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Get Your Tax Refund… If You Still Can. :CRA SOTW

The Canada Revenue Agency has been collecting GST on discretionary
investment or portfolio management services. And they’ve been doing
this pretty much since the inception of the GST.

However one company disagreed with this. Canadian Medical Protective
Association
(CMPA). So much so that they took the CRA to court.

And they won. That’s right.

In 2008 a judgement by the Tax Court of Canada agreed that
discretionary investment or portfolio management services qualify as
being financial services and so are exempt from GST charges.

Naturally the CRA appealed the decision – and they lost again.

On April 16, 2009 the Federal Court of Appeal unanimously confirmed
that the Tax Court had ruled correctly. GST should never have been
charged on this service. That’s eighteen years plus of taxing the
untaxable. Probably north of one billion dollars collected. Money that
the CRA is going to have to refund to over taxed and cash strapped
Canadians. With interest. Right.

But hold on there cowboys and cowgirls, not so fast.

You see, the CRA still has one more trick up their sleeve.

In the past, whenever the CRA has faced similar rulings, they simply
amend the Excise Tax Act. Retroactively. And that amendment always
specifically denies taxpayers the opportunity to file for refunds. To
claim the return of unjustly charged tax. The Canadian government has
done this time and again.

And, no doubt, they will do it again.

Forcing many Canadians to pay tax on a service that should not have
been taxed on at all.

So, if you’re one of the afflicted, someone who has unnecessarily paid
GST for discretionary fund management services – then contact your
investment adviser to address the issue of compensation. Today. So you
can get your tax refund… if you still can.


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Miss a Tax Tale Miss a lot!
Visit the CRA SOTW Library at http://canada.revenue.agency.angelfire.com
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Alan Baggett – Tax Collector’s Bible