CRA warns Canadians not to be fooled by the working income tax benefit tax schemeBy The IJ Staff | June 25 2018 11:30AM
The Canada Revenue Agency (CRA) is warning Canadians about schemes where promoters – who are typically tax representatives or tax preparers – claim they can get a tax refund for participants from the working income tax benefit (WITB) even if they do not have work income.
“The working income tax benefit is a refundable tax credit intended to give tax relief for eligible low-income individuals and families who are currently in the workforce,” says the CRA on its website. “It also encourages Canadians to enter the workforce. You can only claim the WITB if you are earning income from working in Canada.”
The CRA warns there may be serious consequences for participating in these schemes, or promoting them, including penalties, court fines, and even jail time.
“All taxpayers, including those who pay tax experts to prepare their taxes, are legally responsible for the accuracy of their tax returns,” the CRA underlined.