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FAQ

Q: You are in Whitby and I am on the other side of Canada, can you service me from a distance??

A: The answer is Yes We Can! Because of our uniqueness and our proven track record, Canadians from all across Canada deal with us. Today’s modern technology, email, scanning, video conferencing, telephone, express post shortens the distance and makes the world flat. In reality, it is more important to deal with the right company than to deal with the closest company, unless of course they are one and the same.

Q: Am I alone out there? Are there other Canadians also humiliated by finding themselves in such trouble??

A: You are not alone, welcome to the world of millions of Canadians who have or are currently suffering in the same way you are.

Q: Does it seem to you that I am under some kind of an attack? Does it feel that I am being abused? After all, I never wanted to not pay my taxes. How is it that due to circumstances beyond my control, I find myself in deep trouble with the tax department?

A: If you feel attacked, it is likely true. If it feels unfair, it likely is. If you feel abused, you likely have been subjected to unfair treatment.

Q: Why is it that Canadians who lose their jobs, get behind, and cannot pay their taxes end up owing 3 times as much in total debt. Does it make sense to take a tax bill someone cannot pay and end up tripling it, at rates higher than a loan shark, when ?

A: If that was private industry it would be a crime. Compare that to the attack on the Cheque Cashing services like Money Mart, who, by the way, provide a valuable and needed service for the market, or else few people would deal with them. For sure, it is not about a fair system or a kinder, gentler Canada. To have an unfair, or impossible and unreasonable tax burden is not about compliance, it is about CRA collecting as much money as it can. CRA does not have to triple a tax bill that is already unpayable to get compliance from the tax payer, this is simply unjustified punishment.

Q: Why is it that taxpayers are assumed to be guilty and must prove themselves otherwise??

A: It looks to me like CRA does not know about, or ignores, the Charter of Rights. Who knows why Canadians allow this to continue.

Q: Why is it that CRA does not have hard and fast tests, instead of relying on the judgement of auditors??

A: Being that it would be very easy to create the tests, one has to assume it is because it gives discretionary power to the auditors thereby allowing them to collect more taxes.

Q: Why is it CRA allows the use of thermal paper, knowing that receipts will fade to blank in a matter of weeks if left on a busy person’s desk??

A: If CRA lost money because of it, thermal paper for receipts would not be allowed. My guess is that they have no reason to care. Why lose a good tool to deny legitimate expenses, when a faded piece of paper is not usable to prove an expense.

Q: Why is it that the tax laws, income tax forms, rules, and regulations change every year? Why has the tax game been allowed to get so complicated that even accountants have trouble understanding it??

A: A good guess would be that it keeps people confused, it allows for tax increases to not be noticed and it keeps people from learning how to properly do their own taxes.

Q: Why is it that there are RRSPs that are marketed to save taxes, yet the odds are the RRSP holder will pay more tax because of it??

A: It is in the government’s best financial interest to have a huge source of funds for them to borrow against and to ensure their ability to collect tax on the retirement savings of Canadians.

Q: Why does an RRSP have to be converted to a RRIF??

A: My guess is that it forces the RRIF holder to take out the money and add it to their other income. This creates more tax and enables government claw-backs. It is very good for CRA.

Q: Why do we tax retired people who have paid tax all their life??

A: We are not a kind Canada when it comes to our punitive tax regime.

Q: Why is it that auditors think they have the right to enter people’s homes??

A: This kind of stuff is not part of an auditor’s training. They are often shocked to learn they don’t have the right.

Q: Why is it that CRA staff hold what taxpayers say against them, yet will only be accountable for what they put in writing??

A: The system rule is to get as much as you can. It is not in CRA’s financial interest to help reduce Canadian tax burdens.

Q: Why is it that CRA attacks the spouses of taxpayers when one of the couple gets in trouble??

A: I have a new case where the client went bankrupt, and then one week before his discharge, they launch a serious attack on his wife. Why do they go after a spouses home, when the taxpayer cannot pay their own tax debt? It seems to me that there are no ends that CRA will go to get their “juice.” (Term used for Mafia interest).

Q: Why do they garnish wages when they know the taxpayer may be fired? Then at the same time slap a lein on the residence.?

A: It seems to be that there are no ends that CRA will go to get their “juice.”

Q: Why does CRA go to a delinquent tax payers rental properties and demand the tenants give CRA the rent??

A: Again, it seems to me that there are no ends that CRA will go to get their “juice.”

Q: Where does CRA get the right to march into a bank and demand money from a line of credit??

A: This is a great question. I would love to see a law suit develop on this issue. The banks hold our money in trust but will not resist a CRA demand to pay. Right or wrong, the bank employees are told to do whatever CRA wants.

Q: I did my books using an industry standard software program and now I discover that reports from that software do not satisfy the requirements for an audit. Why is it that all industry standard software is not good enough for an audit??

A: There is not an audit ready bookkeeping system on the market that would take the stress out of being audited. That is why we have written our own. There was no other way we knew of to do audit ready books.

Q: My accountant tells me that I need to pay some tax to avoid being audited, and it does really make a difference. Is that true??

A: The real question is “How much is some tax?” The answer is simple: take your gross income, minus personal tax credits and deductible expenses. If you don’t have a net taxable income you don’t have to pay “some” taxes.

Q: What does it mean when my accountant says “you have to fly below the radar”? And how do you measure “radar?”?

A: It means your accountant does not understand taxes. There is no such thing as tax radar. It is a fear-mongering statement designed to deprive you from understanding your own taxes. You hire an accountant to ensure you do not live in fear of audits and to see that your tax returns are properly done. Paying more tax then you owe does not protect you from an audit.

Q: Why are Accountants afraid of the tax department??

A: Accountants perform an invaluable role for those who can afford them. However they have a monkey on their back, and have a reasonable fear of the tax department based on joint and several liabilities for the tax returns they prepare. Don’t blame your accountant; blame the government that created the Canada Revenue Agency and partakes in the spoils of ruined Canadians. Accountants’ justifiable fear of CRA prevents them from aggressive defenses against CRA. Can you imagine the fear of having all their clients audited?

Q: Where do our tax dollars go??

A: We know that 10% is used to fund the CRA and the rest is up to the whim of the government, with little accountability.

Q: Why is it that CRA hires people to work on their technology under a strict code of silence??

A: Because they know it is not in their best interest for Canadians to know what goes on behind closed doors. It is interesting that CRA works for the Canadian population but is not accountable to us.

Q: Why is the interest charged on late taxes much higher than industry standards??

A: Interest is a huge source of income for CRA.

Q: Why does the CRA Ombudsman not have any power to discipline CRA??

A: Because it is more about marketing CRA as an accountable agency than it is about substance.

Q: Why, if auditors have the power of discretion, do they not have the power to make a deal regarding tax arrears based on what is possible other than bankruptcy??

A: Good question!

Q: Why has WSIB and CRA set up a ratting system of leads??

A: They are in cahoots to get as much money as they can. They also share other information.

Q: Why does your tax return ask if CRA can share information with Statistics Canada, but they go ahead and give your information out to WSIB??

A: They don’t consider our rights.

Q: Why is it that tax payments are not tax deductible??

A: That would be too kind. Just think of how much more revenue CRA collects because we must pay our taxes with after-tax dollars.

Q: Why is it that capital gains is added to our income, but capital losses can only be applied to capital gains??

A: Did I mention the words “punitive tax regime?”

Q: Why does CRA try to make directors into employees of their own companies??

A: They want the source deductions and want to reduce deductible expenses for the directors.

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