The Canada Revenue Agency (CRA) imposes significant fines – known as promoter penalties (formally known as third-party civil penalties) – on tax shelter promoters and advisors. These penalties target individuals who make false or misleading statements in tax schemes or who assist others in filing improper tax returns. Any person involved in developing or marketing a tax shelter can face steep penalties for false statements or misuse of the tax shelter identificatio…
Multinational companies operating in Canada must navigate complex transfer pricing rules to satisfy the Canada Revenue Agency (CRA). These rules follow the OECD’s arm’s length principle, meaning transactions between related entities must be priced as if the parties were unrelated. Non-compliance can trigger costly audits, adjustments, and penalties. This article summarizes the CRA’s expectations around intercompany pricing under Canadian federal law. At Taxpayer La…
Selling a home in Canada involves crucial tax considerations – particularly the principal residence exemption (PRE), which can eliminate or reduce capital gains tax on the sale of a qualifying principal residence. If a property meets the principal residence criteria for the years you owned it, the resulting capital gain can generally be excluded from your taxable income. This guide explains the PRE rules, how to claim the exemption correctly, the reporting obligati…
Under Canadian tax law, failing to report all your taxable income – whether by accident or on purpose – comes with serious consequences. The Canada Revenue Agency (CRA) actively monitors and cross-checks tax filings to catch undeclared income. If you discover that you left income off a past return, it’s crucial to address the issue proactively to minimize penalties and legal risks.
What Is Unreported Income?
Unreported income refers to any taxable earnings th…