Recently, the CRA went into the Federal Court of Appeals (FCA) to compel Rona, Inc. (known for their home improvement chain Rona) to release contact and business information of unnamed contractors that had purchased supplies from 57 Rona hardware stores across Canada from 2012-2015. To us, it appears that CRA may have a special project underway to flush out home improvement contractors that are currently operating in the underground economy. We do not have any direct information, but it is likely that Home Depot and Lowe’s may also be targeted.
The information was compiled through the retailers’ “loyalty programs” which require personal and business information, and credit card information. The FCA considered CRA’s position and ordered Rona to comply.
If you believe that you may be one of those affected, please contact one of our Tax Professionals right away since there is an opportunity to take advantage of the Voluntary Disclosure Program (VDP). Restrictive changes to the VDP are due to be implemented on January 1, 2018.
Reference: (Rona Inc. c. Canada (Revenue National), 2017 CAF 118)
Roman Belenky, CPA, CGA, BAS, is a supervisor at Sloan Partners focusing on tax planning and compliance. Feel free to contact Roman email@example.com or call 416-665-7735 (ext. 227) for all of your tax planning needs.
Disclaimer: This article is intended for educational and informational purposes only. It is not intended in any way whatsoever to provide tax advice. The reader should be aware that legislative changes have been proposed and are subject to change. None of the persons involved in the preparation of this article accepts any responsibility for its contents or the consequences that arise from its use.