Description: With tax season in full swing – despite the strike in effect at the Canada Revenue Agency (CRA) – experts agree that it is important that Canadians know how living together can impact your taxation status. With societal trends indicating that common-law relationships are especially prevalent among those 20-24 years old, many may be unaware that living together for one year drops the two of you into a household status. This could mean that you lose some government benefits, while you gain others. One big problem is that if you continue to file as a single person after the one-year mark, you are essentially filing a fraudulent return. That may cause a CRA reassessment for both partners and a tax bill you probably have not budgeted for.
Date: April 20, 2023
Source: thestar.com
Discussion points:
1) Were you aware of the one-year rule regarding common-law relationships?
2) How do you think the CRA strike may impact the tax preparation process this year?
3) Chapter one of Wiley’s Auditing: A Practical Approach discusses several different types of audits in section 1.3. When the CRA comes calling on a taxpayer, what type of audit is being performed?
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