tag:blogger.com,1999:blog-4402283548766807872.post3540785583478372343..comments2024-03-14T19:35:14.456-04:00Comments on The Blunt Bean Counter: CRA Audit- Will I Be Selected?The Blunt Bean Counterhttp://www.blogger.com/profile/11358868550072516313noreply@blogger.comBlogger240125tag:blogger.com,1999:blog-4402283548766807872.post-47894227117897417972019-10-16T16:22:17.904-04:002019-10-16T16:22:17.904-04:00Hi Mark,
I am wondering if you can provide a brie...Hi Mark,<br /><br />I am wondering if you can provide a brief update on what incorporated companies with a sole shareholder who is the sole employee are being audited on both successfully and unsuccessfully by CRAAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-51832563931404879632018-01-26T12:39:03.948-05:002018-01-26T12:39:03.948-05:00Don't really have any as I said speak to your ...Don't really have any as I said speak to your accountant or engage one as u have somewhat complicated questions The Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-78414183890103899262018-01-24T20:27:12.238-05:002018-01-24T20:27:12.238-05:00Thanks, Mark about the response on banks.
Could ...Thanks, Mark about the response on banks. <br /><br />Could I receive some lead about the other questions (outsourcing to other countries to individuals)? It would be helpful.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-1238275126582682602018-01-22T18:19:54.118-05:002018-01-22T18:19:54.118-05:00Hi anon
I have not seen a client audited for chan...Hi anon<br /><br />I have not seen a client audited for changing banks, but I can't guarantee it would never be the case. Ask your accountant the other questions The Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-64178178889640229262018-01-22T01:37:06.595-05:002018-01-22T01:37:06.595-05:00Hi Mark,
Thanks for all this hard-work and making...Hi Mark,<br /><br />Thanks for all this hard-work and making difference to us!<br /><br />Some questions: <br />(1) If someone closes one bank account in Canada and transfers that money to another bank account in Canada (both are in the name of the same person and just are in different banks), and the amount is around CDN 8000, could that trigger an audit? <br /><br />Would you rather suggest to do this transfer in smaller amounts before closing the account?<br /><br />As a precaution if any CRA requirement arises in future, would keeping online account statements and online associated credit card statements of the last 6-7 years be sufficient? Or some other documents should also be taken from their online banking?<br /><br />(2) If as a self-employed person, someone outsources parts of assignments overseas, then which documents are usually used as a proof of expenses for the CRA?<br /><br />If some of these overseas parties are individuals, and don't have registered businesses in their respective countries, then which documents could serve as such proof of expenses for the CRA?<br /><br />Thanks for your time!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-36519072614564380932017-08-29T20:44:49.256-04:002017-08-29T20:44:49.256-04:00Hi Sarah
They dont. A net worth audit is usually ...Hi Sarah<br /><br />They dont. A net worth audit is usually only undertaken when they the CRA thinks there is significant tax under reporting or evasion. In those cases they may dig deeply into your personal life and ask you to justify how you live the way you doThe Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-67760839071466358332017-08-29T08:35:58.592-04:002017-08-29T08:35:58.592-04:00Dear BBC,
I'm new to your blog and am reading...Dear BBC,<br /><br />I'm new to your blog and am reading some of the posts in the right hand column (like this one).<br /><br />My husbands (small) corporation had a recent "mini-audit" for Travel. I'm pretty sure we were flagged because the amount was over $10,000 ($10,560 to be exact!). I had all the receipts handy, could justify my expenses and we got a reasonable agent so no changes were made but you better believe that I'll be watching the totals in the future and try to stay under $10,000 if I can.<br /> <br />In relation to #1, how would CRA know what sized home I lived in and what kind of car I drove? Not that they've be interested in my 960 square foot home and 12 and 14 year old vehicles. Big Brother really IS watching.<br /><br />Looking forward to reading more.<br /><br />Besos Sarah.Journeys of The Zoohttps://www.blogger.com/profile/06983303004148331623noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-184438988421426232017-01-04T15:41:01.973-05:002017-01-04T15:41:01.973-05:00Hi Anon
I had the same situation this year and th...Hi Anon<br /><br />I had the same situation this year and the CRA required the actual physical transit documents, so you may have an issue if you no longer have them. I cant tell you what to do, as I don't know how the CRA will react.The Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-34179434632685378982017-01-04T01:47:48.673-05:002017-01-04T01:47:48.673-05:00Hello,
Using TurboTax, I claimed the public amoun...Hello,<br /><br />Using TurboTax, I claimed the public amount twice (4080.00 was claimed when in fact it should be exactly half this). Not surprisingly, I was re-assessed. The problem is I m not able to find any of the transit passes as they were lost in a move this year. Luckily I have electronic records of the other deductions I claimed. My vehicle insurance is rated for a category that indicates I park at a train station and use the public train to get to work. This is about the only proof I can provide. Is it worth it for me to let CRA know or will this yield an audit/request to see transit pass documents from previous years as well?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-63510622607485817672016-11-30T14:25:06.373-05:002016-11-30T14:25:06.373-05:00Hi Dave:
The CRA has become sticklers the last fe...Hi Dave:<br /><br />The CRA has become sticklers the last few years for source documentation. I seem to recall a court case where a judge accepted credit card statements and bank statements, but the fight would not be worth it. You could try and Notice of Objection and see if the next level would be more forgiving, but probably not worth the effort as they will likely follow suit.The Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-74086094654670738252016-11-29T18:20:23.737-05:002016-11-29T18:20:23.737-05:00Hi Mark
I moved and some of my moving expenses ha...Hi Mark<br /><br />I moved and some of my moving expenses have been disallowed do to not providing source documentation. Although I have provided credit card statements and bank statements. CRA said this was not acceptable. Is there any actions I can take in this situation or am I SOL.<br /><br />Cheers<br />Dave<br /> Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-12446447877487873812016-11-20T16:51:57.825-05:002016-11-20T16:51:57.825-05:00Hi Ronaldo
Unfortunately I do not provide specifi...Hi Ronaldo<br /><br />Unfortunately I do not provide specific personal tax advice on the blog and even if I did your question is too complex. You should speak to your accountant one engage one , sorry The Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-19598718093862547852016-11-19T12:09:39.672-05:002016-11-19T12:09:39.672-05:00HI Mark
i was trading some options (only basic ca...HI Mark<br /><br />i was trading some options (only basic calls and options and not writing of contracts shortest holding period maybe two weeks at least but almost all 30 days to 20 months) around 60 this year almost all in the USA section of my smallest of 3 investment accounts (with tfsa and registered retirement account then 5). I have not been audited but now am nervous as previously i had thought only the particular trade or trading account was at jeopardy) and there will probably be a loss or tiny profit (i can trigger some new losses if it would help to have a loss but thought i should cease trading much at all until next year as i wind down on options unless very few in form of long leaps and mainly buy for deciding to whether or not to buy into a company long term)this year on completed sales, although some definite profit in first of 3 years but no homeruns. If i filed a T123 now for my Canadian holding would that protect my capital gains tax status on the Canadian side (i have large unrealized captial gains now and past large capital gains over the decades)assuming that if CRA declares a trader then everything in all accounts are taxed as business income? If i file a T123 is it retroactive as well as futuristic for my Canadian holdings? and finally is the filing of T123 a red flag at CRA to check everything and set off an audit but is it worth it to at least save the Canadian side as capital gains trading. thks.Ronaldohttps://www.blogger.com/profile/00965545712007105414noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-84986704458457514352016-10-10T10:29:13.796-04:002016-10-10T10:29:13.796-04:00Hi Gerry
You should consult with your accountant ...Hi Gerry<br /><br />You should consult with your accountant or engage one. The CRA has been using personal records with more regularity in recent years as discussed in this blog post I wrote:<br /><br />http://www.thebluntbeancounter.com/2016/02/cra-audit-update-for-individuals-and.htmlThe Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-18822295440268502632016-10-06T03:32:26.270-04:002016-10-06T03:32:26.270-04:00Hi Mark
I have a very strange situation. I was co...Hi Mark <br />I have a very strange situation. I was contacted for an audit. The audit was completed and I was told I did not declare a large sum of money in 2011 2012 and 2013. I know this not to be true as I know exactly what I made and that exact amount was declared. When confronting the agent about where she was getting this sum of money, she did a song and dance citing mathimatical equations and test formulas that I failed promting a deeper look into my finances. This went on for hours until finally she said that the money that they claim was not reported was money deposited into my daughters account. Please note that my daughter was 24 in 2011 25 in 12 and 26 in 13. She was going to school but living on her own as well as working. She is an adult and responsible for her own money. I have no knowledge of her finances and I am not privy to them as well. Yet this agent claims that since she was living with us, which she was not, her income is my income and I am responsible for any funds going in and out of her bank accounts. My daughter is an adult and may I add that this agent never received any authorization from her to reveal or discuss her finances with me, which she did and was willing to send me her file.<br /><br />I told the agent to remove any of my daughters finances from her working papers and do the audit with my bank and financial information only. She agreed but tried to stick both her working papers one with my daughters accounts and one with only mine. I told her I have nothing to do with my daughters bank accounts and not send those to.<br /><br />This does not smell right. This is utterly wrong, unethical, immorral and unconstitutional.<br /><br />Is this really a practice and has the agent broken the law.<br /><br />Their objective was to deplete a $96000 loss I have on file. My books are complete and I keep a record of everything. She openly admitted that it is concerning to them how we survive on next to nothing. They can't find anything so they resorted to the above tactic. <br /><br />By doing this, The large sum in 2011 that they claim was unreported income would practically cut our loss in half and then the remainder of my loss would be applied to bring down the unreported income basically zeroing my 96000 loss putting us in a higher tax bracket prompting a large fee owed for taxes on the three years.<br /><br />A classic example of getting through the back door what you can't through the front.<br /><br />This is fraud. They are actually using another adults banking information to raise my taxes. I should add that my daughter has her taxes done every year so they are also trying to double dip. <br /><br />I have recorded all calls with the agent from day one. Her whole sorted fraud is documented with fact not hearsay.Anonymoushttps://www.blogger.com/profile/11794727959674374315noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-3531800904144983832016-09-19T20:07:16.565-04:002016-09-19T20:07:16.565-04:00Hi Anon
As I said the CRA could levy a penalty (g...Hi Anon<br /><br />As I said the CRA could levy a penalty (gross negligence) but I would be surprised if they did on such a small amount. Hope I am right for your sakeThe Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-27934821330397375342016-09-19T16:53:49.934-04:002016-09-19T16:53:49.934-04:00Thank you so much for taking the time to respond. ...Thank you so much for taking the time to respond. I tried to call some lawyers to get a consult and they were very disimissive (I was willing to pay for consult) but said I would likely be charged with the gross negligence penalty. I assumed that they would see so many errors and automatically audit the last ten years and charge me with tax evasion, as technically I declared more deductions than I should have....I haven't slept in about a month. <br />Anyway, thank you again.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-47557825098210949702016-09-19T15:32:12.037-04:002016-09-19T15:32:12.037-04:00Hi Anon
It happens all the time. I have not seen ...Hi Anon<br /><br />It happens all the time. I have not seen anything other than a reassessment of the tax and interest owing (although the CRA could possibly levy penalties) However,if the amount was say $10k wrong, I could see the CRA possibly levying penalties.The Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-21300534091311879922016-09-18T19:30:00.544-04:002016-09-18T19:30:00.544-04:00Hi Mark,
This blog is fantastic. This is such a g...Hi Mark,<br /><br />This blog is fantastic. This is such a great resource for people who have specific questions. <br /><br />I was selected for a processing review for two items which I actually did make mistakes on. When I was preparing the documentation I noticed two more miscalculations on deduction errors. I pointed this out in my review response and supplied all correct receipts. Any inkling on repercussions? It looks like it will be about $1000 that I owe. <br /><br />Have you encountered anything like this before? I am petrified of being charged for tax evasion. I don't know what to expect. It has been three weeks since I sent in the paperwork and have not heard anything back. <br /><br />Thank you again for the time you take to respond to people.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-1726659276061190442016-08-14T21:16:08.003-04:002016-08-14T21:16:08.003-04:00Hi Andy
Sorry, this is a matter for a family lawy...Hi Andy<br /><br />Sorry, this is a matter for a family lawyer, I dont know the answer. The Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-82988377736342120462016-08-14T16:08:52.599-04:002016-08-14T16:08:52.599-04:00hi mark
my ex husband is a millionaire and he is h...hi mark<br />my ex husband is a millionaire and he is hiding a lot of money and assets he has an accountant that helps him with that . he is not paying proper child support for years now. can i go after him by auditing all his assets and businesses and will CRA be successful at digging up anything he has hidden? and how many years back can i go for retro-active pay and monthly child support? andyhttps://www.blogger.com/profile/03205342030252976451noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-30066156383284277852016-06-23T13:21:59.449-04:002016-06-23T13:21:59.449-04:00Typically this is not an issue. The CRA will just ...Typically this is not an issue. The CRA will just deny the $80. See if you can get a replacement from providerThe Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-81887540528019830512016-06-23T12:55:48.274-04:002016-06-23T12:55:48.274-04:00Have an audit on my medical expenses this year. ...Have an audit on my medical expenses this year. Had over 8500. in expenses but for the life of me can't find an 80 expense I claimed. Is this going to be a problem?<br />Anonymoushttps://www.blogger.com/profile/10311889747929280426noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-75481841115767671542016-02-14T18:57:32.230-05:002016-02-14T18:57:32.230-05:00Hi Blondie
This all seems a little strange to me ...Hi Blondie<br /><br />This all seems a little strange to me and I could not comment without all the facts. <br /><br />Audits can take a few months as there is an initial review and then often a back and forth of documents.The Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-16430433004153563272016-02-14T12:54:50.063-05:002016-02-14T12:54:50.063-05:00This might be a fairly odd question but I am conce...This might be a fairly odd question but I am concerned<br />I haven't friend that works for a medium size plumbing company, he originally said that it would be given as a gift for the work done in my house. He had mentioned that audit was there in October 2015, and that they are still there now (Feb 2016) he is saying that I will now have to pay at cost for services because of audit<br />My questions are: is this true, do they really care and hassle for jobs do effete of charge? <br />How long will audit generally take and be reviewing a company? Blondie1981https://www.blogger.com/profile/00933616345358092691noreply@blogger.com