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Republish Reprint Terence Corcoran  |  March 23, 2015  | Last Updated:  Mar 24 4:30 PM ET More from Terence Corcoran  |  @terencecorcoran Mark van Manen/PNG Staff Photographer Alberta’s budget, coming Tuesday, is almost certainly going to contain tax increases to offset falling corporate taxes.   Twitter   Google+   LinkedIn   Email   Typo?   More “Barring a dramatic change in thinking, taxpayers of Ontario and most of the provinces face continued high tax rates and the prospect of tax increases. “ Across this fair land spring seeds are being sewn for a tax revolt. In three provinces – Quebec, Alberta and B.C. – increases in sales taxes are on the agenda. Along with Ontario, Canada’s provinces are in various stages of fiscal decrepitude, collectively borrowing billions to stave off the wolves at the door. There is only one way out: spending cuts. But politicians know of few alternatives b...

Tax evasion scheme results in conditional sentences and $98,233 in fines Halifax, Nova Scotia, January 9, 2015...  This week, Mary Emily Samson, a former Dartmouth resident, and George Mitchum, of Yarmouth, were fined a total of $98,233 and each given a conditional sentence order. On January 5, Ms. Samson was found guilty of fraud over $5,000 under the Criminal Code, for her role in a false invoice scheme. She was fined $20,998. On January 8, Mr. Mitchum entered guilty pleas for his part in the scheme and was fined $77,235 for one count of fraud over $5000 and one count of tax evasion. A Canada Revenue Agency (CRA) investigation revealed that Ms. Samson and Mr. Mitchum participated in an ongoing fraud scheme from December 2005 to January 2008. During the course of her participation in this fraud, Ms. Samson created 114 false invoices, amounting to a total of $968,384. These invoices made it appear that her now defunct company, Virgin Water Fisheries Limited, was selling lobs...

Failing to file a tax return will cost you April 20, 2015…  The Canada Revenue Agency (CRA) announced today that for the period December 1, 2014 to April 20, 2015, a total of 10 Ontario residents were convicted and sentenced for failing to file corporate, personal and/or GST/HST returns. The courts levied a total of $97,000 in fines and ordered that all returns be filed. In particular, the following individuals pleaded guilty and were sentenced for failure to file tax returns: Name of Taxpayer Clay Canada of Mississauga Donald MacMillan of Alexandria Jacqueline Tobin of Inkerman John Baerg of Brampton John Mesquita of Ottawa Kent Scott of Prescott Laura-Lee Watling-Scott of Prescott Michael Moldenhauer of Mississauga Scott Whitman of London Sutharsan Ambalavanar of Ajax Total Fine $1,000 $2,000 $3,000 $20,000 $2,000 $10,000 $3,000 $49,000 $3,000 $4,000 The preceding information was obtained from the court records. “Canadian taxpayers must have confide...

Toronto resident charged with defrauding the CRA Toronto, Ontario, July 28, 2015...  The Canada Revenue Agency (CRA) announced today that on July 23, 2015 a warrant of arrest was executed against Kevin Ekow Plange, of Toronto, Ontario. Mr. Plange appeared at the Old City Hall Court House in Toronto where he was charged with committing an offence contrary to Section 380(1)(a) of the Criminal Code . It is alleged that Plange, by deceit, falsehood or other fraudulent means unlawfully did defraud or attempt to defraud the Government of Canada of money in an amount greater than five thousand dollars ($5,000), by preparing and submitting false Direct Deposit Request forms pertaining to GST/HST, Payroll and/or Corporation Income Tax, to the Canada Revenue Agency to change the direct deposit information of corporations, and as a result redirected or attempted to redirect GST/HST refunds and other payments properly payable to corporations, to bank accounts controlled by him. Plange a...

Chatham-Kent resident fined and jailed for tax evasion Chatham, Ontario, April 29, 2015 … The Canada Revenue Agency (CRA) announced today that on April 28, 2015, Anthony McPhail, of Chatham-Kent, Ontario, was sentenced in the Ontario Court of Justice in Chatham, Ontario, to 18 months in jail and a fine of $323,402.  On February 9, 2015, McPhail pleaded guilty to two counts of evading income tax and four counts of making or participating in the making of false statements in the income tax returns of individuals to obtain or claim unwarranted tax refunds under the  Income Tax Act . The fine represents 100% of the federal income tax evaded. A CRA investigation revealed that McPhail, a tax preparer and proprietor of Valet Vending Services, created a scheme whereby he advised his clients they could make money by buying and reselling chocolates to benefit charities. The CRA investigation revealed that no charities benefited from these sales. McPhail then prepared income tax ret...

Minister Findlay teams up with industry leaders to tackle the underground economy Minister also highlights Economic Action Plan 2015 investment to expand Canada Revenue Agency (CRA) Underground Economy Specialist Teams  April 28, 2015 Ottawa Canada Revenue Agency (CRA) The Honourable Kerry-Lynne D. Findlay, P.C., Q.P., M.P., Minister of National Revenue, met with members of the Underground Economy Advisory Committee yesterday on actions and opportunities for collaboration to tackle the underground economy (UE) across the country. The Minister also highlighted the Government’s commitment through Economic Action Plan 2015 to invest $118.2 million over five years to enhance the CRA’s audit capacity by expanding its Underground Economy Specialist Teams. These new specialist teams will use advanced data analysis to identify and adopt new approaches to combat the underground economy. Working with provincial colleagues, the teams will target UE activity in high risk sec...

Under the  Income Tax Act  and the  Excise Tax Act , persons convicted of tax evasion can face fines ranging from 50% to 200% of the taxes evaded and up to two years imprisonment. Further, upon conviction on an indictment, a fine ranging from 100% to 200% of evaded taxes and up to five years in imprisonment can be imposed. If convicted of fraud under Section 380 of the  Criminal Code of Canada , an individual can face up to 14 years in jail.

Canadians can immediately take advantage of the proposed $10,000 Tax-Free Savings Account annual contribution limit April 24, 2015 - Ottawa, Ontario - Canada Revenue Agency The Honourable Kerry-Lynne D. Findlay, P.C., Q.C., M.P., Minister of National Revenue, and the Honourable Joe Oliver, Minister of Finance, are advising Canadians that the Canada Revenue Agency (CRA) is allowing individuals to immediately benefit from the proposed increase to the Tax-Free Savings Account (TFSA) annual contribution limit announced in Economic Action Plan 2015. Economic Action Plan 2015 proposes to increase the TFSA annual contribution limit from $5,500 to $10,000, effective January 1, 2015. Canadians can immediately start contributing to their TFSA up to the proposed $10,000 annual contribution limit. This proposed measure is subject to parliamentary approval. Consistent with its standard practice, the CRA is administering this measure on the basis of the Budget announcement. Financ...

Failing to file a tax return will cost you April 20, 2015…  The Canada Revenue Agency (CRA) announced today that for the period December 1, 2014 to April 20, 2015, a total of 10 Ontario residents were convicted and sentenced for failing to file corporate, personal and/or GST/HST returns. The courts levied a total of $97,000 in fines and ordered that all returns be filed. In particular, the following individuals pleaded guilty and were sentenced for failure to file tax returns: Name of Taxpayer Clay Canada of Mississauga Donald MacMillan of Alexandria Jacqueline Tobin of Inkerman John Baerg of Brampton John Mesquita of Ottawa Kent Scott of Prescott Laura-Lee Watling-Scott of Prescott Michael Moldenhauer of Mississauga Scott Whitman of London Sutharsan Ambalavanar of Ajax Total Fine $1,000 $2,000 $3,000 $20,000 $2,000 $10,000 $3,000 $49,000 $3,000 $4,000 The preceding information was obtained from the court records. “Canadian taxpayers must have confide...

1. Fix errors from prior years  . You can recover missed tax refunds and credits by filing an adjustment to prior filed returns up to 10 years back in the case of the federal T1. You can even do this online. I have seen so many good news stories: The most heartwarming from an exhausted widow who had heard me speak about the disability tax credit. Caring for her cancer-stricken husband over many years left little time to review tax savings opportunities. She claimed for previous years to correct for the missed credit and received a five figure bonus that helped pay for funeral expenses. Think about what lucrative deductions and credits might you have missed in filing past returns? 2. Report all income, the right way  . Taxpayers make lots of mistakes reporting their income, from double reporting taxable benefits that are already included in Box 14 of your T4 slip to failing to report tips and gratuities. Common problem areas also include the reporting of foreign pensi...

Richmond Hill resident fined for false business losses Newmarket, Ontario, April 17, 2015 ...  The Canada Revenue Agency announced that on April 14, 2015, John (Giovanni) Di Mauro of Richmond Hill, Ontario, pleaded guilty in the Ontario Court of Justice in Newmarket to one count of attempting to obtain income tax refunds to which he was not entitled under the  Income Tax Act . Di Mauro was fined $89,323 and was given one year to pay the fine. A CRA investigation revealed that Di Mauro reported false business losses totalling  $513,344  on his personal income tax returns for 2006, 2007 and 2008. As a result Di Mauro attempted to claim income tax refunds totalling  $178,646 . The CRA did not issue any refunds. The preceding information was obtained from the court records. "Canadians have to be confident that the tax system is fair," said Vince Pranjivan, Assistant Commissioner of the Ontario Region. "That's why the Agency works to ensure that the vast maj...

http://www.theglobeandmail.com/report-on-business/small-business/sb-tools/common-tax-mistakes-entrepreneurs-make/article24009640/

2014 income tax season: 11 questions you are afraid to ask If you lie on your income tax return, what’s the worst that could happen? We kick off 2014 tax season with the answer to that and other delicate questions. It’s never wise to fib, fiddle, or fake on your tax return. The longer you get away with dodging tax, the worse it will be when you finally get caught. But who doesn’t think about accepting cash and not declaring it, or exaggerating write-offs? Well, it’s not worth it if you are caught. Before you travel down that road, read the answers to these and other related questions. What happens if I don’t report my income? If your income is low, you could miss getting money from the government to raise children, or to help pay rent, food, sales taxes, etc. If you owe taxes, and fail to file a tax return, you will be charged interest plus a penalty equal to 5 to 17 per cent of taxes owed. If you are convicted of evading taxes, you might get free room and board — in j...

Penalty for Tax Evasion in Canada Most people file their annual return honestly and only take deductions and credits made available by the Income Tax Act. Unfortunately, some individuals and businesses evade taxes, and there are legal consequences for such actions. Anurag Gupta, a Toronto business and tax lawyer with the law firm of Anurag Gupta Professional Corporation, says that evaders may face criminal penalties including jail time and fines up to "200 percent of the amount" that the offender may have been trying to avoid. Ignoring the Law Tax evasion occurs when an individual or business ignores tax laws to avoid paying taxes. The Canada Revenue Agency explains that evaders may report less income than they actually earn or state that their deduction amounts are higher than allowed. If a person earns income not documented by an employer, such as cash or self-employment income, and does not report that income to the CRA on his return, he is committing tax ev...

Tax evasion scheme results in conditional sentences and $98,233 in fines Halifax, Nova Scotia, January 9, 2015...  This week, Mary Emily Samson, a former Dartmouth resident, and George Mitchum, of Yarmouth, were fined a total of $98,233 and each given a conditional sentence order. On January 5, Ms. Samson was found guilty of fraud over $5,000 under the Criminal Code, for her role in a false invoice scheme. She was fined $20,998. On January 8, Mr. Mitchum entered guilty pleas for his part in the scheme and was fined $77,235 for one count of fraud over $5000 and one count of tax evasion. A Canada Revenue Agency (CRA) investigation revealed that Ms. Samson and Mr. Mitchum participated in an ongoing fraud scheme from December 2005 to January 2008. During the course of her participation in this fraud, Ms. Samson created 114 false invoices, amounting to a total of $968,384. These invoices made it appear that her now defunct company, Virgin Water Fisheries Limited, was selling lobs...