| Canada Tax Shelter - Tax Shelter for Canadians | ||
| One of the things that we must be very clear about. If you enter into an arrangement with a provider of a tax shelter
in Canada, that is to say, a shelter with a Canadian tax shelter ID, you will be re-assessed. I didn't say
that you might be re-assessed - you will be re-assessed. You must understand this before you enter into
a tax shelter arrangement. See this: The
CRA is auditing all gifting arrangements. You will be bothered by the anti-avoidanced section of the Canada Revenue Agency (CRA) to fill out questionnaires explaining your understanding of the tax shelter and your motives for entering into the tax shelter. You will be asked to provide copies of all correspondance between you and the promoter, a copy of the front and back of your cheque that you used to pay for the shelter and copies of all marketing material that was provided to you. You will be asked to provide any legal and or accounting opinions that were provided to you or that you obtained on your own. Normally, the CRA will wait until the last possible moment before assessing. You will think that everything is ok until in the last week before the three year anniversary of your original notice of assessment you receive a notice of re-assessment. Then your world will fall apart. Conclusion: If you are going to get involved in a tax shelter, know that you are in for an eventual fight with the CRA. If you do not have the stomach for it, buy RRSP's. Go to RRSP.ORG. Read no further. If you are going to get involved with a tax shelter, try to make sure it is one that will likely win an eventual court battle with CRA. Try to find one that actually does some good in the world. |
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UNDER CONSTRUCTION - MORE TO FOLLOW |