Accounting and Taxes Thread

[CaptainYooh]

Surprisingly (or not), we have quite a few accountants in here. Hopefully, out of love for their profession, they would be kind enough to throw a few freebies and answer some silly general questions in this thread from us plebes...

I'll kick it off with a simple one (right?); does CRA have any accountability for the time they take to review audit responses? They certainly have very little patience themselves when it comes to requesting documents in support of audit inquiries. And G-d forbid, you miss their deadlines to respond; re-assessments come back at you fast and furious. Conversely, when everything is copied, mailed, uploaded, provided etc. they sure take their sweet time to look at it and respond. Not only that, they give you f... all as to when you might even expect their response.

Case in point: back in July of 2023 I was asked to provide receipts supporting employment expenses, which I filed promptly on MyCRA. Three months passed - nothing. Called in October, spoke to someone: "oh, looks like nobody had a chance to see it for some reason; why don't you re-upload, so that we can now assign a special review number to your file". No apology, just a matter of fact. Happens, eh. Done. Nine months later now, still nothing. Called again. "Oh, yeah, we see it, it's in the cue." When can I expect a response? "We don't give this information, because we don't know"... I mean, come on. It has to be at least some form of a guideline on their response timing. CRA is becoming a Canadian version of KGB - clandestine, secretive, accountable to nobody. You cant' even sue them, really.


Added for GGG:

[PepsiFree]

How many threads do you people need?

[pylon]

When it comes to tax accountants, the conversation begins and ends with Locke.

The man has saved me and made me thousands of dollars I would have never got trying to do it on my own.

AAA++++++ would tax return again.

[Locke]

Clearly Tax is my specialty.

As was mentioned in one of the other threads, and its probably a good idea to centralize things a little bit.

Its good to get advice from people who are more concerned about protecting your money as opposed to taking it.

As many other Accountants on here have mentioned, a little bit of free Tax advice can save a considerable series of headaches and money.

[D as in David]

Originally Posted by PepsiFree

How many threads do you people need?

That's a stretch.

[D as in David]

Originally Posted by Locke

Clearly Tax is my specialty.

As was mentioned in one of the other threads, and its probably a good idea to centralize things a little bit.

Its good to get advice from people who are more concerned about protecting your money as opposed to taking it.

As many other Accountants on here have mentioned, a little bit of free Tax advice can save a considerable series of headaches and money.

Pffft...if the advice had any value, good accountants wouldn't be giving it away for free.

[monkey brewery]

Coincidentally, I was just looking into this this morning.

Can money be moved from my RSP, soon to be RIF, to my grandchilds RDSP without taking a tax hit? Is this something an accountant or tax lawyer can set up? Revenue Canada's site is quite vague on the RDSP.

I have an accountant, insofar as I have someone whose done my taxes for a decade, however my sense last year when I brought this up is that he is not that knowledgeable on the RDSP.

[pylon]

Originally Posted by D as in David

Pffft...if the advice had any value, good accountants wouldn't be giving it away for free.

On a serious note, I have employees I've recommended Locke to, and they are like. "OMG $200 to file my taxes! I can use super-duper community cloud share tax for free!" Meanwhile I know they are probably leaving a couple grand on the table, to save $200 in-the-moment.

[GGG]

This thread needs a picture of a helicopter in the first post

[CaptainYooh]

Originally Posted by Locke

...
As many other Accountants on here have mentioned, a little bit of free Tax advice can save a considerable series of headaches and money.

Well to my question then?

[Locke]

Originally Posted by CaptainYooh

I'll kick it off with a simple one (right?); does CRA have any accountability for the time they take to review audit responses? They certainly have very little patience themselves when it comes to requesting documents in support of audit inquiries. And G-d forbid, you miss their deadlines to respond; re-assessments come back at you fast and furious. Conversely, when everything is copied, mailed, uploaded, provided etc. they sure take their sweet time to look at it and respond. Not only that, they give you f... all as to when you might even expect their response.

Case in point: back in July of 2023 I was asked to provide receipts supporting employment expenses, which I filed promptly on MyCRA. Three months passed - nothing. Called in October, spoke to someone: "oh, looks like nobody had a chance to see it for some reason; why don't you re-upload, so that we can now assign a special review number to your file". No apology, just a matter of fact. Happens, eh. Done. Nine months later now, still nothing. Called again. "Oh, yeah, we see it, it's in the cue." When can I expect a response? "We don't give this information, because we don't know"... I mean, come on. It has to be at least some form of a guideline on their response timing. CRA is becoming a Canadian version of KGB - clandestine, secretive, accountable to nobody. You cant' even sue them, really.

1. No. Not unless you literally Sue them. Which you generally dont want to do. Firstly because Tax Lawyer cost a fortune and secondly because they absolutely do hold grudges.

2. Thats not uncommon at all.

In fact, within the last few years I've noticed that CRA have even stopped sending out responses of how your case worked out.

If they deem that you owe them money they will send a NoRA accompanied by a bill with a threat of more penalties and interest.

If they deem that everything is fine you will likely get complete silence. "No news is Good News?"

They used to commonly issue statements notifying the Taxpayer that the matter is resolved and the case is closed, but thats hit or miss these days.

The problem with electronically uploading documents to CRA, and yes, I know this sounds stupid, is that it can go anywhere....up to and including nowhere.

I had an issue a few years back where I uploaded a client's documents and a third of it went to Winnipeg (where it was supposed to go) a third of it went to Surrey and a third of it went to Ottawa.

This wasn't 3 separate submissions. This was all submitted at the same time under the same confirmation number.

Why did it get broken up and go to 3 different places to be reviewed by a half-dozen different people?

CRA: *shrugs* All Shoulders. "Maybe send it again? Are you sure you sent it?"

I have a confirmation number. I PDF every confirmation number and save it in the client's file. How can it be simply 'gone?'

I know it sounds nuts, but it happens.

[Locke]

Originally Posted by CaptainYooh

Well to my question then?

And you gotta go with Air Wolf!

[Brendone]

Originally Posted by Locke

And you gotta go with Air Wolf!

No way, more like

[Locke]

Originally Posted by Brendone

No way, more like

Sir...I say....

[CaptainYooh]

Originally Posted by Locke

...
The problem with electronically uploading documents to CRA, and yes, I know this sounds stupid, is that it can go anywhere....up to and including nowhere.
...

This is all rather depressing...

Thanks for the response.

[Slava]

Originally Posted by monkey brewery

Coincidentally, I was just looking into this this morning.

Can money be moved from my RSP, soon to be RIF, to my grandchilds RDSP without taking a tax hit? Is this something an accountant or tax lawyer can set up? Revenue Canada's site is quite vague on the RDSP.

I have an accountant, insofar as I have someone whose done my taxes for a decade, however my sense last year when I brought this up is that he is not that knowledgeable on the RDSP.

You want a financial advisor for this. Money can be moved from the RSP to RIF and from there it will come out (taxable) and could be moved to the RDSP from there. Off the top of my head, I’m not sure there’s a mechanism to go from your RIF to your grandchild’s RDSP without tax (but could find out for sure).

I know you can transfer from a deceased parent or grandparents RRSP/RRIF to the RDSP of a child or grandchild. I’m just not sure there is anything to facilitate this while you’re alive.

[atb]

Originally Posted by Locke

1. No. Not unless you literally Sue them. Which you generally dont want to do. Firstly because Tax Lawyer cost a fortune and secondly because they absolutely do hold grudges.

2. Thats not uncommon at all.

In fact, within the last few years I've noticed that CRA have even stopped sending out responses of how your case worked out.

If they deem that you owe them money they will send a NoRA accompanied by a bill with a threat of more penalties and interest.

If they deem that everything is fine you will likely get complete silence. "No news is Good News?"

They used to commonly issue statements notifying the Taxpayer that the matter is resolved and the case is closed, but thats hit or miss these days.

The problem with electronically uploading documents to CRA, and yes, I know this sounds stupid, is that it can go anywhere....up to and including nowhere.

I had an issue a few years back where I uploaded a client's documents and a third of it went to Winnipeg (where it was supposed to go) a third of it went to Surrey and a third of it went to Ottawa.

This wasn't 3 separate submissions. This was all submitted at the same time under the same confirmation number.

Why did it get broken up and go to 3 different places to be reviewed by a half-dozen different people?

CRA: *shrugs* All Shoulders. "Maybe send it again? Are you sure you sent it?"

I have a confirmation number. I PDF every confirmation number and save it in the client's file. How can it be simply 'gone?'

I know it sounds nuts, but it happens.

It's become absurd the past couple years. Feels like they are short on staff/competent staff while more tax legislation/filing obligations are being implemented. These put the onus on individuals and their accountants to decipher what needs to be filed to avoid significant financial penalties.

Kim Moody sums up my feelings pretty well: https://financialpost.com/personal-f...ax-legislation

[Locke]

In the meantime, the accounting profession has work to do to bring back the allure to prospective students. It’s a great career.

If you work with a good accountant, give them a hug this tax season. They’re valuable, important and dealing with very difficult issues. And it may be tough for you to find a replacement.

1. Its not the 'Accounting Profession's responsibility to 'bring back the allure' to prospective students. That sounds...well...it sounds like creepy 'grooming.'

2. Uh...no hugs required?

[PaperBagger'14]

So I wanna give a shout-out to Locke, had a 20 minute chat with him about some obscure ish tax questions and the dudes knowledge of tax and business implications is only paralleled by his humour. Full marks and solid guy.

[Sylvanfan]

Got mine done and filed a month early. Only 52 weeks till I kick the family out for a day so I can cuss up a storm finding everything and doing them for next year.