Best Tax Preparation Services in Elora, ON

Deceit &Tax avoidance: Charles Csak (Mr. C) moved to Canada. At the tax court, his wife Maria Csak (Mrs. C) explained she planned to marry her husband in 1988 or 1989 but, without her knowledge, he married someone else! That marriage lasted two days and a divorce followed. Mr. and Mrs. C reconciled and she would not marry unless he gave her the home. They married in 1992 and he signed over the home. In 1988, Mr. C participated in an aggressive tax avoidance scheme and claimed significant tax losses for the 1988 and 1989 taxation years, which CRA won at tax court. Then Mr. C died and his estate owed the CRA almost $5 million without enough assets for CRA collectors. According to the tax act, if a person (Mr. C) transfers property to a related person at less than fair value, the transferee (Mrs. C) is liable for any taxes owing by the transferor or his estate up to the value of the property received. The home was valued at $950,000 when Mrs. C received it, and the CRA said that's what she owed. But Mrs. C argued that Mr. C and his estate had no tax debt, since the CRA had waited too long to reassess him. The CRA generally has three years from the date of the first assessment to either issue further reassessments or secure a waiver extending the three-year limit. When CRA received the 1988 waiver from Mr. C, it did not stamp the date received. The court decided there was insufficient evidence to determine when exactly the waiver was received and the case was dismissed.