Recent posts in Tax

The recent decision of the Tax Court in Williamson v. The Queen is a good reminder of the personal obligations directors have under the Income Tax Act (ITA) for remitting employee source deductions and the potential harsh consequences for failing to live up to those obligations. In Williamson, the director’s company had entered into a [...]

The Canada Revenue Agency has revoked the status of the Canadian Lacrosse Association as a registered Canadian amateur athletic association (RCAAA) for its involvement in what the CRA has declared an “abusive” donation scheme.

It is finally spring. The snow has melted, the flowers bloom, children put down their video games and leave their winter dens behind to frolic in the sunshine. What better time then to discuss the draconian powers of the Canada Revenue Agency. Although there may be clear skies overhead, on the horizon spring storm clouds brew.

Okay, that may be a bit melodramatic, but if you or a client has ever had to endure a CRA audit the experience can be a lot more frightening than a spring storm. We are told we have “rights” as citizens, that there are checks on government power, yet it seems that when it comes to dealing with one particular arm of the government – the CRA – all of these rights fall by the wayside and the state has all the power. Worse still, they’re exercising their power in order to confiscate our (or our clients’) money. Sometimes a lot of our money – scary stuff indeed. This post will canvass the tax audit and appeal process, provide explanations for the CRA’s seemingly endless powers, touch upon some key issues of the law in this area and hopefully provide some guidance to you and your clients who may be facing, or will one day face, a tax audit.