Why the Chinese Community Should be Alert to the CRA
There is much concern amongst Canada’s Chinese community regarding the Canada Revenue Agency. WeChat, Facebook, blogs and newspapers often feature questions from Chinese people about tax obligations and stories about Chinese people who are unexpectedly charged large amounts of tax. At Blachford Tax Law, we have helped many Chinese clients who were facing significant disputes with the CRA.
It is not surprising that the Chinese community faces these challenges. There are many activities that Chinese people are involved in that have sophisticated tax implications. For example: operating a business, investing in real estate and transferring money in and out of the country.
Here are three important facts that Chinese people should know about dealing with CRA:
CRA is very suspicious when it comes to cash transactions. They have many ways to try and prove that a business owner is underreporting cash, so keep detailed records of the cash that you receive.
CRA is currently targeting real estate transactions and international transfers of electronic funds.
It is very possible to succeed in a dispute with CRA. Most people are partially or fully successful when they dispute a CRA reassessment.
There are time deadlines for challenging a reassessment, sometimes as short as 90 days. So get professional help quickly to avoid missing a deadline.
If you think that you might have a potential tax problem, but CRA hasn’t contacted you yet, it is still wise to get professional advice because there are actions you can take to avoid a dispute.
Disclaimer
This article is for informational purposes only and does not constitute legal advice. If you wish to discuss your issue with a lawyer, contact us today at (613) 702-0322 or info@blachfordtaxlaw.com