Client: Craig L.
Issue: Unreported income
CRA had discovered he had not reported $7,000 in income for a particular year. He was afraid of criminal charges as well as interest and penalties; he would have owed approx. $4,000 with the interest and penalties.
CRA took the case to tax court and we were able to obtain a refund of $1,200 by proving that the client was really in business without realizing it.
There were no criminal charges.