount whether net or gross

By Deborah Bennett on December 23, 2020


Everyone is being hit hard this year, all Business’s are trying their utmost ability to stay afloat. Their only hope is to have less pressure on bills ,interest ,audit procedures at least until we are back to some what normalcy

By SUSAN MACKIE on December 23, 2020


Everyone is being hit hard this year, all Business’s are trying their utmost ability to stay afloat. Their only hope is to have less pressure on bills ,interest ,audit procedures at least until we are back to some what normalcy

By SUSAN MACKIE on December 23, 2020