“Someone Says…” — Why Tax Myths Can Cost You

As accountants, one of the most common phrases we hear when discussing tax positions is:

“Someone says you can…”

It usually comes from a friend, a coworker, or “someone who knows a guy.” While often well-intentioned, this type of advice is one of the biggest sources of tax trouble we see. Unfortunately, when it comes to taxes, what “someone says” and what CRA allows are often very different things.

Below are a few common myths we regularly hear—and the actual facts behind them.

Common Tax Myths vs. Reality

Myth: You can write off your whole car if you use it for work.
Reality: Vehicle expenses are deductible only to the extent they relate to business use. CRA expects mileage logs and reasonable allocations. If your vehicle is used 30% for business, only 30% of eligible expenses are deductible.

Myth: Cash or side income doesn’t need to be reported.
Reality: All income must be reported, regardless of how it is paid—cash, e-transfer, or cheque. Not reporting income is tax evasion, not tax planning.

Myth: You can run personal expenses through your business to save tax.
Reality: Only expenses incurred to earn income are deductible. Personal groceries, vacations, or home renovations do not become deductible simply because you own a business.

Myth: If CRA hasn’t questioned it before, it must be okay.
Reality: CRA audits are often done years later. When reassessments happen, they can include multiple years at once—plus penalties and interest.

Why “Someone Says” Sounds Convincing

Tax rules don’t always feel fair. It feels logical that if you need your phone for work, the entire bill should be deductible. It feels reasonable that a small side income shouldn’t matter.

But tax law is not based on feelings, it’s based on facts, documentation, and legislation. CRA looks for evidence: receipts, logs, and proper reporting. What feels reasonable does not always align with what is allowed.

Where Reliable Tax Advice Comes From

The only reliable sources of tax guidance are:

• The Income Tax Act and CRA publications
• Qualified professionals, such as CPAs and tax lawyers

Friends and family may mean well, but their advice is rarely complete or tailored to your situation. CRA does not accept “but someone told me I could” as a defence.

The Bottom Line

If you catch yourself starting a tax sentence with “someone says…”, that’s your cue to pause and check the facts.

Good tax planning absolutely exists, but it must be based on accurate information, not myths or anecdotes. The cost of fixing a mistake after the fact is often far higher than getting proper advice upfront.

If you have questions about what is deductible, reportable, or allowed, please reach out before relying on what “someone says.” Turner Moore is here to help you make informed decisions, with confidence and peace of mind.