We have that list of tax credits for you here today – including one new credit for the 2012 tax year: the Family Caregiver Amount.
Filed under: Taxes
Sometimes, that may be more. On occasion, it may even be less. If it is substantially more, you'll be able to negotiate a payment arrangement that may spread out over a reasonable period: a year is not unheard of.
There are four main groups or criteria that the CRA searches for, when looking for returns to audit:
- Lists of tax returns generated by comparing financial information of people in similar occupations,
- A lot of non-compliance found within a specific group may result in some members of that group being chosen for a closer look,
- People associated with someone whose return is under review (for example, a business partner) and
- Leads from other audits, investigations, and outside sources
Crocheting stuffed sheep as a novelty item in your spare time? Trying to sell a few on eBay whilst declaring your basement a sheep-making facility and reporting losses from your "business" for multiple years? You might as well paint "audit target" on your forehead. You must have a reasonable expectation of a profit and the CRA will want to see a profit eventually or those "losses" will trigger an audit.
Tax season can be a difficult time.
Finding the right receipts, figuring out what to include in your return and even trying to decide when you should do it is enough to make even the sanest person rip out their hair.
We want to try and create a stress-free tax season for you and have decided to team up with H&R Block Canada to offer you a one-on-one live chat session with Cleo Hamel, H&R Block Canada's leading tax analyst.
She'll answer all your questions and share her tips for getting you the highest returns. And, best of all, it's free!
Head back to this page this Thursday, March 22 between 12 p.m and 1 p.m. to get all of your questions answered and so much more by Hamel.
According to Statistics Canada's most recent numbers, Canadian tax filers reported making charitable donations surpassing $8.6 billion in 2007, up 1.4% from 2006.
But Christmas is also a time when some people choose to take advantage of others, and it's more important than ever to be alert and ensure that your hard earned donated dollars are going to people who really need it.
The Canadian Broadcasting Corporation recently reported that a Toronto poverty group called the Metro Street Focus Organization recently had its charitable status yanked by the Canada Revenue Agency. Audits of the charity showed they had issued tax receipts for donations totaling $1.16 million for the 2006-07 tax year. But an audit showed that a significant portion of the cash given to the organization was used for the personal expenses of the executive director, including payment for educational studies, and repair and utility bills of the executive director's home.
Filed under: Taxes
Imagine this: You file your taxes, Canada Revenue Agency (CRA) disagrees with your return, you file an appeal, and CRA denies it. You ask for an explanation of the appeal decision, and you're stonewalled. You're told that if you want an explanation, you can go through the lengthy process of filing an Access to Information request. Are you stressed just thinking about it? You betcha.
According to a report filed yesterday by the federal Taxpayers' Ombudsman, that's exactly how CRA routinely deals with taxpayers when they request explanations of appeal decisions, with officials typically refusing to justify their decisions in writing. And that needs to change, Ombudsman Paul Dubé says.
In keeping mum on appeal decisions, CRA says it's trying to maintain taxpayers' confidentiality. Mr. Dubé calls this thinking "misguided." After all, when a taxpayer requests an explanation of why their appeal has been denied, they're looking for information only on their own case file, so confidentiality shouldn't be an issue.