Caught in a Donation Scheme?
The past few years have witnessed many hard working individuals being duped by tax crooks selling too-good-to-be-true methods to reduce tax burdens. One such fraudulent method are donation schemes where you end up with a tax receipt worth more than your donation. These crooks take advantage of the complexity of the income tax system combined with the myth that there are secret ways of reducing taxes owed that only the rich know about. This mix of confusion and conspiracy theory has unfortunately resulted in honest taxpayers filing their taxes wrongly, and now being audited. A Tax Accountant Toronto can help you if you’ve been fooled by a crook. You can get the help of a Tax Accountant Toronto to file a Voluntary Disclosure application before the CRA comes knocking. A Voluntary Disclosure can help you avoid penalties, fines, and criminal prosecution, but you have to act fast.
One recent example is that of a Nurse who through a friend was introduced to a company of scammers. These scammers presented themselves as tax professionals and fooled her into believing that small donations can result in larger tax receipts that would then save her money on taxes. Had she contacted a Tax Accountant Toronto, she would have been told that she was being duped. So not only is this otherwise honest person on the hook for the taxes, but also for penalties and interest. A Voluntary Disclosure by a Tax Accountant Toronto would have avoided this. In her case, and in similar cases, the CRA is imposing gross negligence penalties and the courts are upholding these assessments. The courts are saying that where a taxpayer doesn’t get other professional advice, for example from a Tax Accountant Toronto, they can’t say they were duped. There is an obligation on taxpayers to investigate tax plans to make sure they are legitimate. Relying on a friend or a friend of a friend is not enough.
The CRA is actively looking for others who are part of scams such as donation schemes. Tens of thousands of Canadians have already ended up owing very large amounts of money, and some end up losing their life savings and homes. Before you are caught, get a Tax Accountant Toronto to file a Voluntary Disclosure for you. A Voluntary Disclosure will get you out of the danger zone. You will still have to pay the tax owing and some interest, but you won’t have the crushing effect of penalties and possible criminal prosecution. A first step is calling a Tax Accountant Toronto to discuss your case. The Tax Accountant Toronto will then prepare a Voluntary Disclosure for you, using the information you provide, and then work out a payment plan with the CRA.
Donation schemes are just one of the many scams out there putting honest Canadians in deep tax debt. The CRA’s Voluntary Disclosure, with the help of a Tax Accountant Toronto, is your way out. Get amnesty and peace of mind for you and your family. Don’t risk your hard earned savings and property because you were taken advantage of. Reach out to a Tax Accountant Toronto today.
Disclaimer: Articles are for general information only and do not constitute tax advice. They cannot be relied upon.
Sam Faris is a Toronto-based Chartered Professional Accountant who practices as an independent consultant on high-level Canadian tax matters and handles disputes with CRA. He has recently published an article a business magazine: HERE.