Hello David:
I am interested in finding out your rates.
This is our story. Please skip it, if you are too busy. Go to the
end and respond as you see fit.
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I live with a xxxxxxx immigrant (male, xx yrs. old) who did not
file his taxes for 10 years. Rev Can froze his business account
in April 2005 after he told a collection agent at Rev Can to go
F*#_ himself.
When we went to an rev can apt in June 2005, I asked if I could
prepare the returns for the ten year's worth of taxes.
I knew that he was self-employed the enitre time and that the
returns filed on his behalf by rev can did not reflect any of his
incurred expenses (deductions) .
We filed the return for 2004 almost immediately. We received a
notice of assessment for 2004 accepting the filed return. They
even gave his a GST credit, that reduced the amount they say he
currently owes.
On 8 August 2005 we presented all nine remaining years to rev
can.
An auditor called in the fall. I met with her for three hours on
Monday 21 November. I gave her the following items:
a spreadsheet (hardcopy & an excel spreadsheet) for the 10 years
filed
a spreadsheet (hardcopy & an excel spreadsheet on disk) for 2005,
she agreed that she was not auditing 2005, as it was not yet
filed
I explained that I only started living with Peter 15 February
2004. I explained that Peter was not a details person (I am) and
did not keep receipts. However, he was much better now and that I
was completely confident that the information for 2005 would be
accurate.
She asked a lot of questions. I answered each question honestly.
She took my files (all receipts, some of my notes, selected by
me) and I signed a form.
The collection man phoned Tuesday 29 November. xxxxxxxx gave me
the phone. I explained that we were waiting to hear back from the
audit department. He was surprised the audit department was
wasting time with us, because he knows we have nothing that rev.
can. can take.
We are now considering bankruptcy, however, there are additional
developments, which I can explain if you phone us, that make this
a last resort choice.
I am an xxxxxxxxx immigrant to Canada (landed immigrant,
application for Canadian citizenship filed in October 2005).
Both of us have misunderstandings of how things work in Canada.
His are based on his xxxxx backgound, mine are based on my
xxxxxxxness.
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He met a friend named Wayne at the Ivanhoe on Friday 6 Jan 2006.
Wayne gave us your name.
I googled you and am sending this message.
I expect to receive the notice of assessment on 10 January 2006.
The taxman (not you) is still telling us that he owes $70,000 in
back taxes, interest and penalties.
I do not agree with this assessment. According to the returns I
filed, he only owes $1700 (not including penalities and
interest). The rev can taxman says that they are never going to
ignore the penalities and interest. I don't agree with this
either. I've done some research.
However, there are other legal ramifications that we would like
to discuss.
Please contact me by return email.
If there is a delay in my response, it is only because I am new
to this technology and sometimes my system breaks down.
thank you
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david ingram replies:
I am surprized at the collection officer's attitude. They KNOW
that arbitrary assessments are overturned all the time when one
finally files the tax returns.
If you explained to the collection officer that your figures were
$1,700 as opposed to $70,000, it is my experience that they will
haul back on the reins and wait for the actual new assessments to
come out. I suggest that you hold off until you have received
the assessments before making any decisions. .
In a similar case, we have just filed returns back to 1994 (when
demanded by the CRA) and am asking for and expect to receive a
refund of over $20,000 when they were billing the same person
over $60,000.
If bankruptcy is a possibility however, you should be talking to
Murray Morrison, a Bankruptcy lawyer in Surrey . His phone
number is (604) 930-9013.
I recommend that ANYONE CONSIDERING BANKRUPTCY contact Murray or
a similar bankruptcy lawyer BEFORE consulting a trustee. When
you consult the Trustee, he or she is automatically working more
for the creditors than for you. A lawyer can help you with what
to say, what not to say and inform you of your rights BEFORE you
make / take the step. BELIEVE ME, I have been there and Murray
Morrison made an unpleasant experience much more comfortable.
I tend to charge between $428 and $856 for tax consultations and
that can include preparation if you have paperwork with you.
David Ingram expert income tax help and preparation of US Canada
Mexico non-resident and cross border returns with rental dividend
wages self-employed and royalty foreign tax credits
David Ingram's US/Canada Services
US / Canada / Mexico tax, Immigration and working Visa
Specialists
US / Canada Real Estate Specialists
Home office at:
4466 Prospect Road
North Vancouver, BC, CANADA, V7N 3L7
Cell (604) 657-8451 -
(604) 980-0321 Fax (604) 980-0325
Calls welcomed from 10 AM to 10 PM 7 days a week (please do not
fax or phone outside of those hours as this is a home office)
email to taxman at centa.com
www.centa.com www.david-ingram.com
Disclaimer: This question has been answered without detailed
information or consultation and is to be regarded only as general
comment. Nothing in this message is or should be construed as
advice in any particular circumstances. No contract exists
between the reader and the author and any and all non-contractual
duties are expressly denied. All readers should obtain formal
advice from a competent and appropriately qualified legal
practitioner or tax specialist for expert help, assistance,
preparation, or consultation in connection with personal or
business affairs such as at www.centa.com. If you forward this
message, this disclaimer must be included."
Be ALERT, the world needs more "lerts"
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