Being paid in cash causes problems for two taxpayers who claimed COVID-19 benefits

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Being paid in cash causes problems for two taxpayers who claimed COVID-19 benefits — via financialpost COVID19 Taxes PersonalFinance

But the lack of appropriate records can prove problematic for some taxpayers. For example, a parent who incurs babysitting costs to enable them to earn income from employment, carry on a business or attend school may be able to. It would be wise for them to hang on to proof of payment should the CRA question the deductibility of those expenses.

, each of which hinged on whether they could prove they earned at least $5,000 in income to qualify. Let’s take a brief look at each case.The first case involved an Alberta taxpayer who immigrated to Canada from Bangladesh following the death of her husband in 2001. She lives with her son and his family, and provided babysitting services for her son’s children, for which she was paid in cash.

The taxpayer then appealed to Federal Court, asking it to determine whether the CRA’s decision to deny her the CRB was “reasonable.” As with prior decisions, the court must decide whether the decision under review “bears the hallmarks of reasonableness — justification, transparency and intelligibility — and whether it is justified in relation to the relevant factual and legal constraints that bear on that decision.

Source: Entertainment Trends (entertainmenttrends.net)

 

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financialpost LOL. Too bad for them.

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