Quote:
Originally Posted by SilverKast
I hate hearing people tell me that they are allowed to deduct all sorts of things when they file taxes because so and so does it. Sure you can put whatever you want on your return, doesn't mean it's actually allowable. It's just waiting for CRA to come audit you is all.
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I gripe about this quite frequently. In Accounting Circles its known as "A&W Breakfast Advice."
Whether it happens over a breakfast sandwich, coffee, beers or shooting the breeze with buddies or co-workers this advice is usually terrible.
I could write you a laundry-list of some of the dumbass things people have done or tried to write off, from Hot Tubs (although technically that worked...once) Pets as 'dependents' and that doesnt even get into applying for benefits during COVID which was pretty much an open scam-a-travaganza.
My favourite was a client who applied for CERB because his buddies at breakfast and coffee were all doing it and told him he should too!
And then his bewilderment as to why CRA wants him to pay it back?!?
To which: "Dude...CERB was to help people afford to stay home if they were sick or just couldn't work as a way to supplement lost income.
You have been retired so long you're collecting a pension from
AGT! You didnt lose any income and as such weren't supposed to claim that."
Yeah but John, Bill and Don all did it and told me to!
I. DGAF.
Then things like: "I'm not Overtime anymore, they just take it all away in Taxes and its just not worth it!!"
You dont understand how this work.
And THEN: "Well I called CRA and they said I could!!"
"O really? Who did you talk to? The first person who picked up the phone? Thats not an Accountant. Thats the receptionist. Their job is to answer the phone. And then do whatever it takes to get you to hang up. They dont know Jack about accounting much less taxes. Nothing. Those are essentially 'cash-corner street-people' who can mildly speak English (this isnt a given) and can physically pick up the receiver of a telephone."
And whats more? They can tell you
ANYTHING THEY WANT. If its wrong? You're the one on the hook for it. What're you going to do about it? Do you know who that was on the phone? Nope? Neither does anyone else and whats more they dont care.
The Government did a study about 5 years ago where they found that CRA only answers about 30% of the calls they get and of those calls that they did answer they gave incorrect information about half the time.