#ICYMI: Rotfleisch & Samulovitch P.C.'s managing partner, David J. Rotfleisch, C.P.A., J.D., comments on the new home tax rebate. #Taxpage #GST #HST #Taxlaw
"If you claim the [GST/HST] new home tax rebate and the CRA says you are not entitled to it, that’s in all likelihood not going to be fraud," says David Rotfleisch, Taxpage's managing partner. Rotfleisch & Samulovitch P.C.'s managing partner, David Rotfleisch, was recently interviewed by Ruby Mezetta of Investment Executive, a top trade publication for financial advisors in Canada, on the new housing rebate and the government's new housing plan. "Certainly, in Ontario, they seem to be focused a lot on the new housing [rebate],” David said while speaking on the new home tax. He said the government's use of the term “fraud” in its housing plan announcement was “designed to create an impact” but that it was inappropriate for describing legitimate disputes between taxpayers and the CRA. When he was asked about what should be considered fraud in the new home tax, Rotfleisch said, "If somebody renovates [a property], sells it, makes a profit, and doesn’t declare the income, of course, that’s fraud,” he further said, “but if somebody claims the [GST/HST] new home tax [rebate] and the CRA says they’re not entitled to it, that’s in all likelihood not going to be fraud." Inadvertent is the opposite of fraudulent; plus, there is no intent to deceive. David advised that taxpayers should seek professional advice to protect against a possible audit. He opined that if a lawyer provides an opinion that a real estate transaction is on the side, a client’s risk is mitigated. “Get a memo in a file; once you have that, there’s almost no chance of [CRA successfully applying] gross negligence penalties, and you’re going to know what the recommended [tax] treatment is [for the real estate transaction],” advised Rotfleisch. To read the entire interview, here's the link: https://lnkd.in/gYwFdEHb Are you facing an audit by the CRA? Our team of experienced tax lawyers is here to help you navigate through it. To stay up-to-date on major tax developments in Canada, follow our social media pages or call 416-367-4222 for a 10-minute consultation on Canadian income tax. Send us an email at info@taxpage.com. Taxpage.com All the tax help you need. Disclaimer: Posts on this page are for educational purposes only and shouldn't be taken as tax or legal advice. For legal advice, please consult your lawyer. #Taxpage #Newhomerebate #HousingCrisis #Realestate #Canada #Taxlaw