Unreported PayPal Business Income

 

Recent news alerted all Canadian online business owners that their PayPal Business Accounts will be handed over to the CRA. This will have serious tax consequences if they have Unreported PayPal Business Income. This news is a result of the Canada Revenue Agency (CRA) moving forward to aggressively address non-compliance specifically unreported income or underground economy.

This news sparked wide spread of panic and fear amongst previous calm and orderly online Canadian business community. The reasons are obvious:

The disclosed files could allow the CRA to identify people who have Unreported PayPal Business Income meaning that had business income from PayPal that were either never reported or under-reported. Further more,  for those online businesses with more than $30,000 in business revenue over 12 months, which means they should be registered to collect and remit the GST/HST.

This disclosure also may identify people or corporations who owe corporate or personal income taxes. If caught Unreported PayPal Business Income, they will have to pay the tax, plus penalties and interest. If the tax avoidance is deliberate, it could be considered tax evasion and result in a criminal charge.

 

Unreported PayPal Business Income 911

 

Unreported income with Unreported PayPal Business Income is regarded as tax evasion which can result in a range of civil or criminal penalties. Do not allow this mistake to become a crime that cannot be retracted, act now before CRA sends you a notice!

You need to quickly come to us before CRA initiates any action against you for Unreported PayPal Business Income.  As soon as CRA initiates the contact, then it is too late. It could be one letter in the mail, one phone call, one personal visit, etc.

The CRA can initiate criminal charges against individuals and businesses that are suspected to intentionally evade taxes for their Unreported PayPal Business Income. A conviction in such cases usually results in a fine of up to two hundred percent of the tax evaded or imprisonment of up to five years.

If you have done similar maneuver in your taxes with Unreported PayPal Business Income, then you need to seek independent and professional advice from reputable tax firm that specialized in tax crisis relief!

If you have Unreported PayPal Business Income, then you cannot afford to wait any longer! Do something to resolve your tax problems TODAY!

We have helped clients in reducing their tax damage and negotiated excellent settlement for them. Do you need protection services for Unreported PayPal Business Income outside Canada? We have helped Canadians from all over the world to repair the damage caused by their Canadian tax problems.

Our initial consultation is FREE and CONFIDENTIAL. You will get comprehensive analysis of your tax problems and recommended solutions in the first meeting. Then you can decide what to do from there.

Tax Audit Help, Tax Debt, Tax Appeal, Tax objection, Audit Help Toronto

Getting the Best Tax Audit Help

Getting the Best Tax Audit Help

No one is going to be happy when they hear that they are subject to tax audits, but knowing that there are people available to offer tax audit help will provide some comfort. It is easy to make mistakes and this can lead to issues with the CRA so making sure that you have all the information in place and the forms are correctly filled in will make life a lot easier.

Paying for tax audit help may not be something that you want to do but when the cost of this is considered against the penalties that the CRA can levy then it is clearly the sensible option. It can be soul destroying trying to work out what you need to do when you are about to be audited and simply having someone to talk to and get advice from can make the world of difference. Tax audit help is not just a matter of working around the law but also about making sure it is a gentle process – or as gentle as possible.

When you are being audited, you are bound to be stressed and you will be aware that the people carrying out the audit will not be looking for ways to save you money. They will want to make sure that they are able to come to a figure that means you pay as much as possible within the law. Tax audit help will make the figure as low as possible for you, but again it has to be within the law.

When you have tax audit help there will be very few times when you have to deal with the auditors since the responsibility can be passed on to a tax professional. It will leave you free to get on with your life, and carry on with your job. This will always be important, but even more so if you are running your own business.

The professionals will know the best ways to deal with an auditor and will be able to deal with them calmly. They will take the tax audit help they are giving you seriously, and will be able to stay calm and focused when faced with decisions or suggestions they don’t agree with. Their calmness will make the process quicker and much more pleasant.

Just because you have tax audit help, it does not mean that you can avoid the auditors altogether. They may want additional information and it may have to be in writing. The tax professionals helping you will be able to assist in drafting the reply so as it is both accurate and in your best interest. All your questions will be answered and you will be helped to understand why the specific questions are being asked. It would be best to avoid a tax audit altogether, but if it cannot be avoided, do not go into it without tax audit help.

Can CRA Garnishments Be Avoided?

When there is money owed to the CRA it is likely that CRA garnishments will be used to recover the debt. There are a number of steps that will be taken and at times, you will not be informed of what is going to happen.  If there is not a response that the CRA are happy with, they will proceed to take the money from your account. CRA garnishments is a tactic that the CRA will use if they believe it is the only way they will get their money.

The CRA are not the only people who can use this method, but it is easier for them to do it. They are able to move quickly and get their money under a “requirement to pay”. As they are part of the authorities, they don’t need to go through the same process and they will already have all the evidence they feel they need to go to this stage. If you are subject to CRA garnishments, then you need to work quickly and with professional help to get the problem resolved.

You will not get a great deal of warning, so you will be relying on other people who have more knowledge than you to get you out of this mess. As soon as you become aware of CRA garnishments, you should look for someone to go through the process with you, and deal with the difficult laws as you will not be able to deal with this yourself.

If you are aware that you are going to struggle to meet your commitments, then you should contact the CRA before they place CRA garnishments on you and your salary. Working with them will show that you are serious about wanting to pay what you owe, and the fact that you have employed someone to help shows them that you want to do what is right. CRA garnishments are not pleasant and you need to avoid them if you can.

In order to avoid CRA garnishments, you should make a sensible arrangement to pay. Be realistic about what you can afford to live on as if you offer too much you may fall behind, and if you offer too little it may appear that you are not taking this seriously. A tax professional can easily help you with the process of negotiation.

If you have left things too late and find that CRA garnishments have already been issued, you still need to act quickly to try and recover the situation. There may still be the chance that arrangements can be made.  Don’t let it get this far when there are people who can solve the problem for you.

Tax Help to Prevent a CRA Audit

Quite often you will be subject to a CRA audit because they feel there is a problem with the tax return you have filed.  It does not mean there is a lot of trouble to come, but it will not always be easy and it will be hard to determine what has triggered the audit. It could be something very simple, so go through the account you put in and see if anything stands out. As they compare year on year they will be looking for inconsistencies and this could be the reason for the CRA audit.

It could be that you are claiming to have earned vastly less than you have in previous years. If this is genuinely the case then there is no need to worry, but the CRA will have details of your salary so can check. If it is found to be a incorrect and the CRA audit picks this up, you can be fined for making these false claims. Repeated offences will lead to greater penalties so always take care. If you are concerned that you have made a mistake, you can use the services of a tax consultant or company who will be able to guide you through the process.

It could be that there is not a full list of investments listed and the interest you have received has not been declared. You also need to give details about payments that are made towards your retirement. If you are running your own business you need to make sure that the figures are accurate and if there are regular losses, there may become an issue surrounding the business statements you submit. A CRA audit may not be held if the business is new, but losses year on year will be questioned.

When it comes to residency you need to pay taxes in Canada even if you are not living there all year. It does not matter whether your removal from the country is holiday or business related, you will need to pay tax if you are using a Canadian bank account or have a home there. A CRA audit will always pick up on spending habits and this will be when you are spending a lot. If there is suddenly a lot being charged to expenses there will be the need to explain, as will expenditure that seems to be high for your income bracket. There will be the suspicion that you are making money in addition to the salary that you are declaring and this could trigger a CRA audit.

When you work with a professional to fill in your form you are more likely to do it correctly and avoid the issues that can trigger a CRA audit. It can be easy to claim for something you should not and this is going to land you in trouble. Even certain expenses will come under scrutiny, so all receipts should be kept so as you can prove that the expenditure occurred. There is nothing wrong with admitting that you need help and hiring someone to help with the forms can help you avoid a CRA audit.

How And Why VDP Canada Works

The CRA understands that not all taxpayers are up to date with their tax filing and payment and there are some taxpayers who would like to pay but not in a position to do so.  The VDP – Voluntary Disclosures Program gives taxpayers the chance to voluntarily admit that they owe taxes or they have not filed tax returns. As tax always has to be filed and paid, the VDP Canada comes in for people who have fallen behind. VDP Canada is a taxpayers’ preferred alternative to deal with tax problems such as late filing or unreported income.

The VDP Canada is easy to understand but not always easy to go through the process. For this reason you may find that you need help to get the best result when you apply. If the correct process is not followed there can be fines, interest added and even a freeze order put on your bank account.  If you have undisclosed tax problems and the CRA discover this themselves, it is unlikely that they will work with you to reduce tax owed.  If you own up and come clean about the fact that there are things you have not disclosed, then the VDP Canada will certainly work in your favor.

By entering VDP Canada, the principal amount will have to be paid back, and it is likely that the interest will also have to be paid. The good news is there will not be a late-filing penalties or even worse; prosecution. By working with a qualified tax consultant, you get better chance to be accepted by the VDP division and thus save yourself from hefty penalites.

In case you are not sure what is covered under VDP Canada, if you fail to report all earned income; not filing tax returns, claiming expenses that you are not entitled to and not submitting all source deductions.

Unfortunately just because you want to apply for VDP Canada, it does not mean that you are eligible. There are a number of criteria that must be met. Such as your disclosure has to be voluntary meaning that the CRA or other authority has not contacted you yet; the disclosure has to be complete meaning you disclose all the problems, not just partial. The disclosure must involve penalties; you do not need to go through the VDP Canada if you do not have tax owing or no penalties applying to you; Finally, if for late filing, it must be more than one year overdue.

Meeting with an experienced tax consultant will be helpful in that they will be able to properly guide you through to ensure the most complete and appropriate submission of your disclosure.

Avoid the Downfalls of Late Tax Filing

If you are late filing your taxes in Canada there is no need to worry that you are the only one. Many people miss the deadline and it is for a variety of reasons. Sometimes there is the belief that nothing is owed and so do not have to put in a return. Some people will know that they will need to pay tax, but think that if they don’t put in a form they will seemingly disappear from the records and get away without paying – this will certainly not happen. Late tax filing can also happen if you know you need to pay but are not able to find the money.

While late tax filing means you have to pay a penalty it is also serious and is classified as a crime, meaning that there will be time and effort put into sorting the case out and presenting you with the bill. If you have not been able to access receipts and records, you still need to get in touch with the authorities and come to an arrangement. Late tax filing could mean that you are rushed when you least need to be so the ideal solution is to use the services of a qualified tax consultant who has plenty of experience when it comes to tax returns and late tax filing.

The longer you ignore the situation and don’t put in your return, the longer you are breaking the law. End the late tax filing problems by submitting your tax returns as soon as you can. Owing tax is not illegal, so it is best to file and then let your representative arrange a payment plan – or even better – a reduction in what is owed by way of the removal of interest and penalties.

If you do not put in the return on time, it is going to be estimated and the figure that the CRA come up with may be a lot higher than it should be. You will then be left trying to figure out the correct figure and all because you have late tax filing issues and have not submitted the correct details to the CRA. If you do not manage to get your representative to slow down the process and negotiate the affordable tax payment plan for you, there may be legal sanctions put in place and it will be difficult for you to carry on your day to day life.

Regardless of how far behind you are with late tax filing the problem will not go away. It may just be a year but could be as far back as ten years and the tax debt is still there. The late tax filing penalties are 5% of what is owed for first time offender, and over time this can add up to a substantial figure. Added to this will be another fee of 1% for each month that the payment is late and this will last for 12 months and compounded daily interest. If you have been late tax filing in the past three year, the penalty is going to be higher.

What You Need To Do When Facing the CRA Tax Appeal

If you believe that the CRA have made a mistake when calculating the amount of tax you have to pay, then you need to dispute this. If the thought of doing this fills you with dread firstly you will not be the first person to feel that way, and secondly you don’t have to go into battle alone. The CRA tax appeal may be difficult for someone who has never had to submit one before but for an expert, it is are part of their daily job.

A Notice of Objection has to be raised, and as the CRA will automatically believe that it has made the right decision, you need to have the evidence to prove that they are wrong. Every step of the way must be followed correctly, and there is a time limit for you to put in the CRA tax appeal.

In the Notice of Objection, you need to give all the information you want to be taken into account as part of the CRA tax appeal. This must be accurate and clearly explained, as any mistakes will mean that the CRA will feel justified in re presenting their original bill – plus any interest and charges.

One mistake that many people make is that they believe it is up to the CRA to prove that they have sent the correct bill out, when in fact it is up to you to prove that it is wrong. Evidence is needed and it has to be watertight and backed fully by correct arguments. This is where you need to have a tax expert who will be able to use the policies that the CRA have produced to prove your case. There is no room for error in the CRA tax appeal.

If you can get a copy of the report produced by the CRA, you will be well on your way to putting together the CRA tax appeal, and regardless of what you are told, you are entitled to this. By putting together the best possible Notice of Objection package, your tax representative can both cut the timescale and prevent the need to go to court.

It may be worrying that you are paying out money to someone to help you with an appeal you may believe you can make yourself, but the reality is the money you are spending now can lead to major savings in the future. By winning the CRA tax appeal, your bill can be reduced and you don’t have to worry about how to pay.

The CRA tax appeal may revolve around issues such as the amount of expenses claimed or the belief that there is money paid into your account that cannot be explained. You need to remember that there is a limited time period in which to make the CRA tax appeal and if you miss this you are in the hands of the CRA as to whether or not they will allow a late objection.

Going About a CRA Tax Objection

If you have been contacted and told that you are going to be reassessed on the tax returns you have filed, you still have the right to defend your claims if you are not in agreement to what CRA is reassessing. If you do this it will not be a short process, as it can easily take months, and can even run into years until everything is dealt with. This is a long time to have a CRA tax objection hanging over your head, and you need to do all you can to have the problem resolved quickly and in your favor.

While not wanting to cause you too much concern, there are some people who are still waiting for a resolution to their CRA tax objection after several years and clearly this is not going to allow them to live the life they want to live. To prevent ending up in the same position, employ an tax expert who will be able to put some pressure on the CRA and in turn, they will take some of the pressure away from you.

The news is not all bad, as the reason it takes so long to deal with a CRA tax objection is that the CRA do make sure they get everything right. They don’t like admitting to mistakes, but if they have made one, it will be sorted out in your favor. The downside is that if CRA chooses to stand their grounds, your objection is denied and more time and money will be needed to do another appeal. In this sense, it is better to work with a tax professional who has experience in dealing with CRA tax objection in order for you to have the best percentage of case approval for the first time around.

The cost of losing a CRA tax objection will be high in monetary terms so you need to work closely with the people representing you and make sure you provide every scrap of information they request. Once the Notice of Objection has been filed, the wheels are in motion and there is a good side to this. There will be no attempt made to take payments from you towards your tax bill, but you will find that interest is added. Make sure that you put the money you are not paying away as if you lose the CRA tax objection you will suddenly have a bigger bill than before.

It may seem unfair that you are paying interest when the CRA tax objection took so long to decide and that was not your fault. It is possible that you can have taxpayer relief but this will not be guaranteed. Again discuss this with your representative. The initial debt will still stand, but there will be less to pay in interest and added charges.  You get two chances to apply for this, but if the second request is still not accepted that is the end of it and you need to pay the bill. Make sure you are applying for the right reason, not just because you were not aware of the issue at the time.

Why Need Professional Help With Tax Problems Canada?

Regardless of whether or not there is a recession, there will be people who are suffering hardship, and if you are one of them, you could find yourself at odds with the CRA. When you suffer tax problems Canada Tax 911 Now has many highly experienced tax professionals who will be able to give you advice and work alongside you when it comes to dealing with the CRA.

You may think you are capable of dealing with the CRA and this can be a dangerous way to think. They have just one aim and that is to get you to pay your tax and they have no concern for you or how you will manage to pay your bills. If you find that you are facing tax problems Canada we have a system that makes sure that you have to pay what you owe. Agreeing to this on your own may not be the best way to go and you will get a better deal if you have someone carry out the negotiations on your behalf. Some people may say they can help you to deal with the tax problems Canada the Canada Revenue Agencies have presented, but you need to make sure they are up to the job. If they do not have the tax knowledge, then they may not put your case across very well.

There could be many reasons why you now owe money to the CRA and you have to have someone who knows the ins and outs of the tax policies to help you determine that. It is no good arguing one rule when it is not appropriate for the situation.  Regardless of your tax problems Canada, the tax authority needs to be respected and unless there is a good case put forward, there is no way that you will have your tax situation rectified to your satisfaction.

With tax professionals like Tax 911 Now’s team, you will be able to have a free consultation so as you can explain the situation to a professional and they will be able to tell you if you have a case or not when it comes to the tax problems Canada. Just because you are not happy with the amount you have to pay, or realize that you will have a problem paying it, does not mean that you can get away from paying the full amount.

Sometimes you will have to accept the situation and deal with the fact that when it comes to you and your tax problems Canada, the CRA officials may have the upper hand.  That is why your tax problems Canada based will need to be dealt with by someone who is incredibly experienced. If the case has progressed so as you have liens on your property it is more important than ever the person putting forward your case is experienced.

Important Factors about Taxpayer Relief Canada

In an ideal world, tax will be affordable, and will be paid on time so as there will not be a penalty or interest added to the account. This will not always be possible especially when there is a recession and everyone is finding that money is tight. When payment is not made or is made late there will be additional charges added and this will make it even harder to pay. If you have got into a situation where the bill has not been paid and you have been hit with charges, then it is possible to apply for taxpayer relief Canada.

If you do require assistance for tax debts, taxpayer relief Canada does have a well thought out and well presented system of providing it. Although they will not agree to lower the amount of tax principle you owe, it will be possible to have the amount of interest reduced and in some cases extra amounts in the form of penalties can be reduced.

When dealing with taxpayer relief Canada application,  our well experienced tax consultants will review the request first and decide if the relief can be provided. The Minister of National Revenue is the entity who is responsible for making the decision and they have the authority to either grant total removal of the penalties and interest that has been added or at least a proportion of it.

There is more chance of receiving the taxpayer relief Canada approval if you do not make the request yourself but make it through a third party. The best people to contact for help will be professionals who have a great deal of knowledge when it comes to Canadian tax law, and also have experience of dealing with the CRA.

The advice that you will be given is to file your tax returns anyway as at least this way there will not be a late filing fees. It is not possible to be considered for taxpayer relief Canada if not all of the relevant papers have been disclosed.

There are many reasons why relief may be given and a wide range of issues are covered. Firstly it can be a natural disaster that is responsible for the return not being made on time. When considering taxpayer relief Canada law allows for the destruction of records, secondly if it is the fault of the CRA and this will cover things such as delays in informing the resident what their obligation was or not answering queries in a timely manner. Thirdly, financial hardship will be taken into account but this will have to be proved. It will be when it is not possible to pay to keep a roof over your head and feed the family.

There is a final category that means you may receive taxpayer relief Canada, and that will include everything not covered by the others, as long as it is an extraordinary reason. The tax specialists you work with will be able to tell you what they are, and that is why working with a tax professional is so important.

Is Your Bank Account subject to CRA Bank Freeze?

If there is money owed in taxes, the CRA will do all they can to make sure they get it. It won’t be a case of asking what you can afford to pay, as they will take legal action to make sure that they get everything they can. This will unfortunately lead you into great difficulties as one of the things they can do is put a CRA bank freeze on your account.

What is even worse when it comes to a CRA bank freeze is the fact that it can be really unexpected. There is no need to get the permission of the courts and no need to tell you in advance when this is going to happen. Clearly they will not tell you as it would be simple enough to take the money out of the account meaning that there is nothing left for them to take. The first you will know about a CRA bank freeze is when you try to take money out of your account and you are not able to.

You will have been made aware that there is the money owed, and given the chance to pay it off, but most of the time the money is not paid because it would lead to financial hardship rather than just not wanting to pay. There will be a letter sent out as a way of pre-warning and you are told that you could have legal action taken against you.  There are two letters sent and the threat of legal action leads a lot of people to believe that they are going to have time to sort the mess out rather than face a sudden CRA bank freeze.

Once the bank has received the letter known as the “Requirement to Pay” there is nothing they can do other than comply. They have to place a CRA bank freeze on the account.  Once this happens, life can become very difficult and you will find that you face difficulties in all areas of your life including seeing your debts growing.

Your mortgage will not be paid and nor will any direct debits or standing orders. You will be defaulted and often have additional charges added. A CRA bank freeze will even prevent you from taking out cash to buy food. There is the chance to have your salary paid into a new account, but you will have to find a bank prepared to trust you enough to let you open an account with them, after you have had a CRA bank freeze placed on your old one.

There is a way to deal with a CRA bank freeze, and that is to get someone to help you deal with the CRA. It may not be possible to pay off the debt before the freeze happens, but they will be able to work with the CRA to either get extra time, or have the freeze lifted. This is not an easy thing to do, but with the right help and strategy it is possible.

CRA Tax Audit Help- Employing a Professional

If you are not concerned when you find out that you are to be audited then you either are extremely confident in your bookkeeping, or are not fully aware of the problems that can arise if you have made a mistake. If you have any doubts at all about the way the audit will go, then you will be well advised to look for CRA tax audit help. You may be good at keeping records, but unless you are an expert, there is nothing wrong with bringing someone in.

If you have already been audited and it turns out that there is a problem, then again you need CRA tax audit help and the sooner you bring in qualified help the better. They cannot undo what you have already done, but they will know what you need to do to get out of a predicament you may be in. They will be honest with you and let you know from the beginning if there is anything they can do and while there may be the odd occasion when it has gone too far, most of the time they will be able to put forward a defense and bring the bill down. CRA tax audit help will be all you need to get you on track to sort out your tax demands.

It can be difficult to put a case together if you are not sure of the legislation, and the last thing you want to do is to put forward an argument that will not hold water. With CRA tax audit help you can be sure that you are getting out of the mire and not further into it. You may be an expert in your own field, but here you need a tax consultant and one who has experience and can offer all you need when it comes to CRA tax audit help.

 

While it is not the job of CRA tax auditors to scare the Canadian taxpayer that is what many of them do. It is for this reason that CRA tax audit help is needed. As you are so involved with the business you may not be able to deal sensibly with the tax inspector and so the calm head needs to come from the people you employ to give you CRA tax audit help. While your tax is being sorted out, you will be able to carry on with your business and let someone else deal with the hassle and take the strain. Arguing will not help anyone and for that reason you need someone who will put emotionless facts forward, not heartfelt pleas.

 

You will find that when you are looking for CRA tax audit help you will be entitled to a free consultation and after that you may not need many paid for meetings, so the cost of hiring help will be covered by the savings you make. Working with a professional will reduce the time your audit takes as you can have confidential discussions, you can discuss issues that you may not want to bring up with the auditor. That does not mean we will collude with any wrongdoing, but can advise you of what you legally need to do.

 

A Tax Accountant Can Cut Your Bills

Even though everyone knows that taxes have to be paid, it can still be a nasty shock when the bill comes in. The most sensible thing to do will be to set aside a little money each week and hopefully by the time the bill has to be paid there will be most if not all of it ready to be paid. Unfortunately, life often gets in the way and the money is spent on other things, and for this reason it will be a good idea to have a tax accountant.

When you get your tax bill there is an expectation that you will pay it off quickly and therefore not owe anything to the government.  The reality is that there will be times when that cannot happen and you will start to incur penalties and charges. Interest will be added to the bill the longer that it is not paid and this can mean you soon have a substantial commitment that cannot be met. A tax accountant will be able to help and show you that there is light at the end of the tunnel.

The auditors working within the CRA are under instruction to get the money that is owed and there will be times that without the help of a tax accountant, you could agree to pay more than you have to and be in financial straits when there is an alternative. It is important that you sort out your finances and again this is where a tax accountant can help. If they can show you where you are paying too much tax then the bill will be lower, there is more chance that you will be able to pay and there is less chance of there being an penalties incurred.

It has been calculated that there are people who are paying up to three times more in penalties than they are actually paying in tax. That cannot be right and it is going to make it much more difficult to get out of the situation and just get back to paying the normal amount each year. A tax accountant will be able to help you and often can get the amount owed reduced. You can be sure that they will never judge you or push you to pay more than you can afford.

If you decide to deal with a tax accountant, do some homeworks before you do. Firstly, find out if they are prepared to give you a free consultation. You don’t want to pay someone to tell you that they can’t or won’t help you. Next, read up on them and see if there are any comments left by previous users. People love to give an opinion and if they feel let down they are bound to write about it. If you find a tax accountant that does not have any bad reviews, then you should be fine to pass your accounts over to them. The cost of the work they do for you will be swallowed up by the savings they could arrange.

Any tax accountant that tells you they can make all your problems disappear is probably best to be avoided. If they tell you that they will do their best for you, have experience in the area that you are struggling with, and have a lot of success due to the knowledge and experience they have, then you will be safe trusting them.

Making the Most Of The VDP

Knowing that there could be a solution to your tax problems will make life seem a lot better. If you are having trouble paying off all of your tax bills, then there is the Voluntary Disclosure Program – otherwise known as the VDP – that is there to help you. It is not the easiest process to follow and as a result you will be better off not going through the process on your own. You can take a lot of the stress and strain out of it by working with someone who has experience in this area, and will be able to guide you.

You need to be well organized, as with the VDP you need to have a lot of paperwork to submit and which disclosure you go for will determine which papers you need. Again it is going to be the professional who lets you know what you need and what is not going to be looked at.

You could find that you need the VDP for a number of reasons and it could be something as simple as not having filed your return on time, or not having filed it properly. You may not realize at the time that this is going to cause you a lot of problems, but as soon as you are contacted by the CRA they will make sure you know as they will tell you they need payment and that there are sanctions that they can pass making life quite uncomfortable.  It is for this reason that there are companies who can help and let you know if a VDP or other program will be best.

If you are wondering what the benefits will be if you get involved in the VDP compared with going it alone and just trying to pay the bill off, then think of the advantages of not having to pay back all of the penalties you have picked up. Once you have the bill and know what the CRA are expecting from you, then you will be able to determine what you gain from the VDP.  There will not be many times in your life when you are given a second chance and allowed to save money that you owe, so when this option is presented to you, take the offer seriously and don’t let it slip away. There are serious savings to be made so it is important you play the game properly and allow the experts to make offers and push the VDP process forward.

If you are concerned that this is not legitimate and there is no way that the CRA will allow you to pay less than you owe, then read up on the VDP and you will find out that it is a negotiated repayment system and it is for this reason that you are advised to employ someone with experience to guide you through. It is not all a one way system and you will have to agree to certain conditions, but it is still going to lead to you making substantial savings.

When to File A CRA Tax Appeal

If you receive a tax bill that you disagree with there maybe ways for the tax to be reduced. The CRA will present you with a bill in line with the Income Tax Act and will do all they can to collect the money they believe you owe. A lot of the time when there is an objection made, the reason for the disagreement is the interpretation of how the law should work, and success or failure with a CRA tax appeal will depend on whose interpretation is considered to be correct.

If you think you have a case but are not sure what to do next, then you can seek the advice of a tax experts and they will be able to go through the reasons why you may have a good case to put in a CRA tax appeal. If they don’t believe that you have a good case, then they should tell you this, and like it or not you will have to accept the tax bill is correct. Rather than a CRA tax appeal, they can still help you come to an arrangement to pay.

If a general meeting or conversation does not iron out the problems, then there is the need to escalate the issue and put in a Notice Of Objection which is important when making a CRA tax appeal. You need to make sure that you are within the deadline for doing this as each stage you follow will have a timetable and they will not all be the same. The person helping you with your case will be able to keep you up to date and will be able to reassure you that the time you are waiting is not that unusual and is not necessarily a bad omen.

A CRA tax appeal is not a short process, so there is no point trying to hurry things along. It could be six months before the appeal is heard and in some cases as long as 12 months. The person dealing with the CRA tax appeal will be new to your case so will not have any pre conceptions when going over the paper work. Throughout the appeal you will receive relevant documents and you can also ask for the whole file if you feel this will help you.

It will be in your interest to have someone helping you through this process, and as it is likely to be a long term procedure, you need to have someone who knows the tax law and is used to working within this environment. If you put in a CRA tax appeal, there are good sides and bad sides. The good is that there is no need to pay the amount owed until the appeal is decided, so you can have some breathing time. The bad side is that there is interest added. In reality it will be best to pay the balance especially if you are not 100% sure that your CRA tax appeal is going to go your way.

Getting Support When Facing CRA Collection Problems

When you have a tax bill to pay it is important that you do not ignore it.  Ideally it will be paid right away but if there are problems, speak to someone right away so as there can be a process put in place that will allow you to meet your obligations and not end up without enough money to live on. CRA collection is going to happen and it is to your advantage to make sure that it happens the way that is best for you.

Not getting organised will not prevent CRA collection and there will be penalties if you are late paying, and the longer the delay the worse the penalties will be. There may be the chance that CRA are wrong and you do not owe as much, so firstly have this amount checked and once there is a figure agreed then this is the amount the CRA collection will want to get from you.

Once the CRA are aware that you are not making payments, then they will start proceedings to collect the money. It is at this stage that you need to have someone who can help you and by employing a tax expert who will deal with the CRA and save you from the discomfort that their questioning may bring. There is often a risk that tax paid via CRA collection in installments will lead to you paying more than if it was paid right away.

While not impossible to deal with the CRA alone, it is advisable to retain help as they are familiar with the way the system works.  CRA collection can be harsh and if there are problems when the program is in place you can find that you are getting deeper into trouble and will not only have additional costs added to the account but could end up with your employer becoming aware of the issue. Money can be taken from your wages and even your house can become part of the deal. It is also possible that your bank account will be frozen so you will not have access to any of your funds. When it comes to the tax you owe, CRA collection will not stop until the entire amount has been paid off.

While CRA collection officers are going to do all they can to make sure that your tax debt is the one that is dealt with ahead of any others that you may have. By neglecting others, you could find that you are getting into trouble with any companies that you have loans or credit cards with as you may be struggling to make your payment to them.

It will only be with expert help that you can negotiate the minefield that is the law surrounding tax collection. Once you have someone who understands the procedure and has dealt with numerous cases, that you can become more relaxed about CRA collection.

FILING CRA TAX OBJECTION

If you receive a notice from CRA tax and not ready to accept it, you may file Tax objection. You can either do it by yourself or can contact with an expert tax accountant to have them checked or reassessed.

How to File Tax Objection

It is fact that people most often do not have any idea about

  • If they are at all entitled to file objection to CRA tax assessment.
  • How to make the objection for reassessment,
  • What is the right time to file Tax Objection,
  • What should be the best supportive documents to boost the chance of winning the case, etc.

All the above factors make the most of the taxpayers find no other option but to swallow up the bitter pills and disburse the amount claimed by the CRASo having a skilled and veteran tax professional is an added advantage for the people who want to file Tax objection.  

You are entitled to withhold the amount till your case is officially evaluated by the CRA. In other words, if you have submitted tax objection, it is not necessary that the disputed amounts are to be paid instantly.  You can pass the time till Tax Appeal Division brings out its final decree about your case.

On the other hand, after you have submitted the objection, then you can ask for the disagreed amount of money that you have already paid to the CRA. For getting a refund of your excess money, never take it lightly by doing it yourself. It is wise to consult an expert for filing Tax Objection.

In case you receive a CRA Notice of Assessment, and want to submit a Tax Objection, you must do it within 90 days. If you want to win a tax appeal, the best thing to do is to hire a competent tax professional to appeal for you.

As there might be unusual variables in regard to the dates, it is a best idea to consult with a trained and experience tax professionals for better understanding of your situation. Always ensure that the documents in support of your Tax Objection are all valid and in correct format.

People most often ignore the idea of consultation with any of the trusted, skilled professionals that can deal with the Tax Objection successfully. Later they regret realizing the error they had made. They might face fiscal set back later because of the error committed at the time of filing.

After you file the tax objection, the Appeal Officer of CRA will review your stand. This officer is the part of the CRA but is autonomous to the Audit section that generally prepares the assessment.  Thus, it ensures that your appeal of objection is being attended by some new eyes. These people have no idea of the outcome.

You can talk to the Appeals Officer with a view to persuade the person about the authenticity of your position. You can also do the same in writing.  In reality, there is no formal “inquiry.” If the Officer is in agreement with you, the reassessment of your tax objection might be left out or might be prepared differently to reproduce your position.

The Benefits of getting help on CRA tax audit

No matter how accurately you have filed your returns and paid them on time, possibility of tax audit from the CRA is inevitable. It is for the purpose that along with taking precautions on guaranteeing tax return accuracy, getting help on CRA tax audit is also very helpful.

You will need to hire services from a reputed, experienced tax resolution company. This tax resolution company deals with such problems and provides necessary tax audit help on a daily basis. Not only does help on CRA tax audit relieve taxpayers from the stress and agony they otherwise have to go through with the CRA audit rather they also work in your interest along with the CRA. Often taxpayers feel rather vulnerable and defensive during the audit process and in order to feel better and deal better with the process, it is essential that some information be on hand to deal with the situation.

Any auditor that audits your assets will be looking to assess your taxes and has no intention to protect your interests. Also dealing directly with the CRA can be disastrous and letting a tax expert handle them, may prove to be more productive. CRA auditors will often ask taxpayers to provide detailed information and documentation to assess all taxes besides wanting you to answer questions that they have regarding your assets. In order to be prepared to answer all those questions and provide all required documents, hiring help on CRA tax audit may prove beneficial in the long term. One benefit is to let you off the stress and let the tax expert handle the CRA auditors and let you focus on how to make your living peacefully. Also assessing any asset wrongly will also result in wrong calculation of taxes which can cost you dearly.

A tax expert can offer initial consultation which will prepare you to face the CRA auditors besides handling them as well. Of course the CRA auditors will need you to answer a few questions however hiring help on CRA tax audit will ensure that you face the least possible exposure with the auditors while they handle all the requirements and smoothly guide you through the audit process.

Also hiring professional help on CRA tax audit ensures that the audit process reaches an efficient and quick resolution while minimizing any chance of a mistake or any misunderstanding that may occur from an auditor.

CRA has prime authority to seize and demand for documents that they may require from related parties and accountants that are connected to you. These discussions, notes and documents can also be used against you by the CRA if they wish whereas hiring help on CRA tax audit and sharing information with them assures and guarantees that no shared information is leaked out. Also CRA has no authority whatsoever to demand for any information from outside hired services.

Giving complete details to a tax expert and hiring help on CRA tax audit ensures that all your tax returns are filed effectively and all written submissions are properly submitted, along with discussing and explaining your position clearly to the auditor relating to certain issues.

 

Summary

Hiring help on CRA tax audit can be very beneficial for taxpayers. Tax experts can efficiently handle all matters with CRA auditors and get you through the process instantly and easily. To relieve you off the stress of audit, hire help on CRA tax audit and get through without much stress and anxiety.

 

The Best Way To Apply for CRA Tax Relief

However difficult it may be for you, it is important that tax debt is paid before anything else. If you miss payments there are a lot of penalties that could be imposed, but one major problem is that fact that interest can be added, and this will make it even harder to pay it off. It is possible to get CRA tax relief but there is no guarantee that everyone who applies will be successful.

 

You can apply for CRA tax relief if you are a business or an individual, and if accepted you will be able to wipe out some of the interest and charges that have been added to the account. It will not reduce the amount of tax you legitimately owe, so you need to be prepared to pay the initial bill you will have received. CRA tax relief will make things easier for you, but it will not wipe out your tax debt completely. These charges could have built up over a number of years, and at times could double the debt you have.

 

It is not just a case of asking for CRA tax relief, you must be able to prove that you are a special case and need to have the charges removed. The factors that will go in your favor will be financial hardship and a variety of medical conditions that includes an addiction or mental health issues. Natural disaster will be taken into account as will death. It is also likely that you will receive CRA tax relief if the bill has increased so much as a result of mistakes made by the CRA.

 

Even if you fit into one of the categories indicated above, the process is not easy and there will be a long road ahead of you. To make the journey easier, you could take professional advice and allow an organization to make the request for CRA tax relief for you. For you, this may be the first time that you are going through the process and you are not aware of the nuances of the law. For them it is a regular occurrence and they will know what is important and what is not when requesting CRA tax relief.

 

The difference between success and failure could be the way that the application is worded and presented. The CRA will not want to lose money and while they will work within the law, if possible they will not grant CRA tax relief unless they have to. If the case put before them is flawless and makes it clear that you are a deserving case, you will find it easier to have the penalties lifted.

 

As applying for CRA tax relief is a detailed process, a professional will always be able to get you better results than you would get by applying yourself.  Free consultations are available for you to know if you have a chance of having your debt reduced without having to pay out any more money. Your consultant will let you know if you are likely to be successful before you proceed.

Dealing With CRA Tax Problems

It is hard to imagine how stressed you can become if you are not able to pay your tax. Knowing that there are sanctions that the CRA can place on you can make it worse, and due to these sanctions, it is important that you sort out tax problems with CRA as soon as you can. The people who manage to sort out their CRA tax problems tend to be the ones who get help to deal with them, rather than struggle along alone.

When there is someone who is qualified looking at the problems you have, they will be able to let you know what they can do to help. There are few issues where there is nothing at all that can be done, as even when there are not reasons to reduce the amount you owe, it could be possible to arrange a way to pay and this will go a long way towards sorting out your CRA tax problems.

Even for the strongest people, dealing with the authorities can be difficult and even if you feel you can cope, the time it takes you to carry out the research and decide what to do, could be better spent working on your business or enjoying life with your family. A CRA tax problem is best left to someone who has knowledge of the legislation and experience of arguing the legalities with the authorities.

Whatever the reason for your tax issues with CRA, the people who you hire to put the mess in order will not judge you. It could be that you miscalculated and got a bigger bill than you expected or just did not put anything away to pay. When you work with a professional to solve your CRA tax problems, you will not only get the information you need for the current problem at hand, but can also get a lot of advice for the future tax issues.

The more you learn about what you have to pay and how the forms are worked out, the more likely you are to get it right next time and not face the same problems. You really will find the information you pick up a great help and it can stop you ending up with a CRA tax problem in the future. The relief you feel when you realize that there is a way to pay the bill and not end up having money taken from your salary or having a lien put against your house is hard to describe.

You may have thought that you would be the kind of person who would never have CRA tax problems. Unfortunately this is the kind of an issue that can happen to anyone. You do not have to try to cheat the system or in the habit of running up debts.  Once it happens to you, you will want to get out of the mess as soon as you can.

Dealing With A Wage Garnishment From CRA

When most companies or organisations want to take action against you, they will have to take you to court, but this is not the case when it comes to the CRA. They can take action without going through this process and the results of falling behind with your tax can lead to a variety of penalties. There can be a program put in place to allow you to pay, but often that option will not be given, and you will face a CRA tax garnishment.

There is no come back from this situation, as once the CRA tax garnishment is in place, you have to accept that there is going to be money taken from your salary weekly or monthly depending on how you are paid. Not only will you be unable to get them to stop taking the money, but they are unlikely to reduce the amount they take regardless of the situation it leaves you in. They will see that your debt to them over rides all others and the CRA tax garnishment of your wages will be in place until everything is paid off.

While you will struggle to get anywhere with your requests for reduced payments on your own, this does not mean that there is not a way to get help. There are companies who will know a great deal about the law and understand that there may be elements of the law that will work in your favor and allow you to have some relief from the financial burden you find yourself under.

When you consider that it is likely that the CRA will take 50% of your salary if you are working for someone else and it could be the lot if you are a sub-contractor. When you have a CRA tax garnishment your employer will be aware of it and apart from the fact that this will be embarrassing, it could also leave you in the position of having to accept unfavorable working conditions for a while as the employer knows you are in financial difficulty and not in a position to walk away.

It may seem that a CRA tax garnishment is the worst thing that can happen to you, but that is not always the case. They can freeze your bank account and then have any savings you have sent to them, or they could go as far as placing a lien on your property. A further worry is that fact that it is possible for more than one of the sanctions to be put into place.

If the bill is high enough they may decide that a CRA tax garnishment is not going to get them their money quickly enough and so do that in conjunction with one or both of the other two options. It is going to be to your advantage to employ a professional as soon as you become aware of a CRA garnishment, as the quicker they begin to help the quicker the nightmare ends.

Essential Information for Canadian Taxpayer Relief

Any sensible person would never want to suffer from tax debt that is uncontrollable and the best way to avoid paying of interest and penalty on your taxes are to pay them on time. There are however times when seeking Canadian taxpayer relief becomes out of control when an individual is forced to pay interest and penalties along with the accrued tax return amount.

Depending solely on these circumstances, the CRA allows relief for taxpayers. This relief allows waiving off any additional interest or penalty that adds up on the original tax amount. There are also ways through which the original tax amount can be paid in easy installments throughout the year. Under Canadian taxpayer relief provisions, the taxpayer is allowed a period of 10 years in which he or she can make a relief request provided that their situation comply with the allowed provisions under which Canadian taxpayer relief is granted.

It should be remembered that CRA very exhaustively and comprehensively confirms on whether a Canadian taxpayer reliefrequest complies with the stated situations of relief. There are certain situations that render a taxpayer as being eligible for CRA taxpayer relief. These situations include

–          Extraordinary Circumstances

–          Financial Hardship

–          CRA’s Action

Extraordinary circumstances refer to situations that are beyond the control of a taxpayer, rather any individual. Any such occurrence that acts as a hindrance for a taxpayer towards payment of taxes such as a natural disaster, serious kind of illness, services disruptions of any kind such as a postal strike, etc can be waived of by the CRA.

Financial hardships also make an individual eligible for Canadian taxpayer relief provision, however CRA will to an extended limit confirm on the inability of a taxpayer to pay and only after confirmation will it waive off the excess interest and penalty on the tax amount. Not every financial inability is entertained in this regard whatsoever, except those that cause inability to provide even the very basic necessity of life such as food, clothing and shelter.

Another Canadian taxpayer relief provision that allows waiving off penalty and interest is due to the doing of the CRA itself. For example any interest or penalty that is imposed on a taxpayer which resulted due to a late processing by the CRA or delay in informing the taxpayer about the tax is also waived off by the CRA.

Other than the defined reasons there can be other circumstances in which the Canadian taxpayer relief can also levy however the provided reasoning should be truly justified. Also in order to consider the taxpayer relief request, the Canada Revenue Agency considers certain factors that contribute towards the decision of accepting or rejecting the request.

These factors include

–          Tax compliance history

–          Whether the existing arrears amount is knowingly allowed to exist

–          If previous tax affairs were handled with a reasonable amount of care         and

–          The appropriateness of the taken actions.

Whatever the action may be, it is totally on the discretion of CRA to grant or refuse Canadian taxpayer relief request and it is in no way bound by the grant relief provision.

 

Summary

The CRA under the grant relief provision reserves the rights to waive off penalty and interest levied on taxpayers provided they qualify for it based on the specified rules. Taxpayers supported by the Canadian taxpayer relief program can prove their inability to pay and avail the provision for themselves.

Why You Should Hire a Tax Accountant

When it comes to hiring a tax accountant. Hiring an inexperienced accountant with no expertise and knowledge specifically in taxes will not in any ways help you rather at points can harm your overall situation alright.

Filing your tax returns every year is an obligation on every citizen and every year it is the same question asked by numerous individuals on whether they should hire professional help to file their returns? Will hiring a tax accountant or tax consultant help in any way? The answer is a definite yes. First things first every tax situation is different from the other and in order to avail all amnesties applicable on your tax situation, a tax accountant will work to your benefit as he or she is a professional of the field and has far more experience of dealing with taxes and many of us do.

The best way to hire a tax accountant for yourself is to look for certified professionals who are experienced in the tax area as they are the ones who on a daily basis deal with several tax cases and situations and know best what will work out for you. There are often times when people suffer consequences owing to incomplete or improper filing of returns which is why a tax accountant should be chosen for the job to avoid any severe actions on behalf of the CRA.

Also when it comes to paying your taxes and availing every amnesty that you are eligible for, hiring a tax accountant will help especially in regard that new tax laws are governed almost every year and not knowing them and how they will work in your favor is a big loss on your part. Only a tax expert who on a daily basis caters to cases and situation is well aware of what to do in what circumstances. Also since these professionals are always dealing with the CRA they are more informed on how CRA would react to a certain stimuli by the debtor and what a tax payer should do in case CRA objects o him in any way.

You can look for reputed services companies that offer professional tax accountant services and consult friends and family members to find the best tax accountant for yourself.  You can however also check on the reputation of the accountant you are choosing for your tax matters and ensure that the selected candidate does not have any complaints registered against him or her.

Besides individuals, small and large businesses too benefit a lot when it comes to hiring a Canadian tax accountant as not only can they manage employee taxes and payrolls but can also help in making the most of available money while getting the best of the tax breaks for you. You can always opt to file your returns yourself; however any mistake will ultimately take you to the doors of a tax accountant, so why not make a wise decision on time.

Summary

 

Hiring services of a tax accountant helps in moving away from several taxes related issues that can arise later due to a mistake or having no knowledge of a certain tax related issue. Tax accountant can help in saving you precious money, time and hassle that you will spend with the CRA in absence of a tax accountant.

What is a Canadian Taxpayer Relief

Canadian Taxpayer relief refers to reaching a negotiating with the CRA where the debt issue is resolved through waiving or cancelling off the interest or penalty amount from the actual payable taxes of a debtor. Canadian taxpayer relief program was designed to offer relief to taxpayers who were unable to pay their tax debt s owing to

– Any extraordinary circumstances

– An action of the CRA (Canada Revenue Agency)

– Financial hardships resulting in inability to pay off debts

– Other similar circumstances

Canadian tax relief for a debtor is specified differently under cancelling of the debt and wavering of the tax debt. By cancelling of a tax debt it is meant that the already levied penalty or interest on a taxpayer is cancelled either in whole or partially, however wavering of taxpayer debt allows amnesty or relief from a future interest or penalty that will be levied.

As listed above one way of Canadian taxpayer relief is wavering or cancelling of interest and penalty owing to extraordinary circumstances. These extraordinary circumstances include

– occurrence of an accident or any illness

– facing disasters that are either natural or manmade such as floods, fires, etc

– any civil disturbance incidence that cause disruptions in any one or many services such as strikes in postal service         and

– Severe mental or emotional distress such as death of a close or immediate member of the family.

 

Further on actions of the CRA that allow Canadian taxpayer relief include

– Any error present in the CRA material that resulted in a taxpayer filing a return of any payment that was based on any incorrect information

– Any processing delays that resulted in not informing of the taxpayer and the assigned time of paying owed amount was over.

– Processing error

– Any incorrect information to a taxpayer usually in writing by CRA

– Any undue delay in audit completion or resolving of an appeal or objection

– Any information delays that hinder taxpayer from paying his dues on time.

 

These are the conditions besides proved inability to pay taxes and other circumstances that make a taxpayer eligible for Canadian tax relief.

There is a common misconception that taxpayer relief can be obtained only once and so giving it the best shot once is always a good idea. This is not true as tax relief can be applied for by individuals as many times as they are warranted for it. That is when any of the above mentioned conditions are present Canadian taxpayer relief can be applied for.

Also applying for a Canadian taxpayer relief through not filing the tax returns initially and then later on proving bankruptcy or inability to pay will not render a taxpayer eligible for the Canadian tax relief. Not filing taxes is an offense and can be prosecuted. It is essential to file all outstanding returns before filing for the Canadian taxpayer relief program as it will not be considered until everything is up to current.

Also any birth disability with an individual will not make him eligible for a Canadian taxpayer relief program as if he or she has managed to pull it this far they can do it in future as well. Since filing for taxpayer relief is a very complex process, hiring the service of a tax expert company such as Tax SOS will help you in following the right direction and ultimately success in getting the Canadian tax relief if you qualify for it.

 

Summary

Canadian taxpayer relief program was designed to relieve tax debtors from paying interest and penalties that are levied on them that were either due to an error of the CRA, inability to pay off, an extraordinary occurrence or some other circumstances. CRA allows tax relief to any individual as many times as he proved to be worthy of it.

Taking Part In The Canadian Voluntary Disclosure Program

It is easy to make a mistake if you fill in your tax return without professional help. It could be that you misinterpret what needs to be done, or just don’t put the figures in the right place. In Canada, the Canadian Voluntary Disclosure Program allows residents to contact the CRA and let them know about incorrect or inaccurate information that has previously been submitted. The sort of information that is allowed, will be details that has been incorrectly reported, or that was missed of the disclosure completely.

The Canadian Voluntary Disclosure Program is something that is open to any taxpayer, and this can be a business as well as a individual. It does not matter if you are a Canadian resident or not, an employer or employee and if you prefer, you can authorize someone to put in the disclosure for you. It is at times like this that there should be someone helping you. Had you employed professional help at the beginning, you may not be in this position, but at least you are getting the chance to put things right.

There are many things that you can disclose as part of the Canadian Voluntary Disclosure Program, and the areas that will be relevant to you will depend on the nature of you employment.  It can be late-filed information returns (e.g. T4, NR4, T4A-NR, T106, T1135, T1134), or GST/HST omissions, unreported source deductions, expenses that should not have been claimed, business income or unreported personal, from sources inside or outside of Canada and late-filed income tax (for example T1, T2) returns. This is not the full list, but will be appropriate for many returns.

If you are unsure as to whether or not you should take part in the Canadian Voluntary Disclosure Program, it is worth remembering that doing so could prevent you incurring penalties and even being prosecuted. You would need to pay the tax that you omitted paying previously but this is to be expected.

Before filling in the disclosure it is worth checking with your representative that you have all the information needed. There are a number of reasons for filling in this disclosure – not least the fact that it can stop prosecution. You must start the process before you are informed that there are queries being raised regarding your form, and it will relate to returns that are more than 12 months old.  If you do not a full and detailed submission in relation to the Canadian Voluntary Disclosure Program, your application for a disclosure can be refused.

If you are taking advantage of professional help, they will know where to send it, and it will include the need for you to fill in Form RC199, or provide the information in your own words. They will have to include Form T1013, Authorizing or Cancelling any Representative, or Form RC59,  and they must be signed. They will then send it to the relevant tax office dealing with the Canadian Voluntary Disclosure Program.

You will be notified of the next stages after about few weeks, and it is possible you will be asked for more information and this will be expected within 30 days of request. Next you will be informed as to whether the disclosure as part of the Canadian Voluntary Disclosure Program has been accepted or not.

What can be claimed as Taxpayer Relief Help?

Taxpayer relief help can be given in conditions where some actions of the CRA have come in the way of the taxpayer’s obligations. Other conditions that apply for seeking taxpayer relief help could be inability to pay on part of the taxpayer due to financial hardship and through circumstances arising out of natural calamities or civil disturbances and disruptions.

CRA may cancel or waive certain penalties and interest charges when they affect a taxpayer’s ability to pay the taxes resulting mainly from actions of the Agency itself such as delays in processing. Such delays may result in the taxpayers not getting informed within a reasonable time period, stating the amount of tax to be paid. The delay in the relaying of information can result in the taxpayers not being able to pay their taxes within the time limit allowed.

The actions of CRA could also be erroneous, leading a taxpayer to file the tax return or make payments, guided by information which may be incorrect. The errors also could be in the processing of the notices. Other actions of the CRA that could have an impact on the taxpayer relief help would be a delay in the resolution of an appeal or a Notice of Objection or in the completion of a tax audit.

CRA also considers waiving or cancelling the interest charges and penalties where an inability is proven and confirmed by the taxpayer who may be experiencing financial hardship. In these cases, the penalties could be waived or cancelled in part or in whole towards their tax obligations. CRA reviews the case if the taxpayer is not able to make the tax payments or negotiate payment plan schedules as the interest charges make up a considerable portion of the payment amount.

As a part of the taxpayer relief help, CRA will assess that the accumulated interest payment would result in an extended inability on the part of the taxpayer, resulting in financial hardship and a burden on the provision of basic necessities like food, medical help and conveyance or shelter expenses. In such cases, taxpayer relief help is provided by considering cancellation of all or a portion of the entire accumulated interest amount.

It has to be noted that CRA would not consider a cancellation of a penalty as a result of the taxpayer being unable to pay the taxes because of financial hardship, unless it can be proved that it was due to extraordinary circumstances which prevented tax compliance. This could be because of natural disasters or in special cases where a business experiences severe financial difficulty. Enforcement of penalties would affect the continuity of that business’ operations, resulting in the employees losing their jobs or the community’s welfare being jeopardised. In these cases, penalties could be waived as taxpayer relief help.

It is a wrong notion on the part of some Canadians that the taxpayer relief help is a program that is allowed on a one-time basis. This is not true, as all residents who have been charged interest or penalties carry the right to seek relief every time that it is warranted. The taxpayer relief help group does not maintain any inventory of collections and it will review cases on their submission merit and not by any influence of a collection diary.

How to deal with a CRA Tax Problem?

The CRA tax problem will arise when you have not paid the tax amount outstanding in your name by the tax return filing deadline. The problem will still raise its head when the CRA does not agree with the income or the deductions that you have reported in your returns.

Many people are not sure how to handle a Collections Officer from CRA who gives them a call before coming to their home or their office. Before you get a Notice of Assessment from the CRA, it is advisable to be proactive and prepared and seek professional help from specialized tax consultants. When you seek professional tax consultant’s help, there is no question of letting the Collections Officer into the home or the office as the Officer will be taken care of by your legal tax representative. While seeking professional help for the CRA tax problem, you have to keep in mind that the Collections Officer does not have the authority to forgive or pardon any tax debt amount of yours. The task of the Collections Officer is to collect the entire tax amount owed by you.

It is a mistake when you want to tackle the CRA tax problem all by yourself. Collection officers could be very aggressive and their main aim is to collect the full tax amounts as fast as possible. They are backed with full collection powers and the taxpayers are not fully aware of their rights are when it comes to collection and enforcement of taxes.

When you receive a Notice of Assessment or any communication from the CRA concerning your tax debt, you need to hire the services of tax consultants as soon as possible. These consultants have the necessary experience in handling the CRA collections and have been solving CRA tax problem for many years. They may well be in a position to challenge the Notice of Assessment that have been sent by the CRA to you. They may counter that by filing a Notice of Objection. They will also be adept at arranging or negotiating a payment arrangement or a plan that may be acceptable both to you and the CRA.

When such negotiations are carried out in the early stages of the CRA tax problem, enforcement actions could well be avoided and you will be saved from the embarrassment of seizure of your bank accounts or your wage garnishments. Even if your wages have been garnished or your bank account has already been seized, you can still take care of the CRA tax problem through your tax consultants who can work out a satisfactory schedule of payment to the CRA. When the CRA accepts it, the garnishment of your wages will be lifted and the freeze on your bank account will be released.

When a payment negotiation plan is accepted by the CRA, your tax consultants may also advise you in connection with the consideration of a taxpayer relief or fairness application in case of qualification as a result of extra ordinary circumstances or financial hardship that may have affected your inability to file your tax returns in the first place.

Eligibility Criteria for the Taxpayer Relief

If you want to consider sending out an application under the Taxpayer Relief Program in Canada, you have to first think in terms of hiring some professional consultants who can help you go through with it. This should be done even when you find a lot of information on the web around CRA’s Taxpayer Relief Program which was previously referred to as the Fairness Program.

Not everyone who reads the information on taxpayer relief scheme can understand it thoroughly. The information could turn very easily into misinformation around this program. It is the experienced tax accounting firms who can interpret all the details concerning the taxpayer relief program.

The important objectives of the taxpayer relief program are worth going through after investing time and effort into their application. It is better, still, to employ the service experts who know the program, in and out.

The Taxpayer Relief Program in Canada was created to enable the Minister of National Revenue to offer relief schemes from penalty and interest charges when certain circumstances held a taxpayer back from meeting the tax obligations. The taxpayers could be individuals or business corporations. The term `taxpayer’ also includes employers or payors, partnerships, organisations, trusts, estates, Goods & Services Tax (GST) and Harmonized Sales Tax (HST) claimants or registrants.

These exceptional situations could be broadly categorised as:

  1. Inability to pay the taxes on account of financial hardship.
  2. Certain actions taken by the CRA; those were of an erroneous nature.
  3. Extra ordinary circumstances such as acts of nature of Force Majeure.
  4. Other Circumstances.

 

The taxpayer relief program makes a distinction between the cancellation and the waiver of the penalties and interest charges. The justification behind this was provided by the CRA as it understood that the granting of relief to a taxpayer was redundant if the same taxpayer was burdened by interest and penalties, making the whole relief scheme a futile exercise. The term `cancellation’ refers to penalties and interest amounts after they are assessed or charged, towards which the relief is provided in whole or in part by the CRA.

The extraordinary circumstances cover penalties and interest charges that are either cancelled or waived in part or in whole when they are affected by circumstances beyond the control of the taxpayers. These extraordinary circumstances may prevent taxpayers from paying their taxes when they fall due, preventing them from filing their tax returns in time or complying with the tax obligations. These circumstances include natural or man-made disasters like a fire or a flood. They may include civil disturbances with services being disrupted. There may be circumstances like a serious ailment or an accident that causes partial or permanent disability. The circumstances also include severe emotional and mental distress that may arise out of certain events that occur in a family such as a death in the immediate family.

A response from the CRA concerning the Taxpayer Relief Program may take anywhere from three months to a couple of years depending on the number of request applications that fall due. It is, therefore, advisable, to engage the services of tax professionals as they will be in the best position to assess whether your request is adequate or not. This makes it worthwhile before you file the application for the review and consideration of the CRA.

Tackling and Surviving a CRA Tax Audit

The best thing to do when you receive a CRA Notice of Assessment is to stay calm and deal with it.  You have to open all the brown envelopes that you get from the CRA. If you happen to receive calls from the CRA, you have to receive them without flinching or return them promptly if you have missed them. When you start ignoring tax problems, they do not go away. They come back strongly at you in the shape of a CRA tax audit.

 

CRA tax audit will generally be notified in a letter format. On some rare occasions, a telephone request would be made by the CRA. This letter will set out the details like the audit years or the auditor’s contact information. It would also include a list of papers that the CRA may wish to inspect and this could include your financial statements, copies of tax returns, schedules of depreciation or payroll records.

 

When you are going to be reviewed with a CRA tax audit, you have to respond calmly and submit all the information that is being requested. To be specific, if the CRA wants to review your travel expenses, they will set out a date for you to provide the necessary documentation to support what you have reported in your tax return. You have to make sure that you are able to meet the deadlines that have been set by the CRA tax audit. When you have all the necessary paperwork to support your case but you are tardy and late in sending the information, you will get your tax return reassessed without giving you the credit. You will have to go through filing an adjustment to make the claim once more.

 

As a taxpayer, it is not possible that you will be able to stay organized every time. Sometimes, you will not be able to find all your tax related documents at one place. But the fact remains that you have to submit all the documents that are required in a CRA tax audit. Your tax consultants or the CRA are not going to come around and help you in finding the documents. Any excuse about not being able to locate the required documents will not be accepted by the CRA.

 

One of the rules of the CRA tax audit is that if the review ends in a reassessment, it is wiser to pay the tax balances promptly so that you avoid interest charges subsequently. Any disagreement you have can be taken care after the payment through a Notice of Objection. Should the CRA reverse its decision your reassessment, you will get your money back.

 

It is better to take the help of the tax accountants to help you in these tax battles. If you feel that you are receiving unfair treatment from the CRA, you can lodge a complaint with the Taxpayers’ Ombudsman Office. This office will review all complaints related with service and make sure that the Taxpayers’ Bill of Rights is adhered to, even if it cannot change all the tax laws in your favor.

Filing the CRA Notice of Objection

When you receive a Notice of Assessment from CRA and do not agree with few things in it, you may take a decision to file a CRA Notice of Objection. You can fill out your forms and send it either through your tax accountant or electronically, by using the CRA Response Program which could be found on the tax shelter source website.

 

When the CRA Notice of Objection is filled out, the completed forms have to be printed out at first and then mailed to the CRA. You may have to file a separate CRA Notice of Objection for each tax year if you have made deductions in more than one year and have been reassessed for those particular years. For example, if you have made deduction sin 2011 and 2012 and CRA has reassessed you in both the years, then it is necessary that you file a separate CRA Notice of Objection for each of those years.

 

If you have made deduction sin 2011 and 2012 and if the CRA has only reassessed the 2011 one, you have to file a notice for 2011 only. You do not have to file a CRA Notice of Objection for a year for which there has been no reassessment, for that notice will not be treated as valid.

 

You can always receive a reassessment for the same year at a later period. One tax year can be reassessed many times if it is still under the reassessment period that is allowed. Sometimes, the second or the third reassessment may come after a CRA Notice of Objection has already en lodged. This notice will stand invalidated by that subsequent reassessment. When a second or a third reassessment arrives, it is the responsibility of the donor to file another Notice. If you happen to get more than one reassessment for the same year, it is better to seek professional advice. You cannot leave things to chance.

 

When you take professional help, your adviser will have to make sufficient copies of the CRA Notice of Objection before you get it completed for every year that you have been reassessed. This Notice has to be filed with the CRA within a period of ninety days from the date that reassessment has been mailed to you. It becomes your responsibility to make sure that the Notice is filed within the time period. The date of the Notice of Assessment will appear on the left hand corner at the top on the initial page of the reassessment document. It will also inform you about the CRA Tax Services Office that has mailed the notice to you.

 

The CRA Notice of Objection has to be delivered to the Chief of Appeals at the same Tax Services Office that has mailed the Notice of Assessment to you. In this Notice, you have to fill out all the requested information such as your full name, your address and the Social Insurance Number, along with the tax year that you have been reassessed for. You also have to fill in all the details of your authorized representative or your tax consultant. The copy of the Notice of assessment has to be enclosed. You have to take the acknowledgment with the date stamp from the CRA Tax Services Office.