Articles
Articles, blogs, and thought pieces, written by me
CANADIANS LINKED TO THE PANAMA PAPERS
Below is the complete list of Canadian officers of entities associated with the Panama Papers. If your name is in the list below, it means that you have been linked to the Panama Papers. If you are affected, call Barrett Tax Law at 1-866-278-8424 or visit www.barretttaxlaw.com immediately for legal protection and a free consultation with a tax lawyer. Discretion is assured. 0746291 B.C. Ltd. 0809979 BC LIMITED 0922372 B.C. LTD 1036159 Ontario Limited 1304470 Ontario Limited 2046086 ONTARIO LTD. 2106767 Ontario Inc 2146830 Ontarion Inc. 2329452 Ontario Inc 2962594 Canada Inc. 4301081 CANADA INC. 881281 Alberta Ltd 8838844 CANADA INC. Abbey Kreisman Abdellah Hommady Abdi Abdullahi Hersi Abraham Weitzman Adam Boniek Adrian D. Robinson Advance International Exploration Ltd. AFRICAN AURA MINING INC. AFRICAN AURA MINING INC. African Aura Mining Inc. African Aura Resources Limited Ahmed Mohmoud AI JUN JIN Akash Sahai Al Jaber Equipment, Ltd. Alain E Roch Alain
Hey Mr. Putin and Mr. Signumdur … We can help you with your Panama Papers tax problems
For most understanding tax matters can be a brain-numbing experience. With the recent stories of the Panama papers, it may be a challenge to truly comprehend what this international tax scandal is really about, why it affects Canada, and how the Canada Revenue Agency (“CRA”) is getting involved. Here’s some background: The Panama Papers were leaked through an anonymous source. News sources are reporting that the papers contained 2.6 terabytes of data and were sent to a German newspaper. They consisted of spreadsheets, emails, and passports showing how the wealthy allegedly hid money in offshore accounts. Over 200,000 companies and 14,000 clients were connected to the leaks, not excluding powerful world leaders, such as Russian President, Vladimir Putin and Iceland’s Prime Minister, Signumdur Gunnlaugsson, who has recently stepped down from office amid the leaks. With this in mind, this is the gist of the Panama papers… Powerful individuals decided to
Scammers Impersonate Barrett Tax Law Employees
It has come to our attention that there are scammers claiming to be working with Barrett Tax Law, when in fact they do not. If you receive a call from a man named Timothy Rufus, claiming to be working with our firm, or calling from this phone number: (613) 366-5293, please be advised this is a scam. He introduces himself to victims as an advocate for the Canada Revenue Agency (“CRA”) and that he is working with Barrett Tax Law. If you receive a call or message from this man, disconnect immediately and call the authorities. These tax scams are an ongoing issue and the RCMP has issued multiple warnings to Canadians. These scammers have been impersonating CRA employees and demanding that taxpayers make immediate payments for months; however, it has recently come to our attention that they are claiming to be working for Barrett Tax Law as well. Furthermore, our firm
The Forgotten Tax: Withdrawing from US Dollar Accounts
The Canadian dollar has dropped more than 25% since only a short while ago when it was on par with the US dollar. As a result, not only has the cost of living increased dramatically, but also costs for those visiting the United States have skyrocketed. The depressed loonie provides a nice opportunity to cash-out on funds that collecting dust in US dollar accounts. What most people don’t consider however is that withdrawing the money can trigger a possible tax hit. For those who have cash in an American account, it may be an attractive time to cash out and buy Canadian dollars. But assuming the money was purchased earlier at a more favourable rate, a taxable capital gain will be incurred on the profit. For example, if one purchased $10,000 USD in 2014 for $10,0000 CDN when the dollar was at par and deposited it into a USD account,
Watch out tax shelter participants: The CRA may be able to collect 50% of disputed amounts before the courts rule!
Many taxpayers have participated in tax shelters and donation schemes and have filed objections with respect to reassessments issued by the Canada Revenue Agency. Many of these objections are outstanding, and some are already before the courts. Generally when you file a Notice of Objection, the CRA is prevented from initiating legal or collections action on personal or corporate arrears. However, if you were involved in a tax shelter after 2012, the CRA will now actively pursue collections initiatives on 50% of the disputed amount. Participants of such shelters as GLGI, Mission Life participants in the Evident Tax Alternatives and Demara Consulting programs can all expect aggressive collections action. If you were affected by the a tax shelter or a donation scheme and want to learn more, or if you need assistance in structuring the repayment of your tax debt, do not hesitate to contact Barrett Tax Law at 1-877-8-TAX-TAX
Trouble Ahead for Taxpayers Involved in the GLGI Program
The Tax Court has concluded that the donation program known as Global Learning Gift Initiative (or “GLGI”) is in fact a “sham”. The GLGI website states that this program works as a “gifting arrangement tax shelter where Canadians are able to utilize available tax incentives by donating courseware licenses and cash to Canadian registered charities”. The program also advertised that donors would be able to “enjoy possible tax savings made available under the Income Tax Act” by issuing donation receipts to those who have participated. After being subject to an audit by the Canada Revenue Agency (“CRA”), they found that the GLGI program was illegitimate and that the program was in reality pocketing 20% of the donations. The Tax Court ruled that taxpayers who participated in the GLGI program did so because of the tax benefit they would receive, and not for the purpose of donating to charity. As a
Eligible Dependant Tax Credit Requirements
If you’re a parent interested in the eligible dependant tax credit, then being aware of the rules and regulations is crucial. The reason why is quite simple. There are a number of rules involved in the eligible depend tax credit which could prevent you from eligibility. It’s also important to note that the dependant does not have to be under the age of 18. First, you must meet all of the following conditions: • You did not have a spouse or common-law partner or, if you did, you were not living with, supporting, or being supported by that person (i.e. you are single); • You supported a dependant throughout the year; AND • You lived with the dependant (in most cases in Canada) in a home that you maintained. Please take note that you cannot claim this amount for a person who was only visiting you. In addition, at the time you
CRA Scams Continue Nationwide
Canadians beware: The RCMP has issued yet another warning about Canada’s ongoing tax scams. It has come to light that there are people impersonating Canada Revenue Agency employees in an attempt to steal your hard earned money. According to Global News Edmonton, “in the months of July and August alone, there have been 17 reports of scams to the RCMP […], some tricking people out of thousands of dollars.” There have been warnings issued not only in Edmonton but across the country. If you receive a phone call, e-mail or even a text message from someone claiming to be from the Canada Revenue Agency (“CRA”), how can you be sure they are who they claim to be? These imposters choose taxpayers at random from the phone book, pretend to be Collections agents from the CRA, and not only scam you for all your money but will also threaten your freedom.
Government Toughens Up on Snowbirds
If you’re a Canadian who moves to a warmer country in the winter then beware of Canada’s new border exit-tracking system. CTV News reports that the federal government plans on cracking down on snowbirds that leave Canada for too long but still collect social benefits – benefits the Canadian government believes snowbirds aren’t entitled to. The Canadian Press reports that “the government is using the new border exit-tracking system to avoid paying hundreds of millions of dollars in social benefits now going to people who shouldn’t receive them due to [long] absences from Canada.” As a result, the Canada Revenue Agency as well as Employment and Social Development Canada are expecting to save between $194 million and $319 million over a five year span, once the new border tracking system is entirely in place. CTV reports that at this time “the tracking system involves exchanging entry information from people at the
Thinking of Purchasing a Franchise? Buyer Beware!!
If you are thinking of purchasing a franchise, it is imperative that you be protected and that you fully understand your rights and obligations prior to getting started. Although there are many perks to entering into a franchise, there are also heavy restrictions and hidden pitfalls. Before purchasing a franchise, it is important to be properly advised about: • Business structure; • Non-competition agreements and obligations; • Restrictions on business activities; • Availability of capital; • Borrowing ability; • Franchise fees; • Taxes, and legislative responsibilities; • Use of trademarks and the franchisor’s business system; • Degree of control the franchisor may exercise; and • Length of time the franchise is granted for. Doing your due diligence and speaking with a knowledgeable lawyer at Barrett Tax Law prior to purchasing a franchise may save you from entering into an agreement that you didn’t bargain for. And remember, once the
