Back taxes, unfiled taxes and late taxes with Canada Revenue are all things some tax gurus, and even lawyers and accountants claim they can fix with a simple tax amnesty or voluntary disclosure to the Taxman. Tax lawyer Philippe DioGuardi explains the fallacy of this argument and why the DioGuardi Amnesty approach prevents you from falling into the tax trap these ‘gurus’ can lead you into. Find out why and free yourself.
DioGuardi Amnesty vs. the Back Taxes Trap
April 21st, 2010Toronto tax lawyer Philippe DioGuardi on CP24 March 30 at 9pm
March 30th, 2010Stephen LeDrew http://bit.ly/9V3lOG will host Philippe DioGuardi tonight (March 30) on LeDrew Live on CP24 (9pm on Rogers Cable 24, Bell 503, Shaw 509) to discuss tax amnesty, back taxes, tax evasion and other tax problems and how DioGuardi helps Canadians free themselves from the TaxMan. http://www.dioguardi.ca
Ebay “PowerSellers” Not Beyond The Taxman’s Reach
April 30th, 2008In an article on April 29, 2008, the Globe & Mail reported that the Federal Court of Appeal has upheld a previous ruling forcing online-auction giant eBay to provide the names, addresses, phone numbers, e-mail addresses and, most important, gross sales figures for all Canadian PowerSellers. An eBay PowerSeller is someone who sells at least $1,000 (U.S.) a month through the site and as such has access to special features and promotions.
The legal battle to withhold the names and protect the privacy of eBay buyers and sellers has been ongoing since 2006, when the CRA launched an investigation to see if PowerSellers were reporting revenue earned through eBay on their 2004 and 2005 income tax returns.
Unfortunately for some taxpayers who may now be exposed to the scrutiny of the CRA as a result of the ruling, this initial sweep could be the tip of the iceberg:
“…[eBay]… had about 10,000 PowerSellers in 2004 and 2005. There are five levels of PowerSeller status and qualifiers are eligible for prioritized support services and special promotions. There are likely far more PowerSellers today and it is not clear whether the CRA will audit them as well.”
While eBay may try to continue the legal fight to not disclose customer contact information, it is worth noting that the CRA has won virtually every legal battle thus far. That means that the chances are very good that all PowerSellers’ full identities will become known to the CRA.
This is one of a number of initiatives that demonstrates the CRA’s hard-line stance on those who are earning income through new media endeavours and businesses.
It’s a challenging situation on a number of levels. It’s quite possible that sellers don’t expect to achieve such high-volume sales at the outset of their internet campaign. As profits grow and order-fulfillment becomes more time-consuming, record keeping can suffer. The unfamiliarity that people have with new media ventures as opposed to traditional employment and income-generating endeavours could further lead to confusion about what and when income is taxable.
But the CRA is making it clear that it will entertain no grey areas. They are starting to look very closely not only at eBay’s PowerSellers, but at any number of online ventures.
Powersellers need to remember that every year the CRA automatically cross-references all T-4 employee returns with taxpayer SIN numbers. If the same SIN number comes up in more than one instance, the CRA will review the taxpayer’s return to see if the taxpayer reported all their T-4’d sources of income. Cross-referencing PowerSeller data into this same matching system would instantly disclose if the taxpayer is including eBay-generated income in his or her tax return.
The best advice? If you have been profiting from any online activity without reporting that income to the CRA, you are at risk.
Our free on-line assessment can help identify what action you may need to take to clean up your unreported income before the CRA comes after you.
For Canadians With Unfiled Tax Returns
April 4th, 2007According to a recent press report by Ufile, 45% of Canadians find tax return preparation to be stressful.
The startling outcome of the report, however, was that 13% of all Canadians polled said they know someone who has not yet filed their tax return for the previous year.
Frankly, that’s a problem – and not for the TaxMan. Under sections 238(1) and 239(1) of the Canadian Income Tax Act, not filing a return, filing more than one year late if tax is due, or failing to declare taxable income from any source, is a criminal offense punishable by jail time and huge financial penalties.
Contrary to what you might think, if you don’t file your tax return, the Canada Revenue Agency doesn’t forget about you. In fact, you are never entirely “off the radar” . They prefer to monitor your financial behaviour over time, using identifiers like your SIN or date of birth to access data from your bank accounts, your credit card transactions, or your acquisition of property and other possessions. The longer they let you continue as a non-filer, the more revenue they can generate in penalties and daily interest on the tax you should have paid. And the longer the period of tax delinquency, the easier it is to establish a clear cut case for criminal tax evasion.
If you are convicted of criminal tax evasion, penalties can be as much as 250% of the tax owing, plus daily interest. A jail term of up to two years is also possible. And you will have a criminal record for the rest of your life.
This message is short and to the point: If you are a non-filer, you need to protect yourself against criminal prosecution by seeking legal protection immediately. Whatever you do, do NOT file your 2006 tax return, or any of your other outstanding tax returns, until an experienced tax lawyer has negotiated a tax amnesty settlement on your behalf.
DioGuardi Tax Law negotiates more tax amnesty settlements than any other firm in Canada. As lawyers, we can guarantee you the full protection of lawyer-client confidentiality. Accountants, or any other tax preparer, cannot offer you this protection and may even be compelled by Revenue Canada to present evidence against you. That’s important for you to know.
If you have unfiled tax returns or undeclared income, you need to protect yourself today.
You can call DioGuardi Tax Law toll-free at 1.877.829.7902. Or click here to request a free online assessment of your situation. Act now – before the TaxMan calls you.