7 Myths about the Taxman - Page 2
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Thread: 7 Myths about the Taxman

  1. #11
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    Quote Originally Posted by Eclectic12 View Post
    The article I read said that the "innocent until proven guilty" from a regular court is reversed in tax court. The tax payer is guilty until the defendant can prove they are innocent.

    That's why I like to keep a lot of electronic documentation to show what I was thinking for what I did.


    Cheers
    This is the case specifically for Tax Court? I didn't realize that. But I know for CRA to reopen a statute barred year, the onus is on them to prove fraud or misrepresentation.


  2. #12
    Senior Member sags's Avatar
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    I talked to a CIBC small business representative and she said she gets calls every week from frantic small business owners who have had all their bank accounts seized by the CRA without a court judgement. Nothing in or out of the accounts until the debt is paid in full.

    Never underestimate the powers the CRA have been granted by the government to collect their money for them.
    Someone planted a tree a long time ago so I can sit in the shade.

  3. #13
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    Quote Originally Posted by AltaRed View Post
    I believe, the 7 year clock is with respect to re-assessments only.
    In Dec 2016 they arbitrarily re-assessed my 2006 taxes, as well as a bunch of intervening years -- that is 9 years back. They can basically do what they want and there is no enforceable statute of limitations.

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  5. #14
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    Quote Originally Posted by gardner View Post
    They can basically do what they want and there is no enforceable statute of limitations.
    That's true ... it's government within government...
    I checked CRA convictions(http://www.cra-arc.gc.ca/nwsrm/cnvctns/menu-eng.html) and found that majority people who went to jail/paid big fines are tax protesters from Paradigm Education Group. Just don't understand, did they really were hoping to win over CRA in CRA court with "natural person" excuse?!

  6. #15
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    CRA do not need a court injunction to empty your bank account. It is a simple as one of their collections officers sending a demand to you bank. A CRA auditor has the power to go into your bank branch and obtain your bank records...with or without your consent.

    Although this is not supposed to happen and the banks will never admit it, on receipt of a demand like this most banks will check to see if the person has any demand loans outstanding. IF there are outstanding demand loans, the bank will call the loan and empty the account. CRA gets what is left...if anything.

  7. #16
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    Quote Originally Posted by ian View Post
    Although this is not supposed to happen and the banks will never admit it, on receipt of a demand like this most banks will check to see if the person has any demand loans outstanding. IF there are outstanding demand loans, the bank will call the loan and empty the account. CRA gets what is left...if anything.
    Are you sure? CRA has first dibs on any estate assets to settle taxes due (after paying funeral expenses and estate administration costs I think). Demand loans are further down the list and unsecured loans are definitely down the list.

  8. #17
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    Yes. It has nothing to do with order of preference. It is more simple than that.

    -CRA collections officer generates a demand notice to the taxpayer's bank (s). The bank is obliged to empty the taxpayers account to satisfy the demand notice.

    -typically, when the bank receives the demand notice they check on the taxpayers O/S demand loans. Althought they are not supposed to (because they got the CRA demand notice first), they will call any bank demand loans to secure their position and to do their client a 'favour'. The concern is that if their client is a deadbeat taxpayer chances are the bank's demand loan may be in jeopardy. Any money left in the account is then used to satisfy all or part of the CRA demand. Though, in practice there is nothing left. People who don't or can't pay their taxes often treat their financial institutions in the same cavalier manner.

    Last edited by ian; 2017-03-21 at 03:18 PM.

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