January 5, 2024
CRA Now Implementing New Reporting Requirements For RRSPs & RRIFS - Documentation & Substantiation Growing
You will see from the CRA and all tax authorities globally, a massive spike in the documentation and substantiation requirements for personal taxes.
The reasons are pretty simple :
- Governments around the world were already bankrupt before the pandemic with very large annual deficits and massive levels of debt
- All levels of taxation before the pandemic are at maximum levels (can't raise taxes anymore)
- Governments are now going to go after every nickle and dime from the average tax payer because they are easy targets (the rich will use expensive lawyers)
- They will start to enforce tax legislation on items that that they have historically not gone after
- Taxable benefits like : Company provided phones, cars, etc. are low hanging fruit that new auditors can cut their teeth on
Effective this tax year financial institutions that offer RRSP and RRIF products will be forced to increase their documentation and substantiation requirements.
The banks are now forced to do things that they never have had to do in the 50 year history of the product.
The why is the above, and expect a tsunami of new documentation & substantiation requirements to be forced upon all stakeholders that the government feels appropriate.
ARTICLE SOURCE : https://www.investmentexecutive.com/newspaper_/bui...