The Globe and Mail published an informative article on August 2, 2011 explaining the CRA’s new audit program that targets restaurants using software designed to suppress restaurant sales i.e., zapper software. In addition, the Globe reports that the CRA intends to “develop a broad strategy to tack the problem” and that, although several cases are under investigation, the CRA has successfully prosecuted two cases. Read the Globe article entitled Taxman Finds Rampant Restaurant Fraud.
Leveraged growth leads to CRA reassessments and disputes. This insight explains how exposure modelling, objection strategy, and dispute readiness affect a company’s ability to reduce or overturn a reassessment.
After a CRA reassessment, management must make decisions while the information is incomplete. Those early decisions shape the tax dispute, and lender and board scrutiny.
After a CRA reassessment, management makes decisions under unresolved conditions. This is not a failure of diligence; it is the normal operating environment.
This insight explains how management's initial framing of a CRA dispute with partners, lenders, and boards will shape stakeholders' evaluation of management's performance.
CRA’s audit architecture drives reassessments that behave like capital market shocks inside private companies. This article examines the structural forces at play and how executives maintain control once CRA formalizes its position.
How institutional continuity after a CRA reassessment shapes the advice management receives, influencing which options are developed and how tax disputes unfold.