T4A Reported & Not Reported to CRA

Tax Topics
1

I have a client who received a letter from office indicating
a. T4A earning that are reported to CRA. However the client was not issued a T4A
This column shows T4A Box 20 Total of Bonus & Commission $—

The other column shows the following details

b. Other earning Not reported to CRA

1.This column shows Retail Sales Profit (RSP) $--- Total amount
 2.Misc Fees                                                       $----(Negative amount)
 3.CRF Donation--------------------------------------- -$--- (Negative amount)
 4.Other total---------------------------------------------$      Result Line 1  Minus (Line 2+3)

I have three questions.

  1. Should we report Situation “a” on T4A on Box 20, although no T4A was issued to client but reported to CRA.
    2.Do we need to report situation “b” & if yes. Should we report 4 Other Total on Box-20.

If both of the above are yes. then should we report both on one T4A.
Sorry for inconvenience & thank you in advance for your assistance.

2

Since a taxpayer can be heavily fined and even go to jail for not reporting all income, and/or creating false T4As, and/or not keeping proper business books and records pursuant to Section 230, the taxpayer may wish to take more diligent steps than they appear to have taken so far to write up their books and records properly.

3

Thanks Joe, my question was how to report & not how to avoid. What would I benefit for not reporting a small amount of income.

4

In that case, you should advise the taxpayer to go away and have his bookkeeper and his accountant write up and prepare his business records pursuant to Section 230, and not come back to you until he has done so and can give them to you for the purposes of tax return preparation.

5

@IMA
Who is this “office” that issued a letter to your client? Is your client a commission sales person? Was he/she an employee of “office”? Is he/she a self-employed contractor that provided services to “office”?

The letter may mean nothing if it is just an informational notice from your client’s employer. But, it is weird that it talks about T4A income without issuing a T4A.

Regardless of the T4A, if your client earned business income, it must be reported on a tax return. If your client is an individual, that means filling out a T2125 (from his/her accounting records).

6

Thanks, agreed