Simon Zhong

Think positively about your relationship with the Canada Revenue Agency

The Canada Revenue Agency (CRA) has long been painted as the taxman, a money grabber. Many people have been trying to shun and avoid the CRA. In fact, the CRA does more than just collect taxes. It also delivers social benefits, the free money everybody is happy to receive. It can become an ally that you can tap into a variety of lucrative benefits and credits.

Don't be afraid of the CRA

Due to our overly generous source deduction system, many Canadians overpay their taxes. You don’t recover your overpaid taxes unless you ask the CRA for it. Some refundable tax credits, such as Canada child tax benefit (CCTB), working income tax benefit (WITB), and GST/HST credit are delivered by the CRA. The CRA also determines your investment “room” to make tax-preferred investments, such as tax free savings accounts (TFSA) or registered retirement savings account (RRSP). Many provincial credits, such as Ontario trillium benefits, are based on the information from the CRA. Now, you get my point, the CRA can be your friend sometimes.

It may be easier to let someone else to deal with the CRA on your behalf

You may sometimes feel frustrated in dealing with the CRA because it looks you are talking in different languages. If this is the case, just remember you can always authorize a representative to deal with the CRA on your behalf. It will make life much easier. Your accountant or tax preparer is a good candidate of your representative. We also provide this type of services.


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