In a recent news release (June 2019) Canada Revenue Agency commented on something they refer to as a “tax gap”. According to CRA, the gap is the amount of unpaid income tax. The recent report focuses on the 2014 tax year and their estimate that between $9.4 billion and $11.4 billion is owed to them by companies that are not complying with the tax laws. That’s the reason that the 2019 Federal Budget allocated another $150.8 million over 5 years to hire additional auditors, build technical expertise in sectors of emerging risk, and create new data mining teams. See CRA News
What this means to our clients and our Firm is that there will be an increasing level of inquiries, investigation projects and audits as CRA attempts to extract as much as possible from taxpayers. We are also expecting that one of the results will be to deny most adjustment requests and audit submissions in the first instance, forcing taxpayers to the Appeals level or even Tax Court. CRA is hoping that Companies will find that paying the tax (even if they’re right) will be less costly than paying professional fees to fight it.
We’d be pleased to speak with you about reducing exposure to CRA’s aggression and how to protect yourself and your Company from incurring excessive professional fees to challenge CRA.
Make an appointment today with a member of the Sloan Partners Tax Team. Your initial consultation is always free!
Jerry Paskowitz, CPA, CA, CMC, is a Partner with Sloan Partners with over 30 years’ experience in all tax and financial matters. Get in touch with Jerry by email or phone 416-649-7702.
Shawn Bausch, CPA (CA), BBA is a tax manager at Sloan Partners. Contact Shawn by email or call 416-665-7735 (ext.335).
Roman Belenky, CPA, CGA, BAS, is a supervisor at Sloan Partners. Contact Roman by email or call 416-665-7735 (ext. 227).