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KPMG Tax Case

kpmg tax fraud cra court

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#21 SamCB

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Posted 22 September 2015 - 08:28 PM

If you go to another province to privately pay for bunion surgery because the wait is too long in your province of residence, can you claim that as a medical expense? Real life file I worked on. The doctor provided a note and a lady claimed a $15,000 two week trip to another province (including hotel, meal rate at the max allowable per day even if she didn't spend that much, etc.) CRA allowed the claim. It's all fuzzier than the government wants it to be.

#22 Mike K.

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Posted 23 September 2015 - 03:55 AM

^In my experience the definitions are much blurrier. The tax code is complex. I know lots of accountants who are "farmers". They fit all the criteria CRA requires for farm status, but they wear suits to work and buy marked gas. Is that a loophole, Tax fraud, or an incentive to get people farming? It's Only fraud if you go to court and lose.
If you start a sole prop as an artist just so you can record a loss every year and write off your supplies while reducing your tax burden, is that a loophole, evasion, or fraud?
In my experience accountants (using experience and judgment) push the limit for their clients. "It never hurts to try" was often heard in the office I used to work in. That doesn't mean they are criminals, it's just part of the game they play against CRA.

Yeah, you've articulated what I couldn't.

Gary's take on the whole situation with the Cooper's makes sense. Good work, Gary.

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