A common mistake after someone passes away is assuming the tax work ends with the final personal tax return. In Canada, that return is usually called the Final T1. It reports the person’s income up to the date of death. But if the estate keeps holding assets after death, the story may not be finished. Bank accounts may keep earning interest. Investment accounts may receive dividends. Shares may be sold. A rental property may keep collecting rent. That income often belongs to

Finding an old tax mistake often triggers two risky thoughts. The first is, “The amount is small, so CRA may never find it.” The second is, “It is already late, so I might as well wait and see.” Both can make the problem worse. Canada Revenue Agency’s Voluntary Disclosures Program, usually called VDP, gives taxpayers a way to come forward and correct past errors before the issue turns into an audit or investigation. It does not erase the tax that should have been paid. When t

Many self-employed individuals report Business Income and Business Expenses each year using Form T2125, Statement of Business or Professional Activities, but may never have seen a CRA letter reviewing their self-employment activities. Below is a real CRA review letter with the taxpayer’s personal information removed. The CRA requested additional information and supporting documents relating to the taxpayer’s self-employment activities. In this particular review, the CRA focus