Deprecated: mysql_connect(): The mysql extension is deprecated and will be removed in the future: use mysqli or PDO instead in /home/a26f9f83/public_html/articles/includes/config.php on line 159
The Tax Man Cometh... To Search > NetSparsh - Viral Content you Love & Share

The Tax Man Cometh... To Search

You're at your office, or home, and the doorbell rings ? it's the Canada Revenue Agency ("CRA").

The first thing to do is find out why they've come. If it is an "inspection, audit or examination" of your books and records under §231.1 Income Tax Act ("ITA") then they have a right to be at your place of business, during business hours, to do these things.

Just collect a copy of the business card of the officer and ask them to write what authority under the ITA they are relying on. Other than that cooperate with them, and produce your books and records.

If they are there to serve you with a "Requirement to Produce Information or Documents" under §231.2 then, they'll have an RPID, in writing, to give to you. Subject to certain technical prerequisites this is something CRA is empowered to do.

Just collect a copy of the business card of the officer, as well as, a copy of the RPID and ask them to write on the back of their business card; whether it is you, or someone else, who is the subject of the RPID.

If it someone else, ensure that their name is listed on the front of the RPID. CRA must give you a "reasonable time" to produce the information or documents and use this time to consult with your accountant or lawyer. Normally, however, you'll be required to produce the materials required.

Once again, be polite and listen to what is said. When the officer's leave write everything you can remember down.

But, if they are at your house, or present you with a search warrant then this is something else entirely, and you need to know your rights.

There is no substitute for prompt legal advice, but the following suggests may assist you, when and if this ever happens to you:

1. Ask to see the search warrant before you let anyone in. If you are at home, step outside and close the door behind you while you examine the Search Warrant ("SW") papers.

The searchers are required to show you a copy of the warrant or tell you what is in it before executing it. Examine the paperwork very carefully. The officers are required to leave you a copy of the SW when they leave.

SWs can be based on incorrect, incomplete or inadequate grounds and searches can be carried out as a "fishing" expedition by CRA; if any of those prove to be true then you do you have legal rights, but that is something that your lawyer will have to handle for you ? in the future ? while the search(es) are on-going your only responsibilities are to be observant, record everything that occurs, be polite and avoid a confrontation with the officers.

2. Ask the person in possession of the search warrant to identify themselves and all of those with him (or her) and to indicate whether those persons are authorized to aid in the execution of the warrant.

See if the persons who are present are listed on, or authorized by, the warrant to conduct the searches. Collect business cards from each of the searchers, and if someone doesn't have a card then get a card from another searcher and have them write their information on the back of that card.

3. Request time to review the warrant and to obtain legal advice with respect to your appropriate course of conduct.

4. Read the warrant carefully to determine:

- the premises covered

- the specific documents or objects it covers

- the alleged offence(s) which are the subject of the warrant(s)

- Read the date and times that the warrant authorizes search.

While you do these things the officers will see that nothing is removed from the premises, either by you or by someone else; but as long as they can ensure this to be the case, they should give you the time to review and satisfy yourself on the terms of the SW.

5. At the same time that the warrant is being reviewed, instruct someone to make the following calls:

- to your legal counsel; say something like "Officer, I have nothing to say until I speak with my lawyer." You have the right to be silent, use it.

NB: if your lawyer's office, or home, is searched they should claim your solicitor-client privilege and follow the procedures set forth by their provincial Law Society. Because you are not the lawyer's only client the lawyer should ask to have their Law Society send a representative out to attend at the search site and ensure that your lawyer's other client's rights and privileges are not violated.

- to your accountant

- other individuals named in the warrant whose offices or homes are to be searched. They should be told not to remove any books or records before the SW is executed on their premises.

6. If told that you must sit down and not use the phone, ask: "Am I under arrest?" If the answer is "No" or "Not yet" then no one has any right to touch you, or to hinder your use of the telephone.

If an officer does touch you, then ask again: "Am I under arrest?" If the answer is no, then say: "In that case, please take your hand off me." If this happens call your lawyer immediately, and seek their advice.

Be polite and if you make an objection make it calmly and ensure that you record all of the details carefully.

It is possible that you may be subjected to "administrative detention," which is practically like being arrested, but it will stop when the search is over.

7. Do not "agree" that the search can be expanded beyond the limits described in the warrant. If you are asked to "agree" say very clearly that you don't agree and ask the officer in charge to witness your refusal.

This may be important if the officers make over-seizures; that is, take things not authorized by the warrant (and chances are that they will). Some such extra seizures may be authorized by law, but keep detailed notes and discuss this with your lawyer.

8. Do not answer any substantive questions; that is, don't make any statements or allow yourself to be questioned without your lawyer being present - use common sense here.

If you insist on ignoring your right to remain silent, then when you do say something be honest and tell the truth.

9. The CRA will be accompanied by an RCMP officer, ask this officer for a business card as well. This officer is present to keep the peace and not to search. If the RCMP does appear to be searching or making seizures then tell your lawyer.

10. Keep track of the paperwork that is being seized; see that each item (as far as possible) is authorized for seizure by the search warrant and that the officers don't engage in over-seizures. If they do take things not authorized by the warrant, then record the particulars and tell your lawyer ? do not argue with the officers.

11. In the unlikely event that the searching officers damage your property then politely object to the officer in charge, giving any pertinent details and ask them to stop. Be sure to write down as much information as possible.

12. DO NOT attempt to impede, physically, verbally or otherwise, any person from executing a search warrant. To do so may be an offence.

If you believe that the warrant doesn't authorize a particular seizure, then ask the officers to wait while you call your lawyer. Have your lawyer discuss any technicalities with the CRA officers.

13. If you have any documents over which solicitor-client privilege may exist, identify the documents and their location and indicate to the search officer that the documents are subject to solicitor-client privilege and that you require that the appropriate procedures be followed to protect the privilege.

This includes sealing the documents into a separate box, listing the contents (in general terms) and having the box taken to the Sheriff. CRA will ask you to give them custody of these materials, but it is better to have them delivered to an independent third party.

14. Keep an accurate log (or copy) of all documents seized and have the officer in charge confirm that your copy is accurate - do this before the officers leave the premises.

If the officer(s) refuse then obtain from them a written undertaking tell you when you will get an inventory, and ask for both the paper and the electronic versions, to make reviewing the data easier on your lawyer.

15. If CRA takes a copy of your computer hard drive(s), or takes copies of your computer disks, CDs or DVDs then request a copy of all of the seized originals before they leave the premises.

If possible observe each disk being copied, and have the officer sign the copy, numbering each disk in the series (i.e., 1 of 5, etc.)

16. The CRA officer in charge, or team leader, will have sworn a document called an 'Information to Obtain a Search Warrant' ("ITO") which was presented before a Justice who must be satisfied that the officer has reasonable and probable grounds that there has been an offence committed and that a search of the premises will disclosure evidence relating to the commission of that, or those, offence(s).

17. Once the search has been completed the officer in charge, or the searchers having, must file a "Report to a Justice" with the court, explaining what they did with the SW and listing what they took.

Examine the attached scheduled must list all that is seized, if you find any discrepancies between what is listed there and with what you recorded as seized tell your lawyer immediately.

18. Have your lawyer request the right to attend at the hearing before the Justice, when the Report to a Justice is presented.

19. Have your lawyer request a copy of the Witness List(s), for all of the officers who attended the search, as well as, a copy of their statements, any affidavits sworn in support of the Report to a Justice, and any Will Say Statements, as they become available.

If you are charged, your lawyer will be entitled to these documents, but do what you can to obtain copies as soon as possible, because any problems should be raised at the first possible opportunity by your lawyer.

20. Get your lawyer to obtain from CRA a copy of the ITO relating to the search warrant. They will also be available from the Court Office where it is a public document and can be obtained for the cost of photocopying ? this ITO will prove to be valuable to your defence.

If you have not been charged with an offence under the Income Tax Act ("ITO") or Criminal Code ("CC") then CRA will require a Retention Order to keep your seized materials.

21. The Income Tax Act and Criminal Code each provide a code of rules which CRA officers must comply with in preparing ITO's and executing warrants. If they have failed to do so or otherwise fail to comply with the law, then your lawyer may be able to pursue remedies on your behalf.

Just like you, CRA officers, are required to follow the law.

The more accurate and complete your search notes are, the more assistance you will be to your lawyer in ensuring that all of your legal rights have been protected.

Staff Writer
For Tax Evasion Resources
http://www.taxevasionresources.com

In The News:

This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news

Forbes

6 Whopping Tax Mistakes That Can Ruin Your Retirement
Forbes
Sadly, tax planning doesn't end when you retire. The Internal Revenue Service (IRS) still wants its share of your retirement earnings. While many live on less in retirement, others may end up spending more. That could lead to higher tax bills ...
3 legit ways to shield your kids from tax burdensYahoo Finance

all 16 news articles »

Payson Roundup

Proposition 126: Taxes on Services
Payson Roundup
Proponents contend there is a real danger that Arizona politicians will try to raise more revenue by imposing taxes on services ranging from haircuts, manicures and car repairs, to child care and medical care and real estate transactions. They warn ...


USA TODAY

Bank of America: Earnings rise on higher interest rates, lower taxes
USA TODAY
NEW YORK – Bank of America said Monday that its third-quarter profits rose by 32 percent from a year ago, as higher interest rates allowed BofA to charge more for loans, and lower corporate tax rates helped it save hundreds of millions on taxes.
Higher Interest Rates, Lower Taxes Boost BofA ProfitsWFAE
Bank of America Profit Jumps 32% on Tax Cuts, Higher Interest RatesTheStreet.com

all 123 news articles »

Vanity Fair

Jared Kushner's Guide to Gettin' Rich: Pay No Federal Income Taxes
Vanity Fair
On the heels of an explosive story detailing years of tax avoidance, tax dodging, and apparent outright tax fraud by his father-in-law, over the weekend it was Jared Kushner's turn to have his payments to the I.R.S.—or lack thereof!— scrutinized by ...
In Trump and Kushner's world, other people pay taxesCNN
Jared Kushner reportedly paid almost no federal income taxes, and CBS News didn't ask Trump about itSalon

all 19 news articles »

CNBC

How you can give away up to $11 million and slash your taxes
CNBC
In 2017, the IRS received 12,711 estate tax returns. Of these, 4,191 addressed gross estates of more than $10 million. The Tax Cuts and Jobs Act raised the estate tax exemption to $11.18 million per individual from 2018 to 2025, roughly double the ...

and more »

WWNY TV 7

Ogdensburg's Proposed Budget Calls For Small Hike In Taxes
WWNY TV 7
The tax hike under the proposed budget would be less than 1 percent. There are almost no job cuts. The city remains on the state's watch list for fiscally stressed municipalities. “We have to right the ship. We have to be fiscally responsible. And that ...


MLive.com

Sushi restaurant owners get probation for pocketing sales taxes
MLive.com
The owners of a West Bloomfield restaurant were sentenced last week to probation and ordered to pay nearly $1 million in restitution for pocketing sales taxes from customers. Sushi Samurai owners Dong Chang and Christina Chang pleaded guilty to ...

and more »

Bloomberg

Top 3% of US Taxpayers Paid Majority of Income Taxes in 2016
Bloomberg
Individual income taxes are the federal government's single biggest revenue source. In fiscal year 2018, which ended Sept. 30, the individual income tax is expected to bring in roughly $1.7 trillion, or about half of all federal revenues, according to ...

and more »

Motley Fool

A Foolish Take: Here's Why Your Social Security Taxes Might Go Up in 2019
Motley Fool
The money for those benefits has to come from somewhere, and most of it gets taken out of paychecks in the form of Social Security payroll taxes. Most workers pay 6.2% of their pay in taxes to Social Security, and their employers pay a matching 6.2 ...

and more »

KATV

Monday marks deadline for property taxes
KATV
The vast majority of the property taxes you pay help fund public schools, but city and county government, roads, the jail, police and fire pensions and libraries also benefit. Pulaski County has eight different locations where you can pay in person ...
Today's the deadline for Columbia County taxesMagnoliareporter

all 6 news articles »
Google News

Need a Copy of Your Tax Return Information?

Taxpayers have two easy and convenient options for getting copies... Read More

Surprising Truths About Tax Preparers

Choosing the right tax preparer for your business is a... Read More

IRS Certifies 2006 Toyota Hybrid for Clean Fuel Deduction

The Internal Revenue Service has certified the 2006 Toyota Highlander... Read More

Save Money on Taxes - Let Uncle Sam Pay for Your Fun!

"Deducting Meals and Entertainment"O.K. You've been working really hard on... Read More

Business Tax Deductions

As we enter mid-March, taxpayers begin to become very interested... Read More

Get Uncle Sam To Pay $36,000 For Your Childs Education!

Let's assume that you would like to begin saving for... Read More

To Tax or Not to Tax - This is the Question

To tax or not to tax - this question could... Read More

Fraudulent Tax Shelters ? KMPG Goes Down Hard

In the largest criminal tax case ever filed, KMPG has... Read More

Hurricane Katrina ? How To Use Your Business Loss To Get A Refund on 2004 Taxes

With the massive losses caused by Katrina, the economy of... Read More

Tax Time Tune Up

Excerpted from the new book, "How to Do Space Age... Read More

Anticipating Your IRS Refund Can Cost You Plenty

While accountants are reaching for aspirin, millions of Americans are... Read More

Euro Tax Haven Threat

Media reporting of a new EU savings tax directive has... Read More

Save Money on Taxes - Double Your Income Now With Tax Saving Tips on Deductions

Adding Your First Additional Stream of IncomeMost new wealth builders... Read More

Rearrange Your Affairs For Maximum Tax Savings

One way to maximize your business profits is by reducing... Read More

Tax Secrets - How Drew Miles Helped Me

How about a Tax Tip?As we all know Taxes are... Read More

Tax Deduction for Alimony Payments? - Yes!

Over 50% of marriages end in divorce in the United... Read More

10 Tax Tips to Reduce Costs and Increase Income

No one likes paying tax. Everyone understands that tax is... Read More

Reducing Taxes Through Dividend-Salary Mix Calculations

Should I take wages or dividends from my privately owned... Read More

Corporations Failing To Claim AMT Exemption Overpay Taxes By $11,000

Does your incorporated business pay alternative minimum tax ["AMT]? If... Read More

Slash Tax when Buying a Business

When buying a business, how the "purchase price" is made... Read More

Insider Guides to IRS Audits!

Ever wish that, as a business owner, you knew exactly... Read More

Identity Theft ? Impacting Your Taxes?

If your identity is stolen, your finances can quickly become... Read More

How To Get An Extension To File Your Business Tax Returns

Yes, the tax season is upon with the first filing... Read More

I Havent Filed a Tax Return with IRS in Years, What Do I Do?

In elementary school, kids come up with creative excuses why... Read More

Need an Offshore Sales Office in a Tax Free Environment?

The 100 year old investment-banking firm of... Read More