Personal Finance

When you file your tax return (from a CRA staff)

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  • Feb 5th, 2017 6:59 pm
Deal Addict
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Feb 16, 2010
1943 posts
31 upvotes
I have a question. How long does it take to process an Adjustment at this time of year?
Newbie
Oct 12, 2008
16 posts
So I've always wondered if CRA uses tools such as Credit Score to decide whether or not to audit. Interested in the OP's thought...Recognizing that Credit Score is a reflection of responsibility, might one with a uniquely low score be more inclined to cheat?
Member
Mar 6, 2010
245 posts
19 upvotes
deep wrote: Sorry, what does this mean? $1.00 in every line, including ones where you have no income? I are confuzed.
I would like to know why the $1 too..

Wouldn't it be lying if I should put $0 and I put in $1?
Newbie
Oct 1, 2008
72 posts
1 upvote
Surrey
audit13 wrote: Do you work in the TC?
seems like the OP was written by someone who works at the TC in the Order of Attachment and/or Selection department
X45 wrote: Hi Trishach,

What happens if I actually didn't realize I forgot to file my T4 from 2007 and just found it today! I've been picked for an audit as well and I really have been honest! I don't want to let the CRA think I am dishonest but have heard bad things....expect the worst! Please advise!
well if they've started reviewing your file already for 2007 then that means they've (most likely the Matching department) picked it up before you did, so you will most likely be charged with penalty and interest for trying to avoid taxes as you are supposed to keep track of all the jobs you've done in a year and then report it (even if the employer doesn't give you a T4 for one reason or another, you are still supposed to atleast 'guesstimate' the amount and put it on L101 for any T4 income you might have made)
jm1 wrote: Because if more people did that, CRA will need to hire more more staff and then you'll complain that your taxes are higher and the gov't should look to cut costs and staff...
Actually this seems like a rare case, usually CRA employees don't sit there and correct returns for taxpayer unless its in CRA's favor.

Some people have the tendency to just send in a blank return with their T4's, and CRA will do that return for you but not give you most of the credits that you would be eligible for, so its in the taxpayer's best interest to file the return themselves and claim all the credits and if you don't know how to file a return just take it to a CRA tax preparer volunteer and they'll do it for you.
GuelphTonight wrote: So I've always wondered if CRA uses tools such as Credit Score to decide whether or not to audit. Interested in the OP's thought...Recognizing that Credit Score is a reflection of responsibility, might one with a uniquely low score be more inclined to cheat?
CRA never looks at your credit score to decide if they want to audit you or not, one of the rare times when CRA will pull your credit report is when you owe them money and they want to see your ability to pay (still credit score is not looked, just the credit report and your credit limits etc)
dealrus wrote: I would like to know why the $1 too..

Wouldn't it be lying if I should put $0 and I put in $1?
I would ignore this suggestion by the OP because it causes more confusing than help for the taxpayer, leave it for the Selection department to pull out their red pen and cross the $0 and put a $1.00 there (wherever it may be needed)



Hopefully that answers most of your questions, just thought I'd help a fellow CRA employee and share my experience and knowledge that I've gained at 8 different departments with the Agency

PS - for all those people suggesting to netfile, there are many cases when you can't netfile (for example - new immigrant, first time disability, deceased, bankruptcy etc) or many people out there who think if they paper file they'll never get audited (not true but it does help your case if you paper file and CRA wants to see some receipts - so rather than them sending you a letter and asking for that, they just call for the return and look at the receipts and you don't even know that your file got looked into)

Just for everyone's info:
53% Net/Efiled in 2008, and 45% paper filed

So Net/Efiling is definitely the preferred method to file but there will always be some people who will paper file so the OP is definitely a handy guide on how to make your return get processed faster & how to make a CRA employee's (who works in those 2 departments) work a lot easier.
Member
Dec 19, 2007
362 posts
7 upvotes
ghostryder wrote: You heard a rumor that has no basis.


http://www.cra-arc.gc.ca/tx/ndvdls/tpcs ... d-eng.html

The selection process for reviewing returns is the same whether the return is filed on paper or electronically.

They don't have the time or personnel to audit everyone, so like any external auditor they evaluate risk and spend their time where the risk is highest.

The average T4 employee may never get audited in their lifetime. Self employed people are higher risk and therefore attract more attention. Anyone who has the potential to be operating in a high cash environment is also higher risk (think servers and people in businesses where tipping is commonplace, restaraunts etc.).

Why do you think some provinces have a tax credit available to renters? Makes it a lot easier to compare the renter's credit to the landlord's tax return.


Certainly not a rumor. When netfile was first introduced the audit rates on netfile returns were sky high.

That has changed now since its more commonplace but when you netfile you are essentially sending them an unsupported return. If your return does not differ from slips that they already have its not an issue. Start adding in anything else they have no knowledge of and the probability of an audit changes accordingly.


Paper returns are great anyway... the more paper they have to physically handle, sort, enter and store the less man power and resources they have to do audits.
Deal Addict
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Feb 1, 2009
4776 posts
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East GTA
Very random question, but what colour is the T1 form? Blue?
Sr. Member
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Aug 22, 2009
589 posts
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Guelph, ON
highvelocity wrote: From my experience, people get pre-assessed / reviewed if they have large claims for certain things (like medical expenses, donations, childcare expenses -- well into the thousands.)

I was reviewed last year, most likely due to very large charitable donations. It was no big deal -- since I used NetFile they just asked me to mail in all of my receipts.
Sr. Member
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Aug 22, 2009
589 posts
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Guelph, ON
Nexxion wrote: Paper returns are great anyway... the more paper they have to physically handle, sort, enter and store the less man power and resources they have to do audits.
I want them to do audits. Dishonest people who are cheating the system are really cheating all honest taxpayers, and if they're audited more then maybe they'll be caught.
Deal Addict
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Nov 25, 2010
1680 posts
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Kanada
First time filing Canadian taxes so I can't use Netfile :confused:
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Jul 31, 2011
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SnoopDop wrote: First time filing Canadian taxes so I can't use Netfile :confused:
dont worry. Use UdoTaxes or studiotax software. Then enter this info on Tax forms available at Canada Post, free.
So no need of calculations. Attach all T4/T5 and other required documents specific to your returns.

Drop them at CRA office like at Young/Finch. Next year on-wards you will receive code. Create CRA user account and manage.

On go to softrontax or others and pay like $25-$50 and file it. Then next year go to your CRA account and delete access to your
account for that tax consultant.
Deal Addict
Nov 14, 2010
1090 posts
354 upvotes
manmanny wrote: dont worry. Use UdoTaxes or studiotax software. Then enter this info on Tax forms available at Canada Post, free.
So no need of calculations. Attach all T4/T5 and other required documents specific to your returns.

Drop them at CRA office like at Young/Finch. Next year on-wards you will receive code. Create CRA user account and manage.

On go to softrontax or others and pay like $25-$50 and file it. Then next year go to your CRA account and delete access to your
account for that tax consultant.

Studio tax lets you print completed forms with 2D barcode. That keeps you from doing excess work, and reduces the errors CRA data entry monkeys can make.

I also recommend signing up for direct deposit. Refunds will appear in your account quicker, and if you qualify for HST/GST cheques they appear in your account automatically instead of having to go to the bank and deposit cheques like a dinosaur.
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Nov 25, 2010
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cheapskatescooner wrote: Studio tax lets you print completed forms with 2D barcode. That keeps you from doing excess work, and reduces the errors CRA data entry monkeys can make.

I also recommend signing up for direct deposit. Refunds will appear in your account quicker, and if you qualify for HST/GST cheques they appear in your account automatically instead of having to go to the bank and deposit cheques like a dinosaur.

I tried StudioTax at first but I found it made incorrect calculations relating to pro-rating the personal tax credits for new residents:
  • If I indicate that I became a resident in Canada during 2011, it correctly prorates the Basic personal amount (line 300 of Schedule 1) but fails to pro-rate the corresponding provincial amount for the Québec return (line 350 of TP1)
  • It doesn't have an option to claim the 90% rule, that is if Canadian income formed at least 90% of worldwide income during the period prior to becoming a Canadian resident, or no income at all was earned during that period, the individual can claim the full amounts of personal tax credit base amounts instead of pro-rating them.
Ufile/ImpôtExpert was able to handle both cases correctly, it adds extra questions about income before becoming a resident to determine eligibility for the 90% rule so it helped me avoid missing out on ~$100 of my expected refund.

EDIT: even TurboTax doesn't handle the 90% rule
Deal Addict
Feb 5, 2010
2764 posts
183 upvotes
VifferFun wrote: I want them to do audits. Dishonest people who are cheating the system are really cheating all honest taxpayers, and if they're audited more then maybe they'll be caught.

Remember, there are multiple groups.

1. Those that are dishonest and cheat the system by filing fraudulent returns etc. This is not fine and should be punished.

2. Those that are honest and use LEGAL tax loopholes/breaks to pay less taxes. This is fine but some people may think otherwise (like the people bashing Mit Romney).
Newbie
Jul 6, 2014
1 posts
Toronto, ON
dgmorr wrote: Last year I completed my taxes on paper. When I was done, I found a whole bunch of other receipts. I was pissed, so I just threw them into the envelope and hoped for the best. CRA sent me a corrected tax return. If CRA will do my taxes for me, why should I bother doing them (correctly) in the first place?
Thanks for doing that, you just increased my wait time for my refund because some CRA agent has to spend an extra day fixing yours...Did you ever hear of the expression....anything worth doing is worth doing right.
Thanks Again Amigo
Wayne Fleury
Newbie
Sep 25, 2004
32 posts
4 upvotes
T.O.
viralman wrote: Thanks for doing that, you just increased my wait time for my refund because some CRA agent has to spend an extra day fixing yours...Did you ever hear of the expression....anything worth doing is worth doing right.
Thanks Again Amigo
Wayne Fleury
Really? Your first posting and you respond to a post that is over 5 years old and you slam someone? I would not worry about your refund, I'm sure based on your ability to observe details you will be audited anyways.
Newbie
Oct 4, 2015
16 posts
HI just want to know i file my 2011 tax on 23 dec 2016 they recieved on dec 28 when should i get my refund i did the paper filing its not showing on my accout thanks
Deal Guru
Jan 19, 2017
10055 posts
6147 upvotes
IhtshamK891114 wrote: HI just want to know i file my 2011 tax on 23 dec 2016 they recieved on dec 28 when should i get my refund i did the paper filing its not showing on my accout thanks
How do you know CRA received on Dec. 28?
Deal Fanatic
Dec 12, 2009
6145 posts
3614 upvotes
Toronto
It is likely you will get a letter soon saying that the right department received it at the end of January and they are looking at it. Or something of the sort.

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