When in doubt re-assess first.
Taxpayers who are selected for audit (most likely desk audit) will receive a letter from CRA. The letter may request additional information/documentation etc. They will tell you they will disallow certain expenses / claim and you have a chance to provide details to support your case. A decision will be made based on your submission to reassess or accept your position.
Taxpayer can appeal the reassessment within certain time frame and the taxpayer can go to Tax Court etc.
There are many "grey" that only the court can decide. I have one case that the corporate taxpayer had lost in the appeal lower court but won in the Supreme Court.
If there is doubt whether a taxpayer is non resident of not, chances are the auditor would disallow the non resident claim.
However the chance of being selected for audit is slim especially when the tax involve is not material. I don't know the threshold.
Canada has a honour system when it comes to tax filing. You may know many people who do this and that but never get caught. But I have seen many otherwise.
I can tell you what I think may happened but I can not predict CRA's probable action. I have been proven wrong in the past and I had proven some tax lawyers/tax specialist were wrong.
My advice is to hire a tax accountant if your case is complicated to save yourself most of the potential hassle. However, bear in mind that the professional will make suggestions based on your disclosure. Bear in mind that all position taken may be challenged by CRA.
CNTower2022-04-01 20:25:14
When you landed
You are deemed to have disposed all your stock and re-acquire them at the fair market value (FMV).
Does what you suggested have any difference with the deeming provision? Except that you will pay commission to dispose and reacquire the same stock.
It's like removing your pants to you know what.
CNTower2022-04-01 20:28:30
On the day you landed, you are deem to dispose of the shares at FMV and reacquire them at FMV. In this case you should have an appraisal to show the FMV on the day you landed. Or as close to the day as possible.
CNTower2022-04-01 20:29:38
Yes. T1135 requires you report foreign own property.
CNTower2022-04-01 20:33:37
Most likely reassess with interest penalty. However, if CRA determined that you are evading tax etc. Then the penalty can be 200% of the taxes and criminally charged on top of the interest penalty.
CNTower2022-04-01 20:40:20
Accountant is NOT God.
They make suggestions based on how they interpret the Income Tax Act based on information you provide them. However, CRA may disagree with your accountant's position.
The case you mentioned is not worth your while to seek a tax lawyer.