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CRA Agent saves the Day
I was assessed several years ago by mistake for tax on money that should have been a tax free inheritance. I didn’t file a Notice of Objection as I thought it could be fixed informally. Eventually, I started getting calls from a CRA Agent trying to collect the money. I explained I had spoke to someone about the mistake and this Agent just said I was out of time to Object and had to pay the money, even if it was wrong and there was nothing I could do. I was very upset and was astounded that the system could be this unfair. Then, by some miracle, a different Agent called me and when I explained the problem she said she totally understood and said it was clearly a mistake. Even though I was out of time, she said she would fix it right away. All because of the compassion of this Agent, what felt like an inevitable problem was fixed instantly.
Stay at home mom ends up with $15,000 penalty
I am a stay at home mom raising four lovely children and as I don’t work or have any income, I thought I didn’t need to file a tax return. I spoke to an accountant and he told me that I don’t need to file because I would be entitled to refunds. However, he then told me that because my husband and I have a house in joint names overseas that is worth more than $100,000, I would have to file an information return telling CRA about this. It’s a pretty simple form, just ticking boxes etc. I filed the information returns for the past 5 years and was astounded when I received a letter from the CRA claiming I owed nearly $15,000! Apparently the late filing penalty for each of the information returns was $2,500 per year plus interest. I have tried to get this reduced but the CRA just keep telling me it’s the law and the fact I didn’t know and didn’t have to file an actual tax return is irrelevant. I still can’t believe this is happening. Funny thing is, my husband got the same tax bill as he also didn’t know he had to file the information return. We’re probably going to have to sell the house just to cover the $25,000+ penalties assessed by the CRA. What a joke.
Auditor turns Nasty
My company was audited in 2005 and the auditor decided that we had been involved in a tax evasion scheme. She then bullied and intimidated me and several of my colleagues and misrepresented what we said to her in their interviews. She even told me that I was “going down” for tax evasion. We didn’t hear from her or the CRA until the end of 2007 when a search warrant was carried out on our business and homes. Since then, the criminal investigator who took over seems to have made it his life’s ambition to ruin us. He’s approached our clients, other colleagues and even told people to sign false and inaccurate statements. It’s been over three years since the audit and one year since the seizure and we have no idea what is going on. I can’t pay a re-assessment or fine because the CRA won’t issue one, claiming the investigation is ongoing. Each day I know my eventual tax bill is increasing with interest and I’m trying to carry on my life and not think about the threats. The delay and waiting is just awful.
Voluntary Disclosure goes Wrong
I filed a voluntary disclosure to declare some income I failed to report. Over two years later, I get a letter saying that on the same day I filed my disclosure, the CRA contacted an accountant from one of the many companies of which I am a Director to notify them the company was going to be audited. The CRA didn’t contact me and I don’t even have an income from this company but they claim that contacting the accountant was enough because it meant my disclosure was a reaction to the audit. Apparently it doesn’t matter that I was in another part of the country and had no idea that anyone called the accountant. So now, I have to appeal the huge penalties and interest charges the CRA are trying to make me pay because my disclosure was denied, including interest over the two years it took for someone to eventually write to me.
Missing cheque causes year of wasted time
I just registered for HST. I filed my first return and was entitled to a $35 refund. I never received the assessment or cheque. I noticed a mistake on my return and I should actually have paid $16 to the Government. So, I filed a correction explaining that I hadn’t received my assessment or cheque and that I had made a mistake. Next quarter I filed as normal and I when I received my assessment for the following quarter, it claimed I owed $35. I tried to call and talk to someone and they just said that the refund cheque was sent out and I had to pay it back. Even though I kept explaining I never received it, the lady just said I had to pay it. Eventually she said she would trace the cheque and I had to sign something to say I never cashed it. It’s been nearly a year and I’m still getting threatening letters saying I owe $35 and everyone I speak to says I should just give up and pay the $35.