Feigenbaum Law

audit

Audit

Corporate Tax Planning

CRA Targeting Contractors Buying Supplies at Hardware Stores in New Audit

We’ve previously blogged about various actions the Canada Revenue Agency (CRA) has taken to crackdown on alleged tax evasion in particular industries, including in the bar and restaurant industry. This week, we continue our blog series by looking into a new audit the CRA is undertaking. This time, the agency is undertaking a review into general contractors and those working in the home improvement sector.  This new audit represents the latest in a… Read More

Corporate taxes

Corporate Tax Planning

CRA Report: Canadian Companies Avoided Billions in Taxes

According to a report recently released by the Canada Revenue Agency (CRA), Canadian corporations avoided around $11 billion in corporate taxes in 2014 (between $2.7 billion and $3.5 billion for small companies, and between $6.7 billion and $7.9 billion for bigger companies). The report marks another measure in a series of actions taken by the CRA to look into tax avoidance by corporate and personal tax-payers in Canada, as we’ve previously written about. Read More

Cryptocurrency

Bitcoin

Canada Revenue Agency Auditing Cryptocurrency Investors

Last year, we wrote about how Bitcoin and other cryptocurrency is treated by the Canada Revenue Agency (CRA) for tax purposes and what impact an investment in crypto might have on a Canadian taxpayer’s taxes.   Now, crypto and the CRA are back in the news as the agency continues to finesse its approach to digital currency and adapt to rapidly changing realities. According to a cryptocurrency journalist writing for Forbes magazine,… Read More

Office towers seen from below

Corporate Tax Planning

Canada’s Biggest Loyalty Points Company Facing Significant Tax Reassessment

A Canada Revenue Agency (CRA) audit of Montreal based Aimia Inc. (Aimia) has concluded. Aimia, which is responsible for customer loyalty programs worldwide, may now be facing a large tax bill. Aimia – An Overview Aimia Inc. which describes itself as a “global data-driven marketing and loyalty analytics company” providing “clients with the customer insights they need to make smarter business decisions” and also “partner[ing] with companies to help generate, collect and… Read More

Corporate taxes

Corporate Tax Planning

Auditor General: CRA Not Treating All Taxpayers Equally in Audits and Reviews

According to a new report by the federal Auditor General, the Canada Revenue Agency (CRA) is not treating all taxpayers equally when it comes to auditing or reviewing tax files. Taxpayer Bill of Rights The Canada Revenue Agency has a Taxpayer Bill of Rights which is intended to build on the CRA’s corporate values of professionalism, respect, integrity, and collaboration and further, is intended to protect taxpayers from inappropriate treatment and to protect… Read More

Restaurant

Corporate Tax Planning

CRA Reveals Continued Crack Down on Restaurant Industry

CBC News reported this week that the Canada Revenue Agency (CRA) will be reviewing data on beer, wine, and liquor sales in an attempt to crack down on tax avoidance in the bar and restaurant industry.  As we blogged about earlier this year, this is not the first time that this sector has come under scrutiny. High-Risk Sector The CRA has said that it has identified the restaurant industry… Read More

Corporate taxes

Litigation

The Standard of Conduct the CRA Must Uphold in an Audit

Last week, we reviewed a decision in which the Canada Revenue Agency (CRA) was ordered to pay $5 million in damages after a court found that the Agency had engaged in a number of questionable practices during the “Billionaire’s Audit” targeting high net worth Canadians in the mid-2000’s. This week we explore the standard of conduct that ought to apply during any audit undertaken by the CRA. The Quebec Superior Court examined… Read More

Audit

Litigation

CRA Ordered to Pay $5 Million After “Unreasonable” Audit

The Canada Revenue Agency (CRA) was recently ordered to pay damages of almost $5 million after two men representing a group of taxpayers sued the agency claiming that the CRA engaged in “abusive” practices during an offshore tax audit which the men were caught up in. In a lengthy decision supporting the damages order, the Quebec Superior Court admonished the CRA for a number of questionable practices that took place during the… Read More

Sports & Entertainment

Prominent Canadian Olympic Athletes Owe Millions in Back Taxes

According to the Canada Revenue Agency, Donovan Bailey, who won the Gold Medal for the 100m sprint at the 1996 Summer Olympics in Atlanta, Georgia, owes approximately $2.3 million dollars in unpaid taxes. Kate Pace Lindsay, who competed in three Winter Olympics and was ranked number one downhill skier in the world in 1993 also owes significant sums to the government. Both athletes were advised by the same tax lawyer. What Happened? The Toronto Star… Read More

Northern

Personal Tax Planning

Government to Review “Abnormal” Number of Tax Audits of Taxpayers in Northern Canada

CBC News reported this week that Northerners living in Nunavut have been overly reassessed (i.e. audited) on their income taxes. National Revenue Minister Diane Lebouthillier visited Iqaluit in April to meet with territorial and business leaders. A prominent topic of discussion during the meetings was the number of Nunavut residents (Nunavummiut) who are reassessed on an annual basis. Since then, Lebouthillier has promised to take a closer look at this matter and… Read More