Home
>
Tax
>
Render Unto Caesar

Render Unto Caesar

Once a year Canadian taxpayers are required, by law, to file an income tax return in the prescribed form: $150(1).

For individuals: $150(1)(d) ITA, they must do so by April 30 of the following year, provided that they owe any taxes or if they are served with a requirement to file: $150(2) ITA.

There are other rules for corporations, trusts, partnerships and deceased individuals.

If any taxpayer is required to file under $150 then they are also required to estimate the amount of the taxes payable: $151 ITA.

Caesar's Reply

Once the taxpayer has filed their return, the Minister of National Revenue ("MNR") shall examine the return and assess the tax for the year, the interest and penalties, if any, payable: $152(1) ITA.

If the ministerial delegates don't agree with what the taxpayer has filed, then the MNR may at any time make an assessment, reassessment or additional assessment for a taxation year: $152(4) ITA.

Not filing won't prevent the MNR from making an arbitrary assessment: $152(7) ITA.

Some writers have concluded that Canada's self-assessment system is based on 'voluntary compliance;' however, CRA on its website, under "Tax Myths" (No 2) clarifies that the system is voluntary only in the sense that you can choose to comply. The consequences of not complying are entirely involuntary and Draconian.

Non-Filing And Late Filing

Not filing will, not surprisingly, have consequences, such the imposition of penalties: e.g., $$162(1), 163(1) ITA. Interest will also accrue (at a rate prescribed quarterly) and the taxpayer may be charged with non-filings as an offence: e.g. , $238(1) ITA.

Whether a taxpayer can be convicted of the criminal offence of tax evasion, under $239(1)(d) ITA, if they haven't filed is problematic: R. v. Paveley (1976), 30 C.C.C. (2d) 483 (Sask. C.A.); but any taxpayer who find themselves in such circumstances should immediately retain legal counsel to take advantage of the voluntary disclosure programs offered by CRA; attempting to do so without experience legal assistance may prove risky.

I Object!

Under $165(1)(a)(ii) of the ITA, a taxpayer who has been assessed, or re-assessed, may file a Notice of Objection (Form 400A) setting out their reasons for objection and all relevant facts, within 90 days.

$166.1(1) ITA does provide that were a taxpayer hasn't filed their Objection in time, that an application can be made to the MNR for an extension, but such wholly discretionary remedies are to be avoided if at all possible.

Some of the most complex statutory provisions known to mankind are found in the ITA and taxpayers who endeavour to prepare and file Objections without professional accounting or legal help are too often engaging in a forlorn hope.

If a taxpayer doesn't object then they lose their rights to complaint about that assessment.

In other words, if you want relief, you are compelled to object.

Charter $7

There is no provision in the ITA to allow taxpayers who have been charged with an offence under $239(1) ITA with an automatic extension, or a right not to appeal, pending the resolution of their criminal charges.

This element of compulsion under $165 ITA, as it applies to taxpayers charged with offences under $239(1) ITA, "owing to the threat of imprisonment": R. v. Jarvis, [2002] 3 S.C.R. 757, may violate $7 of the Charter of Rights and Freedoms.

Whether this potential violation of Charter $7 crystallizes depends on whether what access CRA Investigations has to the information contained in the Objections, and whether the prosecution 'could' use it.

CRA's Policy

CRA's publication RC 4213 "Your Rights" at page 9 of 13, under the caption "Your right to a formal review" states that,

"?appeals representatives who were not involved in the original decision are available to conduct a formal and impartial review" and again under caption "How do we ensure redress processes are impartial?" where it states that, "[T]he Appeals Branch operates independently in relation to other CCRA branches;" "Appeals Branch staff have a mandate to resolve disputes?by impartially reviewing CCRA decisions" and "The representative who reviews your case will not have been involved in the original assessment?"

The Concise Oxford Dictionary defines, "independent" as being "not depending on authority of? unwilling to be under obligation to others" and it defines "impartial" as being "?unprejudiced."

From the language used CRA is warranting to taxpayers that they have these Rights. It is therefore CRA's public policy to consider its Appeals Division (where Objections are filed) to be "impartial" and "independent" of the rest of CRA ? including Investigations.

Most taxpayers would expect that CRA Investigations wouldn't have access to their Objections filed with Appeals, because communication between the divisions wouldn't be fair or impartial.

CRA's Practices

Violations of the Charter aren't established on CRA's best practice scenarios, they are based on what actually happens in practice.

Since reassessments and the criminal charges will generally proceed hand in hand this problem will continue to reoccur. Taxpayers are compelled to file an Objection, or lose their rights; but if they do file then what they have filed can immediately be used by the prosecution against them.

It may surprise taxpayers to know that CRA's Appeal Division has been known to give Objections filed by taxpayers charged under $239(1) ITA to the Investigation Division; it may astonish taxpayers to know that those materials were then used by the Crown against those taxpayers facing prosecution for tax evasion; but it should shock taxpayers to learn that when this violation of CRA's policy concerning Appeals "impartiality" and "independence" was brought to them, no one in CRA considered this the least bit objectionable ? not locally and not in Ottawa.

A Clear Violation

How widespread the practice is, as yet, unknown but that it should be permitted to exist at all is, in this writer's opinion, a clear violation of Charter $7: R. v. White, [1999] 2 S.C.R. 417; Blencoe v. B.C. (Human Rights Commission), [2000] 2 S.C.R. 307.

If you are aware of any such instances, please email TER at with the particulars.

Staff Writer
For Tax Evasion Resources
http://www.taxevasionresources.com

expert residential cleaners Park Ridge ..

In The News:

The Omoway Omo X features a modular design, obstacle detection and emergency braking, and can drive itself to charging stations, signaling the future of smart urban mobility.

PillTrek, a tiny wireless smart capsule created by Caltech, provides real-time gut health data by detecting electrolytes, metabolites, glucose, hormones, pH levels and temperature.

Learn to spot fake bank text messages with five warning signs of Chase phishing scams, including suspicious links and urgent deadlines designed to steal your account information.

Robot coyotes built on motorized cars reaching 20 mph are being deployed at military airfields as an innovative solution to wildlife threats to aircraft safety.

Explore Google Drive's strengths and weaknesses as a backup solution, including its encryption security, privacy concerns and comparison to dedicated backup tools.

As environmental challenges grow, underwater habitats gain momentum with DEEP's Vanguard, supporting short missions and Sentinel designed for 28-day stays at depth.

The new Urban Eyes safety vest features dual cameras, reflective panels and a wireless remote to deter harassers and provide peace of mind for outdoor workouts.

The $200 billion data broker industry tracks your personal details across websites, posing privacy risks that can be mitigated through data removal services.

UCC Holding has teamed up with COBOD to create desert-inspired, 3D-printed schools in Qatar, featuring dune-like wavy walls impossible with conventional construction.

Darkling beetles equipped with microchip backpacks can be guided through disaster areas using electrical signals, offering a biological solution for search and rescue.

Scammers use number porting to take control of outdated landlines still connected to financial accounts, bypassing two-factor authentication to steal funds while avoiding detection.

Twitter co-founder Jack Dorsey developed Bitchat, a privacy-focused messaging app that works offline via Bluetooth without requiring email, phone numbers or personal data.

Google is making a push to ensure its AI, Gemini, is tightly integrated with Android systems by granting it access to core apps like WhatsApp, Messages, and Phone.

A new green energy system is set to change how we capture clean power, and it all starts with the ocean. French startup Seaturns has designed technology that taps into the natural motion of the sea.

Cybersecurity researchers are warning that hackers have started exploiting flaws in chatbots to carry out AI phishing attacks.

Google has just made it easier than ever to regain control of your inbox with Gmail's new Manage Subscriptions tool.

Despite the benefits, residential power saver programs come with several potential drawbacks and concerns that have been raised by both customers and experts.

The Blackdot AI tattoo machine is quiet. It's steady. And according to early users, it hurts a lot less.

Attackers have started to exploit the very signals that users assume will keep them safe when it comes to add-ons to improve productivity or entertainment.

Located on Cerro Pachón in Chile, the world's most powerful digital camera is set to transform how we see the universe.

The innovative DQ Tower stands 28 feet tall with 420 square feet of living space, featuring floor-to-ceiling windows and premium amenities in a prefabricated design.

A new mmWave imaging system allows warehouse robots to scan and create 3D models of objects inside sealed containers, potentially revolutionizing shipping processes.

Family fraud endangers seniors when relatives exploit their trust, but removing personal data online and monitoring identity can prevent financial harm to aging parents.

A study analyzing 500,000 customer service interactions shows chatbots struggle with complex issues while human agents excel at matching customer communication styles.

Aigen's Element robot uses solar power and AI to provide farmers with a sustainable alternative to herbicides, working efficiently in cotton and soy fields.