Terry and I were at a dinner recently and someone in business at our table was bragging about the meals and entertainment and car expenses he was fully deducting. It was clear that not all of these should be deducted and of course the chances of him being caught are very slim as very few tax returns are actually verified. That is unless someone calls CRA’s new snitch line.
Tax slackers beware. Tax tips took on new meaning this year when the Canada Revenue Agency’s “snitch line” went live. Informants can use it to report tax evaders. There is even a finder’s fees of 5% to 15% of tax collected if a tip brings in $100,000 more than the CRA could find on its own. So play safe. There is enough legitimate deductions to reduce your taxes anyway. Get a good accountant or talk to us. We provide sound tax tax advice with your tax preparation.