Tax Avoidance vs. Tax Evasion: What’s the Difference?
No matter how diligent you are with your taxes, understanding the difference between tax avoidance and tax evasion is crucial. While they sound similar, their consequences are vastly different. What Is Tax Avoidance? Tax avoidance is the legal practice of minimizing your tax liability within the framework of CRA regulations. This includes strategies such as […]
Facing Tax Evasion Charges? Why You Need a Tax Lawyer
Are you facing tax evasion charges? This is a serious legal matter that should never be ignored. The stress of being pursued by the CRA can feel overwhelming, and the potential consequences of tax-related offenses are severe. However, you’re not alone—many hardworking Canadians find themselves in similar situations, unsure of where to turn. The Canadian […]
7 Steps to Address Unfiled Canadian Tax Returns
Let’s be honest, dealing with unfiled tax returns or errors in your Canadian taxes can feel overwhelming. But don’t worry, you’re not alone. With the right legal support, you can not only resolve the issue but do so with confidence. What to Do to Regain Control of Your Tax Situation The most important thing to […]
Unfiled Tax Returns: How a Tax Lawyer Can Help You Comply
Tax season can be stressful, but what happens if you miss the deadline for filing your Canadian taxes? The thought of unfiled tax returns can be nerve-wracking, especially if you’re worried about penalties, interest, or even legal action. However, if you’ve missed the deadline, don’t panic—you’re not the first to make this mistake, and you […]
Shareholder Benefits from Subsection 15(1) of the Income Tax Act (Canada)
Subsection 15(1) of the Income Tax Act (Canada) is designed to prevent shareholders from extracting assets from a corporation tax-free. A shareholder benefit may arise when a corporation provides a benefit to a shareholder (or a person related to them) that is not considered part of their employment income. How Does Subsection 15(1) Work? If […]
What is a Subsection 160(1) Assessment Under the Income Tax Act (Canada)?
Subsection 160(1) of the Income Tax Act (Canada) addresses situations where a tax debtor transfers property to a non-arm’s length party—such as a family member or related corporation—without receiving fair market value in return. In such cases, the Canada Revenue Agency (CRA) can hold the recipient of the transferred property liable for the transferor’s unpaid […]
What Is The Normal Reassessment Period?
The normal reassessment period, as defined by subsection 152(4) of the Income Tax Act (Canada), refers to the timeframe within which the Canada Revenue Agency (CRA) can audit and reassess a taxpayer’s return to adjust income, deductions, or tax payable. After this period expires, the CRA cannot reassess a tax return unless it shows that […]
Net Worth Audits: What You Need to Know
A Net Worth Audit is a type of tax audit conducted by the Canada Revenue Agency (CRA) to determine whether the income you report on your tax return aligns with your actual financial situation. This method is often used when the CRA perceives a mismatch between your reported income and your lifestyle or expenditures. For […]
What Is A Gross Negligence Penalty?
Under subsection 163(2) of the Income Tax Act (ITA), the Canada Revenue Agency (CRA) may impose a gross negligence penalty when a taxpayer, knowingly or under circumstances amounting to gross negligence, makes a false statement or omission in their tax return. The Excise Tax Act (Canada) contains a parallel provision (section 285) that authorizes the […]