Tips when Dealing With CRA Part 6

In my previous blogs, I have discussed 9 tactics used by the CRA and how to deal with them.  There are a few more that you should know about. Read on . .

10. Notional Assessments – If you don’t file for  a period of time CRA may come up with an amount that you owe.  The amount that they come up with is typically much more than you would owe.  You must contest these amounts and get your filing up to date so CRA has accurate numbers and don’t go off of the ones they made up!

11. Corporate Director’s Liability – A shareholder of a corporation does not take the liability, but the director does.  By signing on as a director you are taking the responsibility of all CRA debts even if the corporation closes.  To avoid this, the director of the corporation can be someone who doesn’t own title to any assets that CRA can lien, nor have any income that CRA can garnish.

12. Loss of Documentation – Occasionally CRA loses documentation.  If you have given them originals it is too late at this point.  If you have to prove your case you now can’t because you don’t have original documents.  To solve this issue, never give CRA original documents instead give them copies when they request documentation from you.  Alternatively you could meet them somewhere with your documentation so they can review it on the spot, without taking it.  Even better, let them meet with your accountant!

CRA does have a lot of power and can access all kinds of information on you.  You must know your rights, which are found on the taxpayer bill of rights.  You must know how to deal with them.  You must also know that you can have an authorized representative that can deal with them on your behalf.  And again, do everything in writing with them!