Private Campgrounds CRA Taxation Issues

JaxDad wrote:


It seems most things the CRA 'decide' are more to do with the employee making the decision than the facts.

you are correct. the ambiguity in the tax 'rules' lets different auditors interpret them as they see fit. this is the problem with rules where the lines are not clear. you can spend $$$ arguing in tax court. you may win in the end, but you lose overall.

been there and done that ! (the auditor didnt get his way, but the rule is still obtuse in our case and non intuitive: we live with it as do many others in the same tax situation)

windviewer wrote:
The initial link was identified as a flash plugin for me (and I removed flash from my system). May depend on your browser and system I guess. I prefer to read the news anyway :)

I think the CRA argument is that the primary income of a campground is 'rental income' and not services; and rental income is not qualified business income (apparently) for the small business tax rate.

The primary income of hotel / motels is 'rental income' also, but they qualify without issue according to this mornings news.

I wonder if the 3 years the tax folks are griping about represent a change in use / income, or CRA employee?

It seems most things the CRA 'decide' are more to do with the employee making the decision than the facts.

windviewer wrote:
The initial link was identified as a flash plugin for me (and I removed flash from my system). May depend on your browser and system I guess. I prefer to read the news anyway :)
......

Thanks

Bumpyroad wrote:

Jack_Diane_Freedom wrote:
Well if a campground is not a small business.....what is it?

I've been in some that have been a big business. but you gotta support that "free" medical care you get.
bumpy

Bumpy, most of us Canadians realize that our 'free' medical care has never been free (but I digress!).

What we don't know is how the taxation has always been treated, i.e. Is this a sudden change or has there been some dialogue in the background that we are not aware of. If this is indeed a 'new' requirement then I can imagine that the average small sized campgrounds might be hard pressed to just swallow the additional taxes. As campgrounds in Canada are a typical 5-month business at best, I'm guessing there is not a ton of margin in their financial structure.

... Eric

Jack_Diane_Freedom wrote:
Well if a campground is not a small business.....what is it?

I've been in some that have been a big business. but you gotta support that "free" medical care you get.
bumpy

The initial link was identified as a flash plugin for me (and I removed flash from my system). May depend on your browser and system I guess. I prefer to read the news anyway :)

I think the CRA argument is that the primary income of a campground is 'rental income' and not services; and rental income is not qualified business income (apparently) for the small business tax rate.

Well if a campground is not a small business.....what is it?

windviewer wrote:
For those that can't or choose not to watch FLASH videos, the information can be read at http://www.ctvnews.ca/business/cra-says-private-campgrounds-not-eligible-for-small-business-tax-rate-1.2876452

I didn't think it was in Flash since my system can't use Flash. :h

... Eric

For those that can't or choose not to watch FLASH videos, the information can be read at http://www.ctvnews.ca/business/cra-says-private-campgrounds-not-eligible-for-small-business-tax-rate-1.2876452