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New Diplomacy on the Horizon: U.S. and Russia Push Ahead Without Ukraine

  In a bold shift from previous diplomatic efforts, top U.S. and Russian officials have agreed to advance negotiations aimed at ending the war in Ukraine—even as Ukrainian representatives remain notably absent. High-level talks held in Riyadh, Saudi Arabia, saw U.S. Secretary of State Marco Rubio and Russian Foreign Minister Sergey Lavrov discussing the framework for future peace negotiations and steps toward restoring bilateral relations. The Trump administration’s approach, which prioritizes direct engagement with Moscow, marks a departure from longstanding principles that insisted on “nothing about Ukraine without Ukraine.” Critics in Kyiv have voiced strong opposition. Ukrainian President Volodymyr Zelenskyy warned that any agreement reached without Ukraine’s participation would be unacceptable and would undermine the nation’s sovereignty. European leaders echoed these concerns, with several officials labeling the move as a dangerous precedent that could lead to a “dirty deal...

How to Deal with the CRA's Penalty Rate Increase: Tips from a Tax Resolution Specialist

 

The Canada Revenue Agency (CRA) has announced that it will increase the penalty rate on overdue taxes from 5 per cent to 10 per cent, starting from January 1, 2024. This is a significant change that will affect many taxpayers and tax professionals.

The penalty rate is applied to the balance owing after the filing deadline, and it is compounded daily. For example, if a taxpayer owes $10,000 in taxes for the 2023 tax year and files their return on April 30, 2024, they will have to pay a penalty of $500 ($10,000 x 10 per cent) plus interest. If they file their return on May 31, 2024, they will have to pay a penalty of $1,016.39 ($10,500 x 10 per cent x 1.0319) plus interest.

The CRA says that the penalty rate increase is intended to encourage timely filing and payment of taxes, and to ensure fairness among taxpayers. However, some tax advisers are concerned that the higher penalty rate will create more hardship for taxpayers who are already struggling with the economic impact of the COVID-19 pandemic.

As a result, some tax advisers are shifting their strategy and adding a new title to their services: tax resolution specialist. A tax resolution specialist is a tax professional who specializes in helping taxpayers who have tax problems, such as unfiled returns, unpaid taxes, penalties, audits, or appeals. They can negotiate with the CRA on behalf of the taxpayer and try to reduce or eliminate the penalties and interest.

If you are facing a tax problem or want to avoid one in the future, you may want to consult a tax resolution specialist. They can help you file your returns on time, pay your taxes in full or in instalments, apply for relief from penalties and interest, or make a voluntary disclosure. A tax resolution specialist can also help you understand your rights and obligations as a taxpayer and protect you from aggressive CRA actions.

Don't let the higher penalty rate scare you into ignoring your tax situation. Contact a tax resolution specialist today and get your tax affairs in order.



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