January 26, 2023
16,000 Employees Added To The CRA In 2022 & Employment Up 37% Since 2015
The Canada Revenue Agency (CRA) is duplicating what all the other Tax Authorities are doing globally and that is significantly increasing their headcount.
What many people don't realize is that Governments prior to the pandemic were all bankrupt and as we have previously reported (2019 and earlier). The level of taxation (Personal and Sales Tax) is at a point where taxation levels can't get any higher. What is the government to do then to raise their tax revenue base? They close loopholes and they increase enforcement and start targeting "taxable benefits."
Quote from the articles :
"Over 16,000 employees were added to the Canada Revenue
Agency last year, accounting for almost half the increase in federal employment
in 2022. Since 2015, CRA employment is up 37 per cent to 55,000."
"THE Canada Revenue Agency (CRA) can now require taxpayers or any other
person to answer "all proper questions" and provide all reasonable
assistance for any purpose relating to the administration or enforcement of the
Income Tax Act
(ITA), including by submitting to oral questioning at a place designated by the
A taxable benefit? A company provided phone is a taxable benefit unless you can prove 100% (documentation and substantiation to support) of the usage of the phone is business only and not a single personal call, personal SMS, personal packet of data/app was used.
How realistic is that a Company provided phone has no personal usage? When the company or employee says 100% the next question an auditor is going to ask is "show me the cellphone contract for the employee that is their personal phone during the taxation year in question."
What many people don't know is that auditors have quotas that they need to hit. So when they start an audit they need to find anything!
We keep being told by CFO's and supposed Tax Experts that there is no way that the CRA is going after Nickles & Dimes like cellphones. Well we've met with enough companies that have been audited by the CRA on the taxable benefit topic (parking, cellphone, etc.) to know enforcement has actually gone up.
The NET NET of all of the above - Auditing Activity Is Going To Skyrocket
Some Interesting Facts & Developments :
- IRS will hire 87,000 auditors : https://lnkd.in/g2Vq6sRN
- Average American likelihood of audit has doubled : https://lnkd.in/gRTjnHfx
- IRS going after those earning less than $250,000 (Gig Workers, Employees, Self Employed, Small Business Owners) : https://lnkd.in/gu62Qpyd
- IRS Going After Nickles & Dimes By Lowering Reporting Threshold From $20,000 To $600 : https://www.linkedin.com/posts/thomdamstra_innovat...
- UK Government Updates WFH Tax Code Mandating Business Portion Of Your Smartphone Can Be Deducted : https://lnkd.in/ggsztV9T
- CRA updates policy on Cellphone HST for 2nd time : https://www.linkedin.com/feed/update/urn:li:activi..
- CRA Updates Taxable Benefit Guidelines For Company Provided Smartphones For The 4th Time On January 4th 2022 : https://www.linkedin.com/posts/thomdamstra_cra-upd...
- Canada's Top Tax Writer Just Lost His Detailed Audit For Cellphone Tax Deduction : https://www.linkedin.com/posts/thomdamstra_canadas...
- Why Are The Canadian & Global Tax Authorities So Focused On Tax Consequences Of Cellphones : https://www.linkedin.com/posts/thomdamstra_why-are...
- Our interview with Video Tax News that confirms the level of auditing activity on WFH & Connectivity audits skyrocketed in 2021 : https://www.linkedin.com/posts/thomdamstra_workfro...
- Canada Revenue Agency (CRA) To Target Gig Economy Workers & Sharing Economy Revenue Make Sure Your Cellphone Is Audit Proof : https://www.linkedin.com/posts/thomdamstra_canada-...
- Canada Revenue Agency (CRA) Going After The Taxable Benefit Attribution Of Personal Use Of A Corporate Asset : https://www.linkedin.com/posts/thomdamstra_managem...
- CRA Auditing Activity Of Businesses Has Dramatically Increased : https://www.linkedin.com/posts/thomdamstra_money-t...
CRA Targeting Gig Workers & Cellphones :
CRA Targeting WFH Deductions & Cellphones Are Part Of Standard Audit Letter
Protect Yourself In Previous Years & Get A Retroactive Deduction Of Up To $6,000
CRA Has Updated Tax Code For Gig Workers & Cellphone Deductions
Free Trial (Promo Code : Website11) : https://www.mobilityview.com/contact/direct-
Our Mobile Cost Management (MCM) Solution :
- 70% More cost effective than a Stipend for Smartphone Reimbursement
- 75% More cost effective than a Company provided phone
- Keeps companies labour law and tax law compliant
- Protects companies against class action lawsuits by their employees for failure to reimburse or adequately reimburse
- Keeps employees reimbursed & happy in a tax efficient lower cost way than a stipend or company provided phone
- Aligns your smartphone reimbursement policy to your mileage reimbursement policy. Tax authorities globally have required a mileage book for years and now require a "mileage book for connectivity costs" denoting the business vs. personal usage & cost
30 Second Explainer Videos On How We Lower Costs For Employees/Gig Workers & Employers :
Employee WFH / BYOD Reimbursement : https://lnkd.in/dvdupVwz
Employer WFH / BYOD Cost Savings : https://lnkd.in/dZ3wU9bW
Employee & Employer Cost Sharing For Win/Win : https://lnkd.in/grWgF8Tp
Carrying 2 Phones? Save $1,500 Annually On Cell Bills : https://lnkd.in/gCZXXXSM
Tax Deduction Changes For US Gig Workers : https://lnkd.in/ggAfRWhc
Tax Deduction Changes For Canadian Gig Workers : https://lnkd.in/gHFXa5nC
Tax Deduction Changes For Australian Gig Workers : https://lnkd.in/geT95ZTM
US Gig Workers Can Get Up To $3,000 In Retroactive Tax Deductions : https://lnkd.in/gd6DUbSN
Non-Canadian Employee & Gig Worker tax deduction : https://lnkd.in/gD5eEke
Gig Worker & Employee Tax Deduction/Reimbursement For Previous Years : https://lnkd.in/dG5MPP3X
Canadian Employee Tax Deduction Up To $1,000 : https://lnkd.in/gUhm-chC
Get $30 to $80 / Month Tax Free In The Form Of Reimbursement Or Tax Deduction : https://lnkd.in/gQzB8ujx
Smartphone global tax trends : https://lnkd.in/dbvArumk
Article Sources :
- 16,000 New CRA Auditors : https://financialpost.com/opinion/jack-mintz-federal-employment-growth-is-now-out-of-hand/wcm/0a5051ae-a10f-46bd-8d42-062f7b4ecb1e/amp/
- CRA can compel : http://www.canadian-accountant.com/content/practic...