No More Sworn Testimony, But Audits Are Still Stress Inducing

“That” Phrase: it’s one no taxpayer wants to hear – digitally or otherwise. “You’re being audited.” If you’ve had to deliver that news you’ll know that the reaction can range from indignity to shock to panic. Based on the latest piece of legislation before Parliament, you might have to tell more of your clients to buckle up, it’s going to be a bumpy ride. CRA will now have greater powers. Consider this:

Subscribe to KBR to get our Real Tax News You Can Use Special Report! In This Edition: February 14, 2025 More Bad News on the Canada Carbon Rebate Anti-Flippers Beware: CRA Fines are Exorbitant What Residential Property Owners Need to be Audit-Proof

The GST holiday which  began in December comes to an end on February 15th and the fallout for consumers and businesses could linger for longer than the two month exemption itself.  Announced by the Prime Minister and then Finance Minister on November 21st, the end of the break will mean Canadians must once again pay more for common children’s items in particular.  Further, businesses will gain incur costs to reprogram point-of-sales and accounting systems. 

Canadian homeowners may not yet have caught up with the new rules around anti-flipping when they buy and sell their principal residences.  CRA has not only tightened the reporting rules, but now can deny the tax exempt treatment if the personal residence is not held for 365 consecutive days.  Some exceptions do apply.  So let’s take a look at the rules that should be discussed with all home owners and potential home owners:

Real Wealth Management is the accumulation, growth, preservation and transition of wealth after taxation, inflation and fees.  Seldom has an economic environment been more conducive to this approach with the threat of tariffs, significant tax change and numerous interest/inflation fluctuations.    Fortunately, tax season, which official begins for filing of T1s on February 24, can provide some cash flow relief.  Here are some things to consider.

Diane Colton, Business Services Specialist, FDFS™, Knowledge Bureau VIP graduate, designate, esteemed Fellow of Distinguished Financial Services and owner of Mobility Tax has been selected to receive the King Charles III Coronation Medal from the Governor General of Canada.

The Recorded Sessions of this High Value Webinar are now available featuring in depth instruction from tax experts Evelyn Jacks, Kim Moody and Ruth Horst.  Don’t miss this important opportunity to decipher the Capital Gains chaos for your clients, family and community. File T1 returns with the new Schedule 3 with confidence – train rooking staff members, too. Plus, there’s still time to enrol in our upcoming CE Savvy™ Mini Summit live-virtual events. On February 19 we will focus on Families and Their Real Estate and on February 26 Small Business Returns.