From: canada.revenueagency@canada.com   
      
   Protect yourself from the taxman   :CRA SOTW    
      
    PAUL DIOGUARDI    
      
   First posted: Saturday, April 29, 2017 06:56 PM EDT | Updated: Saturday, April   
   29, 2017 08:15 PM EDT    
      
   Any time a drab recycled paper envelope bearing the Canada Revenue Agency logo   
   arrives in the mail, how many can truly say their heart doesn’t skip a beat   
   before opening it up to discover the message?    
      
   Is it a Notice of Audit? A re-assessment? A refusal to a deduction made on   
   your last tax return? Or — good news — acceptance of your return with a   
   statement showing there is no tax owing...for now.    
      
   Instinctively, most people understand their relationship with the Taxman is   
   based partially upon fear. They might have done something wrong. Maybe a small   
   mistake on a previous tax return will one day come back to haunt them.    
      
   And we should all be cautiously afraid. Everyone — even the most   
   conscientious, T4-salaried, always-file-on-time taxpayer — stands in danger   
   of the Taxman’s scrutiny. Once the Agency has turned its eye on you, it will   
   treat you as if you were    
   already guilty of the tax transgression it is determined to prove you have   
   committed.    
      
   Why, then, do so many people insist on dealing with the CRA as a trusted   
   friend?    
      
   Most are amazingly accepting of the heavy burden of tax. The majority of us   
   say we believe paying taxes is our social responsibility.    
      
   We think that most of us do pay our taxes, and that we pay them on time. And   
   we believe that, in return for our dutiful acceptance of our tax burden, we   
   will be rewarded with the respect and gratitude of the tax authorities. Only   
   non-filers, non-payers,    
   and cheaters have reason to be wary of the Agency.    
      
   Nothing could be further from the truth!    
      
   Taxpayers don’t think of the Agency as the enemy. Many don’t believe our   
   tax authorities would ever do anything to harm us. In fact, most are   
   misinformed about the powers and governing mission of the CRA.    
      
   Take this quick quiz to see how much you really understand about what the   
   Taxman can and can’t do. The questions themselves will begin to raise doubts   
   about the benign relationship you think taxpayers have with the CRA. The   
   answers may keep you up at    
   night.    
      
   TAXMAN TRUE OR FALSE?    
      
   1.Nobody ever goes to jail for not filing a tax return. (It’s just a scare   
   tactic to get people to pay up.) TRUE or FALSE?    
      
   FALSE. People do go to jail. Sentences are a maximum of two years for each   
   summary conviction, and up to five years for each conviction on indictment.    
      
   2.If the CRA hasn’t questioned your return after four years, you got away   
   with it. TRUE or FALSE?    
      
   FALSE. If there is evidence of fraud or misrepresentation of income, the   
   Agency can come after you at any time for any tax year.    
      
   3.Transfer your assets into your wife’s name and the CRA won’t be able to   
   take anything. TRUE or FALSE?    
      
   FALSE. If the transfer of assets is made after there is tax owing, your spouse   
   will share your responsibility for paying the tax, up to the fair market value   
   of the assets he or she received from you.    
      
   4.You should always feel comfortable talking to tax auditors on your own   
   because they work for the government and they’re on your side. TRUE or   
   FALSE?    
      
   FALSE. The CRA is the government’s collection agency. It has police-like   
   powers to investigate you and, if appropriate, recommend charging you with   
   offenses against the tax code. Anything you tell them can be used against you.    
      
   5.The taxman has the power to order your bank to provide records of your   
   financial transactions without your permission. TRUE or FALSE?    
      
   TRUE. The Income Tax Act gives them the power to require information about you   
   from any source. Banks and credit card companies, among others, are required   
   by law to provide records of your transactions if so requested by the CRA.   
   There is no requirement    
   to inform you or seek your permission.    
      
   6.The Agency is under no obligation to notify you that a lien has been   
   registered against your home or other property. TRUE or FALSE?    
      
   TRUE. In the collection of tax — and especially if there is concern you may   
   sell or mortgage your property in an attempt to avoid payment of tax — the   
   taxman has the power to seize assets and register a lien against real property   
   without notifying    
   you.    
      
   7.The CRA has a special 1-800 number people can call to snitch on suspected   
   tax evaders. TRUE or FALSE?    
      
   TRUE. The CRA encourages people to report tax evaders by calling their local   
   tax services office. Reports may be made anonymously and a reward may be   
   payable.    
      
   8.The taxman makes public the names and sentencing details of convicted tax   
   evaders. TRUE or FALSE?    
      
   TRUE. The Agency issues press releases detailing the names and offences of   
   convicted tax evaders.    
      
   How did you do? The more answers you got right, the more likely you will be   
   able to protect yourself from the taxman.    
      
      
   ----------------------------------------------------------    
   Miss a Tax Tale Miss a lot!    
   Visit the CRA SOTW Library at http://canada.revenue.agency.angelfire.com    
      
   ------------------------------------------------------------    
   Alan Baggett - http://www.taxcollectorsbible.com/ - Tax Collector's Bible    
      
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