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.”
Read more: https://lfpress.com/personal-finance/taking-this-step-when-filing-your-taxes-can-help-you-avoid-a-gross-negligence-penalty-from-the-cra/wcm/31a190c4-af4e-43ff-bad3-8145c0ad97ee