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Review of child and family benefits and credits

Child and Family Benefits

Child and Family Benefits

 Review of child and family benefits and credits

What the Canada Revenue Agency is looking for?

The Canada Revenue Agency (CRA) continuously conducts reviews and audits of child tax benefits and other family benefits. The process usually starts off with a questionnaire or a phone call. Taxpayers get confused and don’t really know which documents the CRA is looking for. This results in Universal Child Care Benefits (UCCB) and Canada Child Tax Benefit (CCTB) payments being stopped or delayed.

To support your residential address you will be required to provide the following documents:

 

Part 1: Information about your residential address


Property Owner:

If you are the owner of your residence, a copy of your property tax bill for each year under review. The property tax bill should include all your personal details such as your full name, address of the property, and the year of the bill.

In addition you will be required to provide one of the following documents:

  • Mortgage papers
  • insurance policies
  • household bills (gas, electricity, cable, or telephone)
  • Drivers license and vehicle registration
  • Registered Retirements Savings Plan or Pension Plan documents showing your address

 Tenant:

If you are a tenant, a copy of your rental/lease agreement or letter fro the landlord. Documentation must cover the entire period under review. The letter from the landlord should include the following details:

  • The date the rent was paid
  • The address of the property you rented
  • The name of the person or business who received the payments
  • the signature of the landlord

In addition you will be required to provide one of the following documents:

  • Mortgage papers
  • insurance policies
  • household bills (gas, electricity, cable, or telephone)
  • Drivers license and vehicle registration
  • Registered Retirements Savings Plan or Pension Plan documents showing your address

Part 2: Information about your residency status


You will be required to provide any two of the following documents to support that the child was living with you and you were the primary caregiver for the entire time under review.

Any two of the following documents:

  • A copy of the child’s school registration/enrollment document or information/emergency contact sheet. It must be signed and certified by the school to be a true copy.
  • A letter from the daycare or school authority which includes the following information from their files:
    • Name and home address of the parent/guardian for each child
    • attendance records of the child
    • name and contact number of the person completing the letter
  • Copies of the Report cards for each year under review. The report card can only be used if it states the home address, attendance record and parent’s/guardian name
  • A letter from your family doctor or dentist confirming how long the child has been under the doctor or dentist’s care and indicating the home address and parent or guardian information as indicated on their files, for the period under review. The letter must be on letterhead and must be singe by the doctor or dentist.

In the event the CRA has disallowed your claim please contact our office for assistance. We can professional handle your CRA audit or review. Our tax accounting firm can professionally prepare and submit all documents and make sure everything gets resolved in a timely manor. Contact our accounting firm for all your personal, corporate, and small business needs. .

CRA Audit & Objections

CRA Audit & Objections

CRA Audit & Objections

  CRA Audit & Objections

Challenge the CRA / Dealing with the CRA? Here’s what you need to know.

Every year the Canada Revenue Agency (CRA) audits thousands of small and medium size businesses and issues notices of reassessments.  Many times the result of these reassessments requires these businesses to pay up to thousands and sometimes millions in tax, interest and penalties.

Is there a chance that these CRA reassessments can be wrong? Yes! It is absolutely critical that business owners are prepared to challenge incorrect reassessments. Handling reassessments improperly can have serious financial implications for your business.

Here are five things that you should be aware of when you receive the CRA’s notices of reassessment:

  1. The CRA isn’t always right. Notices of reassessments and tax disputes are not necessarily an indication that the taxpayer, or the accountant, has done something wrong. If you feel the CRA has it wrong, as a taxpayer you have the right to challenge the CRA’s interpretation and application of the facts and law to ensure you are not paying more than you have to.
  2. Act on time. You must file a notice of objection to dispute a notice of reassessment. Generally, you must file a notice of objection within 90-days of the date that the CRA mailed the notice of reassessment. If you do not deliver a proper notice of objection within the 90-day period, you may apply for an extension of time to object. The CRA will consider applications for an extension of time to object if the application meets all relevant conditions and if it is filed within one year of the 90-day period. However, the CRA may deny your application for an extension of time and, therefore, it important to file a proper notice of objection within the 90-day period.
  3. The onus is on you. The normal reassessment period is three years for individual taxpayers and four years for corporate taxpayers. If the CRA issues a notice of (re)assessment within the normal reassessment period, the onus is on you to prove that the assessment is wrong in fact and law. You should be prepared to present factual and legal support for your position that the reassessment is wrong. If the CRA issues a notice of reassessment outside the normal reassessment period, taxpayers should understand the impact of this shift in the burden of proof. This is an opportunity to take advantage of the shift and make strategic decisions.
  4. Know what you are talking about. In addition to knowledge of the relevant legislation, the tax dispute process is governed by the case law, rules of procedure, the onus of proof, the standard of proof and the rules of evidence. In our experience, the party with the greater understanding of the legislation, case law and rules often has a significant advantage.
  5. Contact the right people for help.Clients often struggle to research and retain the right tax accountant and tax lawyer. We recommend that clients take the time to understand their options and speak to competent tax professionals.

This is an example where the CRA made a mistake and resulted in Mr. Irvin Leroux losing millions of dollars.

It was a million-dollar mistake that turned in to a 13-year battle. A British Columbia man lost almost everything in a tax battle with the Canada Revenue Agency. The CRA admits they were wrong, but now refuses to repay his money. His original documents were shredded by the CRA auditor.

The judge found that the auditors owed Mr. Leroux a duty of care and that they breached it in the manner in which they imposed penalties. However, the judge concluded that she was unable to find a causative link between that breach and Mr. Leroux’s losses.

Mr. Leroux had a legitimate position to put forward in saying that if the assessments had been done correctly in the first place, he might have been able to handle all the other problems he had.

The full case can be found here.

Contact our firm Cheema CPA Professional Corporation for all your CRA review and audit needs. Our team of tax accountants and lawyers can professionally handle your file.