An Edmonton senior, Bruce Currie, claims he has been the victim of fraud involving the Canada Revenue Agency (CRA) as he wrestles with the fallout from what he says is the theft of his tax rebate. Currie, who hired a tax consultant to assist him with his taxes two years ago, says he was advised to apply for the disability tax credit. After he successfully received approval from the CRA, he discovered $14,000 of his refund had been directly deposited to an account he did not recognize. "I worked hard for this money — this is not a gift from CRA," he lamented, emphasizing the distress caused by the theft.
After noticing the unauthorized deposit, Currie immediately reported the incident to both the police and the CRA, only to find the issue had not been resolved. Just days later, he reported another $31,000 was similarly diverted. "The CRA told me the money was deposited to the account of record from when the assessments were completed," he explained. He feels the CRA is not doing enough to protect his financial interests.
Multiplying his frustrations, Currie's Member of Parliament, Heather McPherson of Edmonton Strathcona, acknowledged how frequently her office deals with CRA concerns and emphasized the serious nature of his situation, saying, "the implication on this are quite severe." Meanwhile, the Edmonton Police Service confirmed they are investigating the matter, though no charges have yet been laid.
Adding to the mix of CRA-related issues, Conservative Leader Pierre Poilievre has criticized the government’s proposed capital gains tax increase, arguing it's fundamentally unfair and threatens Canada's economy. According to him, this tax hike would make Canada’s capital gains tax one of the highest among developed countries. Poilievre emphasized, "With this tax hike, businesses, jobs, and money will pour out of our country at an even faster rate."
A report from the C.D. Howe Institute lays out the potential fallout from the increase, predicting the move could lead to over 400,000 job losses and shrink the nation’s GDP by approximately $90 billion. This proposal, billed as targeting the rich, could adversely affect individuals earning much lower incomes, with 10 percent of those impacted earning as little as $18,000 annually.
The CRA has been seen as potentially overstepping its bounds by enforcing the proposed capital gains tax hike without the necessary legislative approval. Critics highlight the fact the tax hike requires new legislation to become effective, and the government has not yet put this before Parliament. This concern calls the legality of the CRA's actions, pushing forward on tax increases, which they may not be lawfully authorized to implement, echoing the historical refrain of "No taxation without representation."
Yet, not all tax stories picture dire economic consequences. Marlene Enns, another Canadian taxpayer, recently attained a legal victory against the CRA concerning her claim on her late husband’s retirement savings. Marlene battled through years of legal challenges to secure her right to keep over $100,000 from her husband’s RRSP fund, arguing she could not be held responsible for his tax debts after his death.
The court ruled her marriage effectively ended with her husband's passing, distinguishing her status and preventing the CRA from relying on Section 160 to claim funds intended as inheritance. This ruling could have significant ramifications for surviving spouses who are often vulnerable to inheriting tax liabilities after losing family members.
According to legal experts, the Enns ruling clarifies important questions surrounding the CRA’s ability to claim taxes owed by the deceased from their surviving spouses or common-law partners. One lawyer specializing in tax law, Lori Bokenfohr, remarked, "It's good news for spouses of deceased people who owe taxes, for the taxpayer community and for Canadians." This case highlights the often convoluted nature of tax laws and the significant weight they can impose on families faced with loss, grieving not only their loved ones but also the financial burdens left behind.
With multiple instances of disputes and controversies surrounding the CRA, from allegations of fraud to legislative overreach and enlightened rulings favoring taxpayers, Canadians are left grappling with the agency’s compelling role within their financial lives. Whether it’s through battling fraudulent practices, the burdens of increased taxes, or fighting for rightful inheritances, these stories lay bare the often complex and urgent nature of tax issues affecting citizens.