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Mark Feldstein & Associates Tax Accounting Blog

EBay Canada will hand over additional tax records to the Canada Revenue Agency

In September 2009, eBay Canada received a court authorized requirement from the Canada Revenue Agency. Ebay must now release the account information and sales data of Canadian eBay members that meet the following conditions:

Sales of more than $20,000 and at least 24 sales transactions in any of the calendar years 2006, 2007 or 2008, (irrespective of membership in eBay’s PowerSeller program)…

UBS to release Swiss bank accounts detail to the IRS

Swiss banking giant UBS AG has agreed to turn over details of 4,450 Swiss bank accounts suspected of holding undeclared assets to the IRS.

The deal will provide the IRS with thousands of long-sought account names. UBS has an estimated 52,000 accounts of US customers. The 4,450 accounts being provided to the agency were the ones most suspected of containing undeclared assets.

Revenue Minister…

Tax Alert

Canadians must report all of their worldwide income. Individuals working in industries where cash transactions are prevalent must take extra care that all of their income is reported accurately. The books and records of the business must be immaculate and reflect their income.

If the books and records are inaccurate and sloppy, then CRA can undertake a net worth audit and will examine the lif…

Restoration Masters and R. Arlen Scherba fined over $228,000 for tax evasion

Arlen Scherba of Sombra, an officer of 952768 Ontario Limited which operates as Restoration Masters pleaded guilty in the London Ontario Court of Justice for GST and income tax evasion. The corporation was fined $129,177. Scherba also pleased guilty personally on three counts of tax evasion and was fined $99,771. The fines delivered by the court represented 90% of the taxes evaded which is…

Stoney Creek Residents fined for not filing tax returns

Stylianos Timkoglous of Stoney Creek pleaded guilty on June 3, 2009 on three counts of failing to file corporate income tax returns for the years 2004 to 2006. Timykoglous was fined $3,000 for failing to file the corporation tax returns. Colin Michael Fox also of Stoney Creek pleaded guilty on July 3, 2009 for failing to file his 2004 to 2006 personal income tax returns. Mr. Fox was fined…

CRA Audits EBay Sellers

CRA will commence auditing EBay sellers this fall. Jean-Pierre Blackburn, the Revenue Minister announced on July 30, 2009 that anyone who has sold products on EBay could avoid audits, penalties, interest and criminal prosecution by doing a voluntary disclosure and declaring the income to the CRA.

Doing business on EBay is no different than regular business and the income should be reported.

CRA…

Richmond Hill Travel agency fined for claiming non-deductible expenses

Fairway Travel Inc was found guilty on July 8, 2009 for tax evasion. During the course of a CRA audit, it was discovered that there were non-deductible expenses claimed in the amount of $325,602. Consequently, the company evaded paying federal income taxes in the amount of $75,395. The Company was fined $150,000 in addition to taxes and interest.

If the company would have applied under t…

Newspaper Distributor penalized for not reporting income

Matthew Norman Burse of Stoney Creek pleaded guilty on July 2, 2009 in the Ontario Court or Justice. Mr. Burse was charged with income tax evasion for 2003 and 2004.

CRA’s investigation revealed that Mr. Burse did not report his income earned from the delivery of newspapers. During the course of the audit, Mr. Burse did not disclose to the auditor a bank account where the majority of his…

Actions That The Canada Revenue Agency Can Take

CRA garnishes your income or puts a lien on your property only as a last resort.

Generally, these measures are applied if you have not filed tax returns for a number of years and have ignored the many letters and phone calls that CRA has initiated. In some cases, CRA will take information from the past and do an arbitrary assessment based on what they feel the taxes should be. Their estimated…

Tax payer Relief Provisions

The Tax Payer Relief Provisions allow you to appeal to have penalties and interest waived if you have a good reason for not paying your taxes on time. The reasons have to be deemed extraordinary by CRA and require detailed documentation. The taxpayer has 10 years from the end of the calendar year in which the tax year or fiscal period at issue ended to make a request to the CRA for relief.

T…

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