Canada’s Most Prominent Tax Training Firm Interviews Thom Damstra On The Tax Consequences Implications Of Cellphones : Work From Home & Company Provided

March 22, 2022
Canada’s Most Prominent Tax Training Firm Interviews Thom Damstra On The Tax Consequences Implications Of Cellphones : Work From Home & Company Provided

VideoTax News is Canada’s oldest and most prestigious tax training firm. They have trained well in excess of 20,000 Accountants, Book Keepers, Tax Preparers and CRA Auditors on the consequences and implications of changes in the Canadian tax code.

They are seeing increased audit activity, as reported by their members and clients.

Given the fact that virtually every tax payer has a Smartphone and that they are using a Smartphone for both business and personal, the ramifications of what mobilityView is doing is significant and impactful to every Canadian that is earning an income.

The nature of Work From Home is such that there is going to be an increased need to separate your business costs from your personal costs especially when the item/object/location is being used for both purposes.

It is why the CRA has now for the 4th time (Jan 4th 2022) updated the taxable benefit of a company provided Smartphone and for the 1st time on Company Provided/Paid For Home Internet :

It is also why from an HST perspective they have updated their policy on at least 3 occasions making VERY explicit the need to only be claiming the documented and substantiated BUSINESS only portion of the HST as an ITC. So only the business portion of a company’s cellphone may be claimed as an HST ITC, and not the full amount (updated January 2022) :

The CRA is aggressively increasing its audit activity across the board. Per the interview, Smartphones are low hanging fruit for any auditor to get a win on the board to meet their revenue quota targets. It would appear that cellphones are now a standard audit item (company or personal) in any company audit, as evidenced by the audit letter received by Jamie Golombek.

It is no surprise that Jamie Golombek (Canada’s foremost tax journalist and writer for the National Post) wrote in February that his receipts were not accepted by the CRA (Smartphone and Home Internet) as being adequately documented to substantiate the business vs. personal portion :

Tim Cestnick (tax journalist for the Globe & Mail) wrote in May of 2022 warning Gig Workers that the likelihood of an audit
(revenue and expenses like cellphones) had gone up dramatically due to GigEconomy being a focus area of audit activity for the CRA :

It is one of the reasons why we invented Time Machine for companies, their employees, and Gig Workers/Contractors/Freelancers : Reduce your audit risk and the associated interest & penalties levied by the CRA :

Some Interesting Market Research We Have Done :

75% of employees never want to go back to an office Monday to Friday 9am to 5pm :

On average employees wish to work 3.5 days per week at home :

59% of employees get neither a phone nor reimbursement for BYOD :

80% of employees get neither home internet provided for them nor get reimbursed :

90% of employees feel they should be reimbursed for the business use of their personal IT assets :

Before the pandemic & WFH started - Class action lawsuits for failure to adequately reimburse were spiking :

Featured By Forbes For US (corporate tax deduction calculation) & Canadian tax consequences (taxable benefits & HST) of a company provided phone :

30 Second Explainer Videos Of What We Do :

Would you like to get reimbursed for previous year's usage and cost? How about a tax deduction for 2021? Are you a WFH Employee/Gig Worker? Watch our Time Machine video :

Save $1,500 Annually On Cell Bills :

Canadian Gig Workers :
US Gig Workers :
Australian Gig Workers :

Employer cost savings :

Employee & Gig Worker tax deduction :
Smartphone global tax trends :

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Link To VideoTax News Interview :