Taking this step when filing your taxes can help you avoid a gross negligence penalty from the CRA
This week, the Canada Revenue Agency held a media briefing to usher in the beginning of the 2019 tax filing season. But unless you’re certain that you’ve already received all of your tax slips for 2018, you may want to hang on a bit before filing your return.
While waiting for those remaining slips to arrive, take some time this weekend to get organized, making sure you have the necessary receipts to back up all your deductions and credits. Failure to provide proper receipts to the CRA could not only lead to a denied deduction, but could also result in a gross negligence penalty, as an Ontario taxpayer recently found out.
The case, decided last week, involved the child care deduction and illustrates the importance of getting appropriate receipts to back up your claim. The taxpayer has five children, but only her youngest two children lived with her from 2003 to 2007, the tax years under review.