Tax Tips

Those of you who remember Perry Mason episodes on TV will recall how the public prosecutor, Hamilton Burger, had to prove his case beyond a reasonable doubt. If he didn't, the defendant was acquitted.

Many think the same logic applies to tax law. But in tax law there is a reverse onus.

Keep day-timers or copies of your PDA files that show all your appointments.

Make it a rule that when you attend a business meeting you keep the business cards of the people you speak to and roughly note in your day-timer what you talked about.

A woman tried to write off toilet paper as a medical expense (Canada);

A Vancouver man invented a wife on his personal tax returns for several years (Canada);

These expenses are disallowed because you have no receipts to support the amount claimed. The amount represented supplies for a small start up manufacturing business and the receipts lost in a move and a flood. (Canada, United States). Overturned in Canada and partially successful in the United States.