Originally Posted by cantoo
ff, we lost the fight for sure. They want $15,000, plus $2000 in interest and so far they have clawed back another $2000 in bits and pieces. It took over a year and we still have very little idea what we did wrong. They just gave us a number and said we owe it and payment is due in 15 days. Then ever third day or so we received another love letter clawing back other stuff like baby bonus, tax credits, low income refund etc. I'm afraid to get the mail anymore. I told the tax gentleman that they were really encouraging people to do cash business. I also told him we might start back up doing chemical spraying then I could afford to pay his taxes. We deal with another bigger company now. Did I mention we had a GST audit too, lost that one as well.
We're hoping for a better year this year, cutting lose any customers that even look sideways at us.
Hey, I hear you, they came back from auditing 2 years and 6 months GST and said we had $75000 in unclaimed income and we owed $2000 in GST. The income tax portion was $20000 owing then then same as you went after HST credits child tax benefit and even sent my wife a bill for $5000 for baby bonus for a total of $30000 owing to Revenue Canada. There was obviously some unclaimed income as the accountant had missed December in our year end and a bunch of snow money comes in but not that much and it was ridiculous the things they did. We had a truck that we fixed up and painted, then the motor blew so we repaired it, all told we ad $15000 in it in 2 years. The auditor told me the repairs were a capital expense not a one time deduction and had to be depreciated, so instead of changing it to a depreciated charge they just disallowed it, and not just it but all the repairs I had for those 2 years to all my trucks, 5 at the time for about $30000, so that money that went to repairs became unclaimed income! I built my friend a front step and patio with leftover material as a wedding gift, they asked me what the value of it was, I told them around $4500, so they gave me $4500 unclaimed income and charged me $600 GST for it, said I took work away from another contractor, my mistake, I was trying to be honest and told them about when I was questioned about leftover material. in my appeal my accountant pointed out that nowhere in the income tax act does it say you must charge for your work. Appeal started a year ago, haven't heard ****! Just a warning to anybody that might get audited (Hopefully none of you ever do) answer only what they ask honestly and don't offer up anything you don't need to, oh and get an accountant that knows te income tax act inside and out!
2008 Massey Ferguson 5455 w/FEL
2010 Massey Ferguson 1648 HST w/cab and FEL
2011 John Deere 2520 w/62"deck and FEL
2008 John Deere 997 diesel Z-Trak
2001 Kubota KX-41 Excavator
2012 John Deere Gator RSX850i