February 11, 2022
Canada's Top Tax Writer Just Lost His Detailed Audit For Cellphone Tax Deduction
The CRA also asked for a copy of my T777, along with receipts and documents to support the expenses claimed for office supplies and other things such as employment use of a cellphone.
Would you believe that we’ve been told by a Tier 1 Accounting Firm in Canada that you mobilityView are wrong?
My response – Why did you go BYOD then? I do hope that Stipend you are paying instead has been reported correctly.
Would you believe that a Top Tier 1 Law Firm said “CRA is never going to enforce this and this is not an issue.”
My response – You are wrong and I hope you aren’t giving your clients this advice!
Would you believe a top tax expert in a Vertical that should know better said “this is not a taxable benefit and we have no issue”
My response – You are wrong and where is the proof to substantiate your statement… Curious… What is your historic track record in the area of taxable benefits?
Could it be that the reason all of these people are saying that we are wrong and they are right is because they happen to be providing a cellphone to their employees and have realized that Jamie Golombek warned all Canadians that the times were a-changing in December of 2016 : https://www.mobilityview.com/media/related-links/devils-in-the-data-when-it-comes-to-writing-off-your-cellphone-bill-as-an-employment-expense
I wonder if they have calculated what the taxes and interest and penalties are…. More importantly what are they going to tell their employees when the CRA comes knocking on their door for 6 years worth of untaxed taxable benefits, interest and penalties… How much extra is it going to cost their employers? Do you think the employees are just going to pay it to cover their employer’s mistake?
It is why we invented Time Machine to reduce your audit risk and the associated interest & penalties you were going to incur : https://www.linkedin.com/feed/update/urn:li:activity:6873998830417920000/
You do know that the tax authorities are the only governmental body that says “we find you guilty and the amount we are charging is $X…. Prove why it should be lower”
Canada’s foremost tax writer just wrote an article where his #WorkFromHome tax deduction around cellphone was denied due to lack of substantiation and documentation….
Guess what people… The CRA has been saying for a number of years you need to have a mileage book denoting the business vs. personal usage and cost of your Smartphone… A guess or an estimate is not going to cut it, as they will say “show me the substantiation to your guess.”
Can you guess your mileage? Why do you think the CRA will let you do the same for Smartphone costs?
We keep WFH employees on the right side of an audit using our Time Machine for audit protection for years in the past for when the CRA comes knocking just like they did with Jamie Golombek : https://www.linkedin.com/feed/update/urn:li:activity:6873998830417920000/
We allow WFH employees to get tax deductions or tax free reimbursement for the business use of the Smartphones : https://www.linkedin.com/feed/update/urn:li:activity:6802959446348840960/
We keep employers and employees on the right side of an audit and help both share costs : https://www.linkedin.com/feed/update/urn:li:activity:6739180994953379840/
We lower costs for employers : https://www.linkedin.com/feed/update/urn:li:activity:6775789068920999936/
If your employer provides you a phone; you should get our Time Machine solution that will document the business vs. personal usage and cost for before the CRA comes knocking : https://mobility-view-apps.square.site/
Free 30 Day Trial Of Mobile Cost Management (Reimbursement and Tax Deduction For 2022 & Beyond Promo Code JG-01) : https://www.mobilityview.com/contact/direct-trialBack