Quote:
Originally Posted by Bobblehead
Some auditors are jerks, others are fine. It is the luck of the draw as to which one you get. Same with phone support. I used to need to call in a few times a day to take care of various client matters. Depending upon who answered the phone I knew what type of service I would get. With the crappy people I would ask one easy question ("Can you tell me what you have on file for last year's capital loss?") then hang up and call back hoping to get some one different. With the good ones I could ask a number of questions and get a lot of stuff taken care of over the phone.
And there is nothing "wrong" with transferring property in a "non-arms-length" transaction. You just need to declare the gains properly and that can be tricky as hell. If you do it wrong, you will get interest. If you don't even try to do it right you will probably get penalties. If you do it wrong and CRA thinks you did it wrong on purpose, then you are talking big money and possible jail.
Don't take everything CRA does as being gospel. They are human and make mistakes. If you disagree, call them and ask questions.
Tax avoidance and tax evasion are very different things.
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Extremely well said!
That pretty much sums up the way I do things too, although I take a somewhat more conservative approach to the Non-Arms length transactions. In my experience, the CRA almost always defers to evasion rather than avoidance in Non-Arms Length cases. Its pretty much a guilty until proven innocent system.
Furthermore, I have seen too many people try it for extremely dubious reasons and get nailed, so there exists a point and counterpoint in this area of tax.