We have entered a new tax crisis, for Canadians. Canadians need to take action now.

I am commenting on two areas, one area is what you can do personally to deal with this assult and the other is an article pasted below about a class action suit against the CRA. It is a great read about CRA tax problems.

Never before have we seen such agressive behavour by the tax department. In Canada there is a need for solutions because there is a tax abuse volcano boiling.

Having a class action lawsuit is a long term solution. Bringing the matter to the attention of the media is for the long term good of the Canadian Taxpayer. In the mean time, we have to ask what needs to be done ‘right now.’ Because we are dealing with a serious assult by CRA on small business in Canada. This means your likelyhood of being in trouble is at an all time high.

In our handling of CRA tax proplems, for clients looking for solutions to their tax problems with CRA. We are experiencing a particularly agressive approach on Canadians by CRA. What we are experiening in many cases is auditors and appeals officers who are not taking the time to properly review details.

CRA auditors are just deynying expenes, ignoring details and bulllying their way to collection of money from the tax payers. When appeals are being filed, the appeals officers are just rubber stamping and standing by the original auditors findings. Things are just being rubber stamped. CRA workers must be under heavy pressure from above. The CRA mandate must be, “collect as much as you can.”

CRA auditors are recognized by two things. Number of files processed and amount of tax money collected. That mandate is in direct conflict of interest in being fair and reasonable.

Because there are less Canadians making profits, that means that CRA must collect more money from somewhere. And right now that somewhere does not seem to matter where and if it is fair, reasonable or accurate, it just does not seem to matter to CRA. What does matter to CRA is get as much as you can in the least amount of time possible.

What happens with most Canadians, it is cheaper and less stressful to just pay the tax, much the same as money paid to the mob for protection. It becomes a cost of doing business in Canada… CRA needs to be paid off as a business expense. Canadians are just folding and paying the “tax and the juice.” This makes sense when it would cost more to fight than what the amount of juice is required to be paid.

So now the only solution to this problem, is to keep audit ready books, with audit reading meaning bookkeeping complete with proper audit trail of source documents. The audit will happen and with perfect records that will be the end of it.

If the bookeeping is not audit ready, then expenses will be denied. The notices of objection will not be properly handled and the notice of objection will fail in many cases.  The objection will be rubber stamped to confirm the original assessment. They the next step will be to file an appeal to the Tax Court of Canada. The appeal will go to the Department of Justice.  At the DOJ will be the first time that the documentation will be properly looked at.

Now that takes us to an interesting situation. There will be a huge amount of taxpayers will fold at this step and will have to pay the juice. For all those who appeal tax court they will be part of an overwhelming number of appeals.

By the sheer volume of appeals it will cause an unmanageable bottle neck of cases at the DOJ. This will cause a new kind of tax problem. “Too many cases to process.” “A large number of case losses in court.” “Negative reaction by the judges to the cases that should not be in tax court.”

What I predict is that when cases go to the Dept of Justice, the DOJ will review them on the bases of which cases they will recommend that CRA drop. CRA knows better than to incur the wrath of the judges over bogus denyals of tax legitimate expense deductions.

Because of this new CRA behaviour, Canadians will have to adapt or pay the juice.

We are recommending that if you need to transition to proper bookkeeping, now is the time. If you are being audited, then you need to be sure that you have proper bookkeeping submitted to the auditor. Failing having a perfect set of books, you will be bumped to the next level of CRA abuse.

If you go through this audit process and have perfect books and records submitted to CRA, that will be the first step of having you removed from the CRA list of who is a good prospect to audit.

After that, with proper audit trail bookkeeping, you will never need to worry about audits again.

As a result of these changes in CRA behaviour, we no longer have any bookkeeping outsource to virtual bookkeepers, we now do it all in house under review of our tax experts.

As is the evolution of the natural species it is adapt or perish. All Canadians need to adapt to this new world order.

The other factor to consider is that having audit ready books is a good idea anyway, if you want to run a succesful business.

Stay tuned, we are close to launching our on line bookkeeping software that will run in any web browser.

Here is the data on the class action suit below. It is a very interesting read about CRA abuse and why you need the services of Tax Audit Solutions.

Dan White
www.tax-audit-solutions.com
________

just rubber stamping notices of ojections

Canadian Minister of National Revenue - Canadian Revenue Agency Complaints - CRA is Abusing, Bullying and Harassing ario
Canada

Canadian Taxpayers Fight Back with a Proposed Landmark CRA Class Action Lawsuit
By: Valerie Hall (Bigg News)
Sunday, Jan 4 2009, 1:05am

The Canada Revenue Agency is out of control and acting like an agency in a fascist dictatorship usurping individual democratic rights. The grounds for the proposed Class Action against the Canadian Minister of National Revenue include fraud, discrimination, harassment, intentional infliction of emotional distress, abuse of process, breach of trust, breach of privacy, negligence, breech of confidential relationship, invasion of privacy, arbitrary targeting of taxpayers and abuse of power.

The Canadian taxpayers allege that the Canadian Minister of National Revenue and the CRA are routinely and arbitrarily targeting individual taxpayers, violating the Canadian Charter of Rights and Freedoms, the Canadian Human Rights Act, the Canadian Bill of Rights, the Statute of Limitations, Contract Law and the Income Tax Act itself including the Taxpayers Bill of Rights.

The CRA takes power over the individual taxpayers life and finances. The Minister of National Revenue continues to ignore the human consequences of the unjust actions of his agency the CRA and removes the individuals power to self govern his life, and live independently in safety, freedom, and protected from unlawful seizure of personal assets.

The grounds for the proposed Class Action against the Canadian Minister of National Revenue include fraud, discrimination, harassment, intentional infliction of emotional distress, abuse of process, breach of trust, breach of privacy, negligence, breech of confidential relationship, invasion of privacy, arbitrary targeting of taxpayers and abuse of power.

The Minister of National Revenue and the Canada Revenue Agency allegedly bully, harass, intimidate, and illegally demand financial information from Canadian taxpayers.The CRA issues illegal wage garnishment orders based on Statutes without proper Court Orders or registered letters.

Demanding the taxpayers financial information ignores Sections 7 and 8 of the Canadian Charter of Rights and Freedoms and effectively cancels the rights to privacy, silence and protection against self-incrimination.

The actions of the Minister of National Revenue cause financial hardship, damage to human dignity and psychological suffering to the members of the Class Action. The intentional arrogance and misconduct of the tax agents in the process of carrying out their duties is unethical and unacceptable. The CRA and their representatives act as if they are not accountable to the law.

Completely ignoring taxpayers rights as well financial resources, the CRA reassess tax returns, threatens to take legal action if the taxpayer does not comply with the demands for private information, payment of arbitrary fines, interest and alleged taxes.

Routinely, the Minister of National Revenue discriminates against targeted individual taxpayers and orders the CRA to issue illegal wage garnishment orders based on Statutes without proper Court Orders or registered letters and improperly illegibly signed by anonymous CRA officials with no identifying information and no witness.

The garnishment is ordered at the highest rate, in order that the income of taxpayers is seized as quickly as possible with blatant disregard for the resulting human suffering.

All taxpayers objections are ignored and swept aside with invalid excuses in a pathetic attempt to terrorize people and hide the gross incompetence of the CRA and its practices of Statute driven extortion.

The purpose of all this ruthless intimidation is to pressure the taxpayer to enter into a contract with the Minister of Revenue to pay the alleged amount demanded.

The handwriting is illegible on the garnishment orders and the CRA officials name and title are not printed on the orders. For this reason they are not a legal document and are therefore invalid.

The Canadian Minister of National Revenue by demanding the taxpayers financial information ignores Sections 7 and 8 of the Canadian Charter of Rights and Freedoms and effectively cancels the rights to privacy, silence and protection against self-incrimination.

According to Kim Bolan as reported in the Vancouver Sun on July 21, 2008, - B.C. Hells Angels, associates, wives and girlfriends- got the CRA to withdraw demands for detailed financial information about their earnings and assets, including any - hidden - outside the country because it violated the Income Tax Act and the Charter of Rights and Freedoms. In the statement of claim filed by Vancouver lawyer David Martin, Brian Airth as well as others linked to Hells Angels wanted a declaration that the CRA was guilty of illegal conduct by targeting the plaintiffs through an initiative variously known as - Project MOGAL, - or the - Hells Angel Project - HA - . The CRA gave private financial information to third parties, including the police. The CRA withdrew the letters of requirement in a precedent setting - out-of-court - agreement made on the same date as the Federal Court challenge was to be heard last spring . The result was that the Airth case was
withdrawn.

The Canada Revenue Agency is out of control and acting like an agency in a fascist dictatorship usurping individual democratic rights.

If you are interested in more information or would like to join the proposed Canadian CRA Class Action Lawsuit, refer to the references below:

mailto:classactioncra@gmail.com

http://canada.com/vancouversun/news/archives/search_resu …

http://communities.canada.com/vancouversun/blogs/realsco …

http://74.125.95.132/search?q=cache:jTzWk38KRaEJ:www.nat …

http://www.canada.com/vancouversun/news/business/story.html?id=d85dff61-df9d-48ea-9f85-613e0e826d19&p=2

http://groups.google.fr/group/man.general/browse_thread/thread/d12c270af0e591f5#

http://www.canada.com/vancouversun/columnists/story.html?id=c0b128a4-b7f5-4461-b651-b1180c22a34f&p=2

Additional Information:
Contact: Valerie Hall
mailto:classactioncra@gmail.com