1. Tell all your friends about your tax situation – CRA does use informants so be careful when sharing – even with your significant other!
2. Keep bad records- helps CRA deny or disallow your expenses. CRA loves to see you mixing business with personal so they can deny anything that looks remotely like a personal expense!
3. Be in a “project” industry – industries that CRA perceive as “Subject” will likely be audited.
4. Contribute to “Too-good-to-be-true” tax shelters – If it sounds too good to be true, CRA will probably think so as well!!
5. Be self-employed – it’s an invite to CRA to look at your books. Employees have few deductions so are of little interest to CRA. The self- employed always have deductions to deny!! Another reason to incorporate!!