March 15, 2020

Why taxpayers cannot rely on advice from the CRA

If you are unsure about how certain tax with holdings may work for your work situation, asking the CRA directly may not be your best option. A recent case involving a truck driver who was told incorrectly that he did not have to pay and HST taxes by a CRA agent. When the case went to court, the judge decided against the driver. Although the courts do not allow relief from taxes owed in cases like this, tax payers can seek to have any penalties and interest waved in these situations.

“While it may be shocking and perhaps even unfair to taxpayers that the CRA can provide incorrect tax advice to taxpayers and then reassess them later for having acted on said advice to their detriment, the tax court’s reasons for refusing to grant relief in this case is obvious. The CRA gets tax law wrong all too often.”

Read more: http://www.canadian-accountant.com/content/practice/why-taxpayers-cannot-rely-on-advice-from-the-cra

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