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  • Financial Statements and CRA/Welfare

    We have recently discovered evidence that the opposing party lied about income on Form 13 (Financial Statement) and likewise in the notice of assessments filed with CRA.

    Should we report said party to CRA?

    This person also claimed welfare despite having income. Is it worth getting them involved too?

  • #2
    For what purpose, what are you hoping to achieve by reporting this person to CRA or welfare?

    Is it something that is truly affecting your case or would you be reporting them simply to be spiteful and vindictive?

    Comment


    • #3
      Well, if CRA or welfare found fraud it would certainly help our case.

      I am wondering if anyone has ever taken this step?

      Comment


      • #4
        And how do you think it would help your case? Privacy laws would prevent them from divulging any information to you.

        So again, for what purpose and what are you hoping to achieve?

        Comment


        • #5
          It costs CRA around $50-100/hour to investigate a claim of fraud. Unless you are talking TENS OF THOUSANDS of dollars, it's peanuts and reporting it typically does little more than make you feel a bit better.

          Welfare fraud might be a better bet, especially if you are dealing with the "sits at home on their butt and does nothing".

          It won't accomplish much, other than to make the other side a bit more uncomfortable. You won't be able to get any details whatsoever.

          Comment


          • #6
            they would suspect you and then maybe a shit storm would result. Not worth the risk.

            Comment


            • #7
              During an attempt to negotiate tax credits for our child, I had mentioned to my ex's accountant that I was only entitled to eligible dependant since she was in a common law (tax) relationship. He was unaware of this as the return that they were about to submit only claimed single. I had also stated that "yes she has actually been in this situation for the previous tax season as well". After knowledge of this he really wanted her corrections to be made. Told the ex that we needed to come to an agreement on the credits and that she needed to correct her returns. Her final statement or lie was "my accountant is comfortable with the way my returns are and that they are being filed as is". My response was that right now she had a grace period to come forward and correct this matter with CRA, after that I was going to file my return claiming the same credits for our child as well. Included in my return was a full explaination of the situation to CRA and I had also made a call to the fraud department. Over a 2 year period CCTB/OCB, HST/GST, tax refunds all totaled well over $12,000 (not including LAO) in funds that she was not legally entitled to.

              If there are any calculations for settlement, SS, CS etc. it can not be done correctly with false documentation or numbers.

              Any negative actions/response or b/s from the other party stems from an adult who refuses to accept responsibility for their actions.

              Comment


              • #8
                Originally posted by NBDad View Post
                It costs CRA around $50-100/hour to investigate a claim of fraud. Unless you are talking TENS OF THOUSANDS of dollars, it's peanuts and reporting it typically does little more than make you feel a bit better.
                That's assuming that CRA weights '$ to investigate' against '$ of expected correction'.

                I could never understand why they spent what I'd estimate as 1 full week trying (unsuccessfully) to attack my $200 HST claim.

                Comment


                • #9
                  CRA will randomly pick files to audit to give them a benchmark to compare similar claims.

                  They will look at yours, ask for receipts, and probably .1% of other claims across the country, and use what they find in order to flag unusual numbers that go through the computers.

                  This is a cost effective way of setting a threshold to determine which files to investigate in the future.

                  A friend of mine is a professional photographer. They audited her for no reason other than the above, and found nothing out of the ordinary, but it gave them a benchmark to compare all professional photographers to.

                  Comment


                  • #10
                    Originally posted by standing on the sidelines View Post
                    they would suspect you and then maybe a shit storm would result. Not worth the risk.
                    Why a shit storm? Would a judge think it was antagonistic if the opposing party suspected this?

                    Comment


                    • #11
                      Originally posted by FrustratedPartner View Post
                      Why a shit storm? Would a judge think it was antagonistic if the opposing party suspected this?
                      you dont think if the other party thinks you reported it that they would not be upset and angry at all?? Do you not think they would then be looking at ways to get back at you?

                      Comment


                      • #12
                        Originally posted by standing on the sidelines View Post
                        you dont think if the other party thinks you reported it that they would not be upset and angry at all?? Do you not think they would then be looking at ways to get back at you?
                        Fear of retaliation. The #1 reason why crime goes unreported.

                        We had contacted CRA because it had directly effected myself. My ex was asked to correct the false and missing info on her Form 13. The options offered to them was to either provide the corrected info, go to trial, or to use and file my statement for settlement that had included her corrected numbers. Within 2 weeks of trial date they had accepted the 3rd option.

                        Comment

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