I called the CRA last week to check a corporate tax account. As I was putting together a quick ntr I noticed a strange entry. The bookkeeper had credited the prior year’s taxes payable and debited retained earnings. It seemed weird. And I wanted to confirm that the corporations taxes had actually been paid.
Honestly, what’s up with the CRA sometimes. This is a routine call. It shouldn’t last longer than a few minutes. And I hate getting hung up on the security questions.
CRA worker: What’s the business’s address?
Me: [I give her our firm’s address]
CRA worker: Sir, I need the business address not your firm’s address.
Me: I understand. They both have the same address.
CRA worker: That. Is. Impossible.
Me: Are we actually gonna have to do this?
CRA worker: Sir you have to give me the businesses address.
Me: No no, you don’t understand. It’s an investment corp. Some guy probably bought a GIC, incorporated a business and then put it in the business. The business doesn’t “do” anything. It collects interest. We probably gave you our address because it’s easier for us to deal with any problems that come up. It’s quicker than sending the stuff to the guys house and having him call us up with an issue.
CRA worker: Sir, I don’t think you understand our procedure we…
Me: Give me my tax balance!!!
CRA worker: Sir, we need to fill out the proper…
Me: People like you are the cause of our global financial crisis [click].
Turns out the entry was to set up a prior year amount. And the corp paid the taxes through their bank.