fstaxsolutions

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...

http://www.cra-arc.gc.ca/nwsrm/cnvctns/on/on140708-eng.html

Mississauga resident fined for not filing tax returns Brampton, Ontario, July 8, 2014...  The Canada Revenue Agency (CRA) announced today that on July 4, 2014, Peter McCallion of Mississauga, Ontario, pleaded guilty in the Ontario Court of Justice in Brampton to five counts of failing to file corporate tax returns, six counts of failing to file GST/HST returns and four counts of failing to file personal income tax returns.  McCallion was fined $1,000 per count, for a total of $15,000 and has 27 months to pay the fine.  All outstanding returns have been filed.   As director of 100 Emby Drive Inc., McCallion failed to file corporate tax returns for the 2008 to 2012 taxation years.  McCallion, also a real estate agent, failed to file six quarterly GST/HST returns between January 2009 to June 2011 and his 2009 to 2012 personal income tax returns.  The CRA made several requests for the missing returns before serving McCallion with notices demanding that the...

Toronto dentist fined $175,586 for tax evasion Toronto, Ontario, September 4, 2014...  The Canada Revenue Agency (CRA) announced today that on September 2, 2014, Dr. Gerald Vasilakos was sentenced, in the Ontario Court of Justice in Toronto, Ontario, to a fine of $175,586 and to a conditional sentence of two years less a day. On March 7, 2014, Vasilakos, was found guilty by the same Ontario Court of Justice of four counts of wilful tax evasion. Vasilakos was given 90 days to pay the fine, which represents 100% of the federal taxes he evaded. Part of Vasilakos’ conditional sentence includes home confinement for a year and 200 hours of community service. A CRA investigation revealed that Vasilakos, owner and operator of a dental clinic, used various tax evasion schemes, including a scheme that is based on the faulty premise that the federal government cannot impose a direct tax on a human being, to wilfully avoid paying federal income taxes. Vasilakos produced fictitious invoice...

Toronto tax preparer sentenced for fraud Toronto, Ontario, September 17, 2014 ... The Canada Revenue Agency (CRA) announced today that on September 15, 2014, Carmine Sorella, of Toronto, Ontario, was sentenced in the Ontario Court of Justice in Toronto to a 90 day jail term to be served on weekends and 12 months conditional sentencing. Sorella pleaded guilty to two counts of fraud over $5,000 under the Criminal Code of Canada. A CRA investigation revealed that Sorella, a tax preparer, filed fictitious employment expenses and business losses to claim unwarranted income tax refunds for 42 of his clients. In particular, Sorella claimed non-existent employment expenses and business losses totaling $547,643 on 77 tax returns covering the years 2008, 2009 and 2010.  By doing so Sorella underestimated his clients’ federal income tax owed by approximately $108,459. Sorella charged his clients fees ranging from $25 to $300 per return. The preceding information was obtained from ...

Fraudulent tax returns net four 100 months jail time Ottawa, Ontario, October 20, 2014 … The Canada Revenue Agency (CRA) announced today that on October 16, 2014, Marian Dolinski, Adam Dawid Dolinski and Janina Dolinska, of Ottawa, Ontario, (the Dolinskis) were sentenced in the Superior Court of Justice in Ottawa, to a total of 100 months in jail and a total fine of $286,494.  On October 3, 2014, all three individuals were found guilty, in the same court, of one count of conspiracy to defraud the government of an amount greater than $5,000 under the  Criminal Code of Canada  and one count of making or participating in the making of false statements in the income tax returns of individuals to obtain or claim unwarranted tax credits under the Income Tax Act . The three individuals were sentenced as follows: Marian Dolinski - 30 months jail time on each count, to be served concurrently and fined $223,079 Adam Dolinski - 20 months jail time on each count, to be served ...

A woman can serve her divorce papers on her hard-to-find husband through his Facebook account, a judge has ruled. Manhattan Supreme Court  Justice Matthew Cooper  allowed the plaintiff wife to serve the divorce summons through a private message to the husband, while acknowledging the woman's request for sole, not supplemental, service through the message, was a "radical departure" from traditional ideas of what constituted service of process. "In this age of technological enlightenment, what is for the moment unorthodox and unusual stands a good chance of sooner or later being accepted and standard, or even outdated and passé," Cooper wrote in his March 27 decision in  Baidoo v. Blood-Dzraku , 310947/2014. Some judges have allowed service through Facebook, but in addition to other methods. For instance, a Staten Island Family Court support magistrate also required mailing the petition to the last known address ( NYLJ, Sept. 17, 2014 ). Here, the couple ...

Liquidators fined $445,440 for tax evasion Brampton, Ontario, May 3, 2014...  The Canada Revenue Agency (CRA) announced today that on April 29, 2014, Vijay Aggarwal, Ajit Gupta and 1509523 Ontario Inc., operating as A.G. Liquidation, were sentenced in the Ontario Court of Justice in Brampton, Ontario, to a total fine of $445,440. On July 24, 2013, Aggarwal and Gupta pleaded guilty to four counts each of income tax evasion, while 1509523 Ontario Inc. pleaded guilty to four counts of Goods and Services/Harmonized Sales Tax (GST/HST) evasion. Aggarwal was fined $185,302, Gupta $176,394 and 1509523 Ontario Inc., $83,744. The fines represent 125% of the total taxes evaded. A CRA investigation found that Aggarwal and Gupta, both of Brampton, Ontario, were equal shareholders of 1509523 Ontario Inc., which bought and resold discounted merchandise either in bulk or to the general public. Aggarwal and Gupta used money from A.G. Liquidation for personal purposes and failed to report the ...

Real Estate Agent jailed 12 months for fraud Brampton, Ontario, November 25, 2014 ... The Canada Revenue Agency (CRA) announced today that on November 24, 2014, Harinarain Mathur, of Brampton, Ontario, was sentenced in the Ontario Court of Justice in Brampton, Ontario, to a jail term of 12 months. On January 10, 2014, Mathur pleaded guilty in the same court to one count of fraud over $5,000 under the  Criminal Code of Canada. A CRA investigation revealed that Mathur, a licensed real estate and mortgage agent who operated HR Accounting and Tax Services, prepared false T4 slips and filed 292 fraudulent personal income tax returns for the 2010 and 2011 taxation years. Mathur used social insurance numbers and other personal information obtained through the preparation of numerous mortgage applications to file the fraudulent returns. Mathur filed fraudulent income tax returns with the false T4 slips and fictitious rent receipts. As a result, Mathur was claiming refunds of approxima...

Inmate sentenced for filing fraudulent tax returns Toronto, Ontario, November 24, 2014 … The Canada Revenue Agency (CRA) announced today that on November 20, 2014, Mark Johnston, of Toronto, Ontario, pleaded guilty in the Ontario Court of Justice in Toronto, to two counts of fraud over $5,000 under the  Criminal Code of Canada . Johnston was sentenced to a jail term of three years and 10 months. His sentence is to be served consecutive to any sentence Johnston is currently serving. A CRA investigation revealed that Johnston, while incarcerated between January 2007 and May 2009, either himself or through third parties, filed 1,400 fraudulent personal income tax returns in the name of 171 inmates and other individuals for refunds without their consent or knowledge. Johnston used dates of births and social insurance numbers he obtained from his unsuspecting fellow inmates and others. Using the same methodology, Johnston incorporated companies and filed 725 GST/HST returns for re...

Fines of $88,200 and a conditional jail sentence for failing to file tax returns Toronto, Ontario, December 2, 2014…  The Canada Revenue Agency (CRA) announced today that for the period between March 2014 and November 2014, 13 Ontario residents were sentenced for failing to file corporate, personal and/or GST/HST returns. The courts levied a total of $88,200 in fines, 150 days of conditional sentencing and ordered that all returns be filed. This includes 90 days of house arrest for Sandy Vogan, a repeat offender. In particular, the following individuals pleaded guilty and were sentenced for failing to file tax returns: Name of taxpayer Total Fine Keith Blackwell of Etobicoke $10,000 Donald Bodkin of Toronto $14,400 Carlos Canejo of Mississauga $10,000 David Carroll of Spencerville $4,000 Patrick Clifford of Etobicoke $1,000 Eric Guevara of Etobicoke $6,000 Sandy Vogan of Shedden $5,000 Deborah Laporte of Mississauga $3,300 Peter McCallion of Mississauga $15,000 Richa...

Tax fraud and evasion represent the most flagrant instances of non-compliance with tax statutes. During 2012-2013, 71 income tax and GST/HST investigations were referred to the Public Prosecution Service of Canada (PPSC) for prosecution, compared to 120 cases in the previous year. As a result of referrals to the PPSC (current and previous years), 128 cases resulted in convictions for tax evasion or fraud in 2012-2013. The courts imposed $9.95 million in fines and 53.5 years of jail sentences. These convictions related to revenue loss of $32.6 million. The CRA obtained convictions in 96% of cases prosecuted. In addition, the Ministère du Revenu du Québec, acting on our behalf, referred 27 GST investigation cases for prosecution and, based on these and previous year referrals, Quebec courts convicted individuals and businesses in 58 cases, and imposed $3.1 million in fines. Quebec GST convictions related to revenue loss of $4.4 million. Court convictions are publicized in local,...

Ottawa resident fined and sentenced to house arrest for tax fraud Ottawa, Ontario, February 2, 2015  … The Canada Revenue Agency (CRA) announced today that on January 30, 2015, Cemila Smikle-Kuznetzov, of Ottawa, Ontario, was sentenced in the Ontario Court of Justice in Ottawa to 30 days house arrest and a fine of $47,789. On August 1, 2014, Smikle-Kuznetzov pleaded guilty to one count of making false statements in the income tax returns of individuals to obtain or claim unwarranted tax credits under the  Income Tax Act . The fine represents 100% of the unwarranted refunds she claimed. A CRA investigation revealed that for 2005, 2006, 2007 and 2008 Smikle-Kuznetzov, using different aliases and by impersonating her sister, prepared and filed Canada Child Tax Benefit applications and personal income tax returns to receive benefits and credits for fictitious children. In particular Smikle-Kuznetzov fabricated and submitted false documents, such as birth registry papers, to s...