We Clean up Your Tax Mess Fast! for Less!

877-982-9767
  • Home
  • About Us
  • Our Services
  • Testimonial
  • FAQ
  • Service Costs
  • Contact
Help Me Now!
TaxSOS.ca Search #

Major Tax Problems & Solutions

_______________
  • Tax Representation
  • CRA Tax Audit
  • Unfiled Taxes/Late Taxes
  • VDP-Tax Amnesty
  • Tax Payment Plan
  • Taxpayer Relief
  • Income Garnishment
  • Tax Appeal
  • Penalties & Interests
  • Tax Owing
  • Bank Levy
  • Payroll Tax Arrears
  • Tax Lien
  • Demand to File Notice
  • Tax Problems
  • Tax Solutions
_______________

Tax Horror Stories in the Media

Tax Horror Stories You Think is Impossible

Date: Sat. Feb. 5 2011 6:56 PM ET

Eli Humby is a dyed-in-the-wool Newfoundlander who started his own logging business in the early 1980s in Benton, outside Gander. Hard-working and proud, Humby isn’t one to back down from a fight. So when the Canada Revenue Agency audited Humby’s businesses in 2003, he rejected its findings.

But Humby had no idea how far the tax department would go to assert its claims. In 2005, the Newfoundland Sheriff’s Office and the RCMP, acting on behalf of the CRA, swooped in on Humby’s businesses — and seized almost all of his companies’ assets.

“They took about $1.2 million worth of assets from me. They took (the jobs of) 12 full-time employees, professional employees, put them all out the door,” recalled Humby.

The CRA effectively closed Humby’s businesses and seized his building and heavy machinery. But Humby claimed that he was never adequately notified of the impending seizure and even more importantly, Humby insisted that the CRA was wrong in its assessment of how he paid his employees.

Humby acknowledged that his logging operation, Humby Enterprises, was in arrears to the CRA due to financial distress. But the CRA audit alleged that Humby had transferred liabilities from Humby Enterprises to his two other companies, Central Springs and A& E. The tax auditors claimed that those two companies owed about $60,000, plus interest and penalties, and that triggered the seizure of the companies’ assets.

Humby’s accountant, Don Farrell, believed the CRA’s rationale was misguided. “It didn’t make sense. And we appealed it on that basis — that it didn’t make sense — and of course, the appeals were rejected,” Farrell said.

Even if Humby’s tax appeals had been accepted, it was too late to reclaim his companies’ lost assets. As he watched his life’s work disintegrate, the personal impact on Humby was devastating.

“(The CRA) destroyed (my life) completely. Completely. My life, I don’t want to say it on national TV but I don’t really care about it much anymore,” Humby said.

Nevertheless, Humby insisted on fighting his case. After the CRA seized his companies’ assets, Humby turned to his lawyer, Robert Anstey.

“They sent in a sledge hammer to kill a fly. Basically, the enforcement procedures that they took were totally drastic. Why would you go in and seize assets worth between one and two million dollars you know, to obtain $60,000?” said Anstey.

When Hubby’s appeals to the CRA were rejected, he followed protocol and took his fight to Tax Court.

And in October 2010, after a seven-year battle, a federal Tax Court judge found that the CRA’s “case was baseless” and that Humby’s companies had followed correct accounting procedures.

As part of his judgment, Justice Patrick Boyle wrote that the CRA’s seizure of Humby’s companies’ assets “appears to be a case of Collections’ actions gone awry.” The judge also called the actions of CRA Collections “unsuccessful, unauthorized and inappropriate.”

Scott Simms, the Member of Parliament for Humby’s riding of Bonavista-Gander-Grand Falls-Windsor was so concerned by the way his constituent was treated by the CRA that he added his support to Humby’s cause.

“If you only knew how much power that unelected people have in this country, you’d be scared,” said Simms.

Vindicated by the law and with the support of those around him, Humby is nevertheless still waiting to reclaim what he’s lost. But he can’t turn to the CRA or even to the recently instituted federal Taxpayers’ Ombudsman for recompense.

Paul Dub?, who was appointed as the Taxpayers’ Ombudsman three years ago, cited privacy rights for not being able to talk to W5 about Humby’s case. But Dub? did admit that the CRA makes “a lot of Canadians feel like it is a David and Goliath scenario”.

Dub? told W5 that his office has some power to effect change but is limited by what it can tell the CRA to do.

“We rely on moral suasion. We try and negotiate, we try to mediate,” Dub? said.

So, Humby is going to take his case to the Federal Court in a last attempt to get back what he claims is rightfully his. But that will provide no emotional relief as he
continues to live with his tax nightmare.

“It’s not a torment, it’s a torture. I am sure there’s a description of torture and different kinds. And CRA is nothing short of illegally  torturing people.”

(Note: This story is an excerpt from http://www.ctv.ca/CTVNews/WFive/20110204/w5-taxman-horrror-stories110205/ by Chad Derrick, W5 Associate Producer)

So what do you think of the story? You think this is Canada. Nothing like that should happen. It is happening. That is why the tax court is always busy. If CRA has been doing a fair job. There should be much fewer cases in the court. The bottom line is people won?t go to court to fight with government agency unless they are certain that they are right and CRA is wrong.

If you have a similar experience and similar feeling, give us a call, we will help you to fight back.  You deserve fair treatment as a hardworking taxpayer. Call us today at (877) 982-9767 or (416)623-9234 or complete the Contact Form! Let us find out what we can do to bring back the justice you are entitled to.

 

 

 

 

 

 

 

 

 

 

 

    Contact Tax SOS for Tax Help

    CONTACT US NOW!

    • >>>Tollfree:         877-982-9767 (24/7 live agents)
    • >>> Phone:           416-623-9234 (24/7 live agents)
    • >>>Email:                              Help@TaxSOS.ca
    • >>>Office: 60 Green Ln,Unit 12A,Thornhill, ON, L3T 7P5
    • >>>Hours:                  10:00am to 6:00pm Mon-Fri

      __________________________________

      Tax Info. & Articles Archive

      __________________________________
    • Important Due Dates for Business & Personal Taxes
    • Revenue Enforcement Agent
    • Tax Pay Enforcement Process
    • Article on Tax Audit
    • Typical Tax Accountants Can't Help with Your Tax Problem
    • How CRA Verify Your Tax Returns
    • Unfiled Tax Crime & Tax Alert
    • News Release, Tax Warning
    • Be Aware of Those Tax Leads Centers
    • Tax Alert - CRA Warning
    • Tax Horror Stories - W5
    • Taxpayer Bill of Rights
    • Tax Resources, Myths, and Information
    • __________________________________
    • Home |
    • About Tax SOS |
    • Tax Accountants Can?t Help with Your Tax Problems |
    • Article on Tax Audit |
    • Bank Levy |
    • Be Aware of Those Tax Leads Centers |
    • Contact Tax SOS for Tax Help |
    • Costs of Services |
    • Demand to File Notice |
    • FAQ: Common Tax Questions |
    • How CRA Verify Your Tax Returns |
    • Important Due Dates for Business & Personal Tax |
    • Income Garnishment |
    • News Release, Tax Warning |
    • Payroll Tax Arrears |
    • Penalties & Interests |
    • Tax Resources, Myths, and Information |
    • Unfiled Tax Crime & Tax Alert for False Claim |
    • Tax Alert: False Claim & Offshore Account |
    • Tax Appeal |
    • Tax Audit |
    • Tax Horror Stories in the Media |
    • Tax Lien |
    • Tax Payer Relief |
    • Tax Payment Plan |
    • Tax Problems |
    • Tax Problems: Tax owing |
    • Tax Representation |
    • Tax Solutions |
    • Tax Testimonial |
    • Taxpayer Bill of Rights |
    • Unfiled Taxes |
    • Voluntary Disclosure Program (VDP) |
    • Why Us – Service Quality |
    • Blog

    Social Link »

            

    At Tax SOS

    We Clean up Your Tax Mess Fast! for Less!

    Privacy & Security

    Contact Tax SOS for Immediate Tax Help!

    Location: 60 Green Lane, Thornhill, ON, L3T 7P5
    Email: Help@TaxSOS.ca
    Phone: 877-982-9767 or 416-623-9234

    • © TAX SOS. All rights reserved.
    • Valid XHTML & CSS
    • Home
    • About Us
    • Contact Us
    • FAQ
    • Home |
    • About Tax SOS |
    • Tax Accountants Can?t Help with Your Tax Problems |
    • Article on Tax Audit |
    • Bank Levy |
    • Be Aware of Those Tax Leads Centers |
    • Contact Tax SOS for Tax Help |
    • Costs of Services |
    • Demand to File Notice |
    • FAQ: Common Tax Questions |
    • How CRA Verify Your Tax Returns |
    • Important Due Dates for Business & Personal Tax |
    • Income Garnishment |
    • News Release, Tax Warning |
    • Payroll Tax Arrears |
    • Penalties & Interests |
    • Tax Resources, Myths, and Information |
    • Unfiled Tax Crime & Tax Alert for False Claim |
    • Tax Alert: False Claim & Offshore Account |
    • Tax Appeal |
    • Tax Audit |
    • Tax Horror Stories in the Media |
    • Tax Lien |
    • Tax Payer Relief |
    • Tax Payment Plan |
    • Tax Problems |
    • Tax Problems: Tax owing |
    • Tax Representation |
    • Tax Solutions |
    • Tax Testimonial |
    • Taxpayer Bill of Rights |
    • Unfiled Taxes |
    • Voluntary Disclosure Program (VDP) |
    • Why Us – Service Quality |
    • Blog