Ravinder Makkar CPA assist you in Tax Audits

01/06/2024

Review from one of my clients..
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Ravinder Makkar CPA is incredible when it comes to taxes. As a commercial real estate builder, I got referred to him by a friend who runs a real estate brokerage. Let me tell you, Ravinder is hands down the best tax expert I've ever met. He knows so much more than any tax lawyer in the downtown area.

He's got the skills and experience to help with tax disputes and even deal with super advance tax matters. Ravinder is like a confident negotiator when it comes to talking with the tax authorities and other involved parties. What I really admire is his integrity and honesty. He always looks out for his clients' interests and rights.

I can't recommend Ravinder and his firm enough if you need accounting or tax services. He's trustworthy, knowledgeable, and really good at what he does. His professionalism, expertise, and dedication truly make him a standout in this complex tax field

12/15/2021

CRA Tax Audit…..Tax payer relief after completion of the audit

To request cancellation of a penalty and/or interest after the audit has been completed, the taxpayer must submit a written request and may use Form RC4288, Request for Taxpayer Relief – Cancel or Waive Penalties or Interest.

Taxpayer-initiated penalty and/or interest relief requests received, are part of the Taxpayer Relief Program administered by the Taxpayer Relief and Service Complaints Directorate, Appeals Branch. However, any taxpayer-initiated penalty and/or interest relief requests received, and the following workloads remain the responsibility of the Compliance Programs Branch (CPB):

• elections;
• statute barred;
• proactive;
• GST/HST wash; and
• gross negligence penalties.

For CPB workloads, written requests are sent to the first level supervisor or the taxpayer relief committee or section, depending on the structure of the TSO. The taxpayer relief committee or section will obtain and examine all audit documents and will consult the auditor if they need more information.

Ravinder Makkar
Chartered Professional Accountant
905-791-6666

* We can professionally assist you to CRA in Tax audits, HST audits, Payroll audits and Tax appeals.
* The above information is general information, does not apply to all client situations and is situation specific.

07/17/2020

Change in use of Principal Residence

You can be considered to have sold all or part of your property even though you did not actually sell it.

For example, this is the case when:
• you change all or part of your principal residence to a rental property;
• you change your rental property to a principal residence; or
• you stop using a property to earn or produce income.

Every time you change the use of a property, you are considered to have sold the property at its fair market value and to have immediately reacquired the property for the same fair market value, unless you make an election as described below. The resulting capital gain or capital loss (in certain situations) must be reported in the year the change of use occurs.

If the property was your principal residence for any year you owned it before you changed its use, you do not have to pay tax on any gain that relates to those years. You only have to report the gain that relates to the years your home was not your principal residence.

Ravinder Makkar
Chartered Professional Accountant
905-791-6666

* The above information is general information, does not apply to all client situations and is situation specific.

03/17/2020

02/14/2020

Unreported worldwide income

An individual’s residency status is critical in establishing their Canadian tax liability and the tax treatment of the individual’s worldwide income. Residency status should not be confused with citizenship. For example, a citizen of a country other than Canada who has significant residential ties in Canada may be deemed to be a resident of Canada.

Residents of Canada have to report their worldwide income to the CRA. Non-residents only have to report their Canadian-source income, unless a tax treaty provides otherwise. An individual’s residency status is therefore essential in determining what income must be reported.

An individual’s residency status is determined on a case-by-case basis in light of many facts. These include residential ties in Canada, purpose and duration of visits outside Canada, social and economic ties outside of Canada.

Ravinder Makkar
Chartered Professional Accountant
905-791-6666

* The above information is general information, does not apply to all client situations and is situation specific

02/07/2020

Change in use of Principal Residence

You can be considered to have sold all or part of your property even though you did not actually sell it.

For example, this is the case when:
• you change all or part of your principal residence to a rental property;
• you change your rental property to a principal residence; or
• you stop using a property to earn or produce income.

Every time you change the use of a property, you are considered to have sold the property at its fair market value and to have immediately reacquired the property for the same fair market value, unless you make an election. The resulting capital gain or capital loss (in certain situations) must be reported in the year the change of use occurs.

If the property was your principal residence for any year you owned it before you changed its use, you do not have to pay tax on any gain that relates to those years. You only have to report the gain that relates to the years your home was not your principal residence.

Ravinder Makkar
Chartered Professional Accountant
905-791-6666

* The above information is general information, does not apply to all client situations and is situation specific.

02/04/2020

CRA Audit Triggers

Canada Revenue Agency (CRA) has drastically increased audits of small- to medium-sized enterprises.

In selecting taxpayers for audit, CRA will often pay closer attention to cash businesses such as retail shops, construction and restaurants, businesses where receipts may not be needed, and businesses whose margins of incomes are not within the norm for that industry. CRA will also look more closely at taxpayers who claim rental or business losses.

Audit projects:

Then there are CRA audit projects. At various times, CRA will target certain groups or industries that tend to have a high level of tax non-compliance, such as construction, real estate or hospitality industries.

Secondary review:

In other cases, CRA may conduct a secondary review. That's when CRA audits a spouse, investor, supplier or subsidiary of an individual or company on which it is already doing a main audit.

Another Major Factors in a Tax Audit:

Failure to remit source deductions for employees, such as Tax, CPP and EI, on a regular basis or failing to pay your HST correctly and on time could also lead to an audit.

Ravinder Makkar
Chartered Professional Accountant
905-791-6666

We professionally assist in following types of Audits:

*Corporate tax *HST *Payroll *Networth *WSIB *Business income v/s Capital gain * Asset Verification, etc

* The above information is general information, does not apply to all client situations and is situation specific.

10/10/2019

Capital Gain or Business Income

A taxpayer's intention at the time of purchase of real estate is relevant in determining whether a gain on its sale will be treated as business income or as a capital gain.

At the time of acquiring real estate, it is possible for a taxpayer to have an alternate or secondary intention of reselling it at a profit. If this secondary intention is carried out, any gain realized on the sale will usually be taxed as business income.

The more closely a taxpayer's business or occupation (e.g. a builder, a real estate agent) is related to real estate transactions, the more likely it is that any gain realized by the taxpayer from such a transaction will be considered to be business income rather than a capital gain.

Ravinder Makkar
Chartered Professional Accountant
905-791-6666

* The above information is general information, does not apply to all client situations and is situation specific

09/21/2019

CRA and Tax Information

The Canada Revenue Agency (CRA) is redesigning the correspondence it sends to Canadians, including the Corporation, and Goods and services tax/ harmonized sales tax (GST/HST) notices of assessment (NOA) and notices of reassessment (NOR). The CRA has made changes to how the notices are structured, designed, formatted, and written, making the information easier to read and understand.

CRA is sending out two new, simple, and easy to read notices of assessment – one for Corporations, and one for GST/HST. The re-designed notices have the most important information on the first page, in a clear and simple format.

Ravinder Makkar
Chartered Professional Accountant
905-791-6666

* The above information is general information, does not apply to all client situations and is situation specific