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ASSESSMENTS

It is common knowledge that CRA, in general, send out notional assessments larger than they anticipate the tax amount owing is likely to be. This is known as “TO ENSURE COMPLIANCE”. Hence the website that we have started to develop: www.toensurecompliance.ca.

These notable assessments are one thing, but final assessments are another and you cannot make these go away without an incredible amount of effort and paperwork. CRA in Belleville have been amazingly busy bringing out new assessments in an effort to make us collapse under the weight of work and stress. Currently there are well over a dozen assessments which we are in the process of appealing and although we will win in the end, CRA Belleville are determined to make our lives as difficult as possible. Not only that but they are now at the stage where they are creating assessments that have absolutely no bearing in reality or fact. In reality, the more extreme CRA Belleville becomes, the more it proves our point that they are totally out of control and determined to win at all costs. It has got to the stage that their assessments are no longer logical, credible and certainly not believable.

Going back to the companies, whose records the CRA seized at our bookkeeper’s office in Lindsay, they have now commenced a campaign to close them down. They obviously found nothing wrong with the books that they illegally seized and kept for months while they searched for something to pin us down. They didn’t find anything so they have resorted to making things up.

In the case of 4 of our restaurants which are really British pubs, they have alleged that our books that they seized are “UNRELIABLE”. This is startling, as they had at the bookkeeper’s, the complete set of electronic records and all the paperwork.

This term “unreliable” seems to relate mainly to food sales as they claim to have gone to the vendors of our alcoholic beverages and obtained from them directly the invoices. Interestingly, these invoices seem to tie up with those invoices they seized and their assessment of our alcohol sales are very similar if not identical to those reported originally to CRA by our bookkeeper herself. Obviously they cannot make these sales up, so they have targeted our food sales by alleging that we sell $3.48 in food for every $1 of alcohol. This is astounding as it is well known that British pubs in Canada and elsewhere (even in Belleville) sell a considerable amount of alcoholic beverages, particularly beer. In our case, our ratio seems to be generally around 1:1 or less and the CRA assessment is completely lacking in reality.

What this all boils down to is that CRA Belleville are alleging that we are taking approximately $10,500 per week per Pub in cash sales of food that is not being reported. This represents approximately $45,000 a week which is over $2,200,000 per annum and an outrageous allegation with no proof or evidence whatsoever. Mr. Adnan Khan Assistant Director International Tax Services Office has looked high & low accross the world and come up empty handed.

Even the most casual visitor to a pub style environment would be able to verify that CRA are wide of the mark and simply making this up to destroy our businesses. They have already closed 2 of them down with these allegations and obviously want to put the remainder out of business.

It is impossible to believe that CRA Belleville believe their own allegations, partly for the facts stated above and partly because we are moving into a cashless society. Even McDonald’s and fast food restaurants take credit and debit cards as an everyday matter and cash itself is becoming obsolete. Do CRA Belleville live in a different world, or are they simply corrupt? Whether stupidity or corruption is destroying all of these jobs are becoming immaterial but the fact is that ordinary people are being devastated by the actions of a few civil servants that are abusing their power.

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