news brief Archives - Page 10 of 17

Scammer calls off duty cop and gets a response he never expected

Phone scammers have been preying on people for years and a common scheme (especially this time of year) is to pose as CRA agents to attempt to extract money or personal information from their victims. An off-duty cop decided to give the scammer a piece of his own medicine after receiving a scam call. After several threats of police action made by the scammer, the cop faked a shot gun sound threatening anyone who came for him. The scammer quickly hung up knowing they weren’t getting money from him any time. If you get a call from anyone who asks for money, phone the police to verify that it’s legitimate. In almost all cases, it’s a scam.

“What this scammer doesn’t realize is that he left a message at the home of “Dave”, a police officer, who actually received many complaints about this scam and spends a good part of his week at work warning people about similar ploys. Dave decided to return the call and have a little fun with the pretend officer at the other end. “

More than 40 Albertans went broke every day for the past year on record

Bankruptcy and consumer proposals lead to 14,696 consumer insolvency cases in Alberta for last 12 months ending in January. That’s a a ten percent increase from the previous year. Job loss or business failure as well as improper use of credit and budgeting have lead more and more people into a debt spiral. A surprising trend has been an increase in the senior population due to increased cost of living as well as helping family members financially. The rate has also gone up in more populated areas.

“While some Albertans are insolvent due to job losses or business failures, others have simply gotten themselves too deep in debt, says a licensed insolvency trustee in Calgary.”

How to build your small business credit score — and keep it high

If your small business needs a line of credit, it’s important to have a high credit score. There are ways to build your score to make your business more attractive and get the money you need. First, maintain a good personal credit, but keep it separate from your business credit. Second, make sure you are paying who you need to pay and maintain your cash flow. Third, check your score to you know where it currently sits and then find out what you have to do to increase your score if needed.

“How can small business owners increase their ability to get credit and finance their business during the difficult early years? Credit experts offer some tips.”

Why your neighbour’s kid is getting a better mortgage rate than you

Remortgaging your house can be frustrating, especially when you get a higher rate than a younger, new home buyer who is not as financially well off as you. Banks are willing to work with new home buyers who put little money down because they have their loan guaranteed by the Canadian Mortgage and Housing Corporation (CMHC). These borrowers are considered a lower risk for the lending institution than someone with no insurance or guarantee on the payment of that mortgage. Those who have a higher home value and want to refinance are at the mercy of their lending institution who is not as willing to work with them.

“How did a 27-yeaer-old kid get a 3.39% mortgage while I’m paying an extra 0.45% a year?”

Personal Investor: CRA fails audit of itself

A new report from the Auditor General has found that the CRA has been failing in its duties, often violating the taxpayer’s bill of rights. Inconsistent practices within the organization vary from the length of time for correspondences to payment of penalties being forgiven. The agency is not being subjected to a review but in response to the findings, the CRA itself has promised to look into these inconsistencies ensuring all taxpayers are treated equally in the future.

“The auditor has become the audited. In an interesting turn of events Canada’s auditor general has audited the Canada Revenue Agency and found it’s falling behind.”

Taking this step when filing your taxes can help you avoid a gross negligence penalty from the CRA

When filing your taxes this year, be careful that you have receipts to back up all your deductions. If you don’t, then not only will the claim be denied, but you may face a gross negligence penalty. A Canadian taxpayer in Ontario recently has felt the brunt of CRA tax enforcement when childcare payments, which were supposedly paid to relatives to watch her children, could not be substantiated. Not only did she have to pay the money she claimed as a deduction, but she was hit with a large penalty for filing what a judge deemed as a false tax return.

“Failure to provide proper receipts to the CRA could not only lead to a denied deduction, but could also result in a gross negligence penalty, as a taxpayer recently found out.”

Canada: Proposed Changes To ITC Rules For Holding Corporations

Companies using section 186 of the Excise Tax act to claim Input Tax Credits should be aware of the proposed changes. If enacted, these changes will, then affect their business. Section 186 has often been confusing, with even court disputes unable to interpret some situations when it should be applied. The new proposal will lay down a specific set of circumstances in which the tax credits involved can be used. Companies will need to be aware of these specifics if these proposed changes occur, especially if they have been receiving these credits in the past.

“If the proposed legislation is enacted in its current form, ITC eligibility will no longer turn on whether the inputs “can reasonably be regarded” as being in relation to the shares or debt of a related corporation, but on whether the detailed and specific requirements of paragraph 186(1)(a), 186(1)(b) and 186(1)(c) are met.”

How not to claim employment expenses on your tax return

A recent tax case shows the right away and wrong way to claim work-related expenses that your employer doesn’t cover. These expenses can include: accounting, legal, advertising and promotion fees, allowable motor vehicle expenses, certain food, beverage, and entertainment expenses, out-of-town lodging expenses, parking, postage, stationery and other office supplies. One important part of claiming these employment expenses is to get your employer to complete and sign a Form T2200 (Declaration of Conditions of Employment), because without it, your deduction can be denied by CRA if audited.

“If you’re an employee who pays for various work-related expenses that your boss doesn’t cover, you may be able to get some tax relief when you file your 2018 tax return by claiming a deduction for valid employment expenses.”

IRS won’t penalize confused taxpayers following changes to code

The Treasury Department announced that it is providing relief this year for those individuals who under reported the tax that they owed the United States government. This relief is due to the 2017 tax overhaul changes, but the relief is limited. If the filer paid at least 85 percent of what they owed, then there will not be a penalty. If it was less, then a penalty will be in effect.

“Taxpayers who miscalculated how much they’ll owe the Internal Revenue Service this year won’t get hit with penalties — up to a certain point.”

Canadians are tuning out real tax agents because of CRA phone scammers

Telephone scamming has become so frequent in Canada that it has become difficult for real tax agents to contact citizens. The Canada Revenue Agency (CRA) says that fraudsters pretend to be tax enforcers when they call Canadians with threats related to owed taxes and further penalties. These calls have become so commonplace that real CRA agents are often assumed to be fraudulent. A spokeswoman from the CRA notes that they do not call to ask for payment, although they may call to verify information.

“Some people are so used to receiving the fraudulent calls that they assume any communication from the tax-collection agency is bogus.”