| |
| |
|
|
Taxes |
|
Render Unto Caesar
Once a year Canadian taxpayers are required, by law, to file an income tax return in the prescribed form: $150(1). For individuals: $150(1)(d) ITA, they must do so by April 30 of the following year, provided that they owe any taxes or if they are served with a requirement to file: $150(2) ITA. There are other rules for corporations, trusts, partnerships and deceased individuals. If any taxpayer is required to file under $150 then they are also required to estimate the amount of the taxes payable: $151 ITA. Caesar's Reply Once the taxpayer has filed their return, the Minister of National Revenue ("MNR") shall examine the return and assess the tax for the year, the interest and penalties, if any, payable: $152(1) ITA. If the ministerial delegates don't agree with what the taxpayer has filed, then the MNR may at any time make an assessment, reassessment or additional assessment for a taxation year: $152(4) ITA. Not filing won't prevent the MNR from making an arbitrary assessment: $152(7) ITA. Some writers have concluded that Canada's self-assessment system is based on 'voluntary compliance;' however, CRA on its website, under "Tax Myths" (No 2) clarifies that the system is voluntary only in the sense that you can choose to comply. The consequences of not complying are entirely involuntary and Draconian. Non-Filing And Late Filing Not filing will, not surprisingly, have consequences, such the imposition of penalties: e.g., $$162(1), 163(1) ITA. Interest will also accrue (at a rate prescribed quarterly) and the taxpayer may be charged with non-filings as an offence: e.g. , $238(1) ITA. Whether a taxpayer can be convicted of the criminal offence of tax evasion, under $239(1)(d) ITA, if they haven't filed is problematic: R. v. Paveley (1976), 30 C.C.C. (2d) 483 (Sask. C.A.); but any taxpayer who find themselves in such circumstances should immediately retain legal counsel to take advantage of the voluntary disclosure programs offered by CRA; attempting to do so without experience legal assistance may prove risky. I Object! Under $165(1)(a)(ii) of the ITA, a taxpayer who has been assessed, or re-assessed, may file a Notice of Objection (Form 400A) setting out their reasons for objection and all relevant facts, within 90 days. $166.1(1) ITA does provide that were a taxpayer hasn't filed their Objection in time, that an application can be made to the MNR for an extension, but such wholly discretionary remedies are to be avoided if at all possible. Some of the most complex statutory provisions known to mankind are found in the ITA and taxpayers who endeavour to prepare and file Objections without professional accounting or legal help are too often engaging in a forlorn hope. If a taxpayer doesn't object then they lose their rights to complaint about that assessment. In other words, if you want relief, you are compelled to object. Charter $7 There is no provision in the ITA to allow taxpayers who have been charged with an offence under $239(1) ITA with an automatic extension, or a right not to appeal, pending the resolution of their criminal charges. This element of compulsion under $165 ITA, as it applies to taxpayers charged with offences under $239(1) ITA, "owing to the threat of imprisonment": R. v. Jarvis, [2002] 3 S.C.R. 757, may violate $7 of the Charter of Rights and Freedoms. Whether this potential violation of Charter $7 crystallizes depends on whether what access CRA Investigations has to the information contained in the Objections, and whether the prosecution 'could' use it. CRA's Policy CRA's publication RC 4213 "Your Rights" at page 9 of 13, under the caption "Your right to a formal review" states that, "?appeals representatives who were not involved in the original decision are available to conduct a formal and impartial review" and again under caption "How do we ensure redress processes are impartial?" where it states that, "[T]he Appeals Branch operates independently in relation to other CCRA branches;" "Appeals Branch staff have a mandate to resolve disputes?by impartially reviewing CCRA decisions" and "The representative who reviews your case will not have been involved in the original assessment?" The Concise Oxford Dictionary defines, "independent" as being "not depending on authority of? unwilling to be under obligation to others" and it defines "impartial" as being "?unprejudiced." From the language used CRA is warranting to taxpayers that they have these Rights. It is therefore CRA's public policy to consider its Appeals Division (where Objections are filed) to be "impartial" and "independent" of the rest of CRA - including Investigations. Most taxpayers would expect that CRA Investigations wouldn't have access to their Objections filed with Appeals, because communication between the divisions wouldn't be fair or impartial. CRA's Practices Violations of the Charter aren't established on CRA's best practice scenarios, they are based on what actually happens in practice. Since reassessments and the criminal charges will generally proceed hand in hand this problem will continue to reoccur. Taxpayers are compelled to file an Objection, or lose their rights; but if they do file then what they have filed can immediately be used by the prosecution against them. It may surprise taxpayers to know that CRA's Appeal Division has been known to give Objections filed by taxpayers charged under $239(1) ITA to the Investigation Division; it may astonish taxpayers to know that those materials were then used by the Crown against those taxpayers facing prosecution for tax evasion; but it should shock taxpayers to learn that when this violation of CRA's policy concerning Appeals "impartiality" and "independence" was brought to them, no one in CRA considered this the least bit objectionable - not locally and not in Ottawa. A Clear Violation How widespread the practice is, as yet, unknown but that it should be permitted to exist at all is, in this writer's opinion, a clear violation of Charter $7: R. v. White, [1999] 2 S.C.R. 417; Blencoe v. B.C. (Human Rights Commission), [2000] 2 S.C.R. 307. If you are aware of any such instances, please email TER at with the particulars. Staff Writer
MORE RESOURCES:
Taxes - Google News |
|
|
|
RELATED ARTICLES
How To Get An Extension To File Your Business Tax Returns Yes, the tax season is upon with the first filing date for some businesses being March 15, 2005. If you can't imagine getting your tax returns together by that date, you need not worry. Need a Copy of Your Tax Return Information? Taxpayers have two easy and convenient options for getting copies of their federal tax return information - tax return transcripts and tax account transcripts - by phone or by mail.A tax return transcript shows most line items from the tax return (Form 1040, 1040A or 1040EZ) as it was originally filed, including any accompanying forms and schedules. Tax Jokes and Quotes Do you realize that some tax forms ask you to check a box if you are BLIND?Quote: "Two years ago it was impossible to get through on the phone to the IRS. Now it's just hard to get through. Tax Deductions - Mr. C.P.A. Can I Deduct a Pizza? You Too Can Deduct Your Fun By Using Tax Tips Recently, I stumbled across a concept that could change your financial life. You can call it a paradigm shift or a new perspective or just a different way to look at things. Amending Procedural Laws for Collection of E-taxation The electronic transaction ordinance defines the certificated copies in which are to be presented for adjudication. Where any law requires or permits the production of certified copies of any records, such requirement or permission shall extend to print outs or other forms of display of electronic documents where, in addition to fulfillment of the requirements as may be specified in such law relating to certification, it is verified in the manner laid down by the appropriate authority. How To Get An Instant Pay Raise As a gentleman was leaving my class recently, he wanted me to clarify something I had said. He was making sure that he should take his four or five thousand dollar tax refund and pay off debt. History Of The Federal Income Tax The powers of Congress, and the limitations set upon those powers, are set forth in Article I of the United States Constitution. Section 8 specifies both the power to collect, "Taxes, Duties, Imposts and Excises," and the requirement that, "Duties, Imposts and Excises shall be uniform throughout the United States. Donating Cars To Charity - New Tax Rules On June 3, 2005, the IRS released guidance on charitable deductions for donated vehicles. The American Jobs Creation Act (AJCA) radically changed the amount of the deduction taxpayers can claim for their donated car. Access to E-records by Taxing Authorities: A Case for Pakistan (Part II) All tax authorities to e-commerce transactions should investigate the record retention requirements of each other's respective jurisdictions.In September 1998 Revenue Minister Dhalinal of Canada;"?Interpretation Circular 78-10RS and 779R (Book and Record Retention/Destruction) will be revised to explain the Department's views with respect to the electronic environment. Correspondence From The IRS - Yikes! It's a moment every person dreads. You pick up the mail and there is an envelope from the IRS. The Tax Man Cometh... To Search You're at your office, or home, and the doorbell rings - it's the Canada Revenue Agency ("CRA").The first thing to do is find out why they've come. Get Uncle Sam To Pay $36,000 For Your Childs Education! Let's assume that you would like to begin saving for your children's education fund. At the end of each year, for the next 8 years, you will contribute $2,000 into a Coverdell Education Savings Account (Education IRA), using your after-tax dollars. Access to E-records by Taxing Authorities: A Case for Pakistan (Part I) Background issues of access to recordsTo assess the records at hosted remote retained out of the jurisdiction of Pakistan root many legal issues which are needed to be addressed. Hereinafter there is description of the emerging legal issue of access to e-records. Taxation of Forgiven Debt: The 1099C & You Often people fall on hard times and stop paying on credit cards. After a while the account may go to an outside debt collector who might offer a settlement of the debt for 30-40% of theoriginal sum. What the Tax Software Companies Dont Want You to Know Haven't done your taxes yet? No problem. Now there is a new way you can use top tax software programs, like TurboTax and H&R Block, to get your taxes done quickly and easily. State Tax Information All states also have their own tax system. Typically there is a tax on real estate, and there may be additional income taxes, sales taxes, and excise taxes. 10 Thoughts on Tax Offer in Compromise Beware of advertisements that claim to settle tax debts for "pennies on the dollar". Check the Offer In Compromise requirements to see if it is right for you. Navigating The Internet Sales Tax Laws QUESTION: I have been contacted by my local city government to say that my business is scheduled to be audited to determine if I owe any sales tax from items purchased on the Internet. Can they really make me pay this tax? I thought you could buy things online tax free? -- Katie R. Render Unto Caesar Once a year Canadian taxpayers are required, by law, to file an income tax return in the prescribed form: $150(1).For individuals: $150(1)(d) ITA, they must do so by April 30 of the following year, provided that they owe any taxes or if they are served with a requirement to file: $150(2) ITA. Gambling Income and Expenses - Tax Requirements Hit a big one? With more and more gambling establishments, keep in mind the IRS requires people to report all gambling winnings as income on their tax return.Gambling income includes, but is not limited to, winnings from lotteries, raffles, horse and dog races and casinos.
|
|||||||||||||||||
