The Taxpayer and the Voluntary Disclosure

When a taxpayer feels that the filing of the tax return was not so accurate, there are bound to be fears concerning possibilities of a CRA audit and assessment. This will also be the case for those employers who have not remitted their Sales Taxes or their payroll deductions. It will be a nightmare of suspense for an individual who has not bothered to disclose the earnings from abroad. All such people should actually thank the CRA for implementing the Voluntary Disclosure program.

Now, a taxpayer can rectify inaccurate or insufficient filing of tax returns without being afraid of penalties or prosecution. Voluntary disclosure allows these taxpayers to prepare and then assess the outcome of their disclosure. They can do this either on a named or even on an anonymous basis.

In the case of a named voluntary disclosure, the taxpayer will have to provide a Form RC 199 or a Taxpayer’s Agreement Form, along with the full postal code and other contact details that include the Social Insurance Number. In the case of an anonymous voluntary disclosure, the taxpayer will have to disclose only the first three digits of the postal code and the contact information of its representative, the gender and age of the individual, the taxation years and the reporting periods that are going to be involved in the voluntary disclosure. Other things that have to be disclosed are the amount of the correction in taxes, the type of the return which is involved, the type and the reasons for their earlier omission, the principal business activity of the submitter and how he or she will be able to meet the conditions of use set by the CRA.

There are several benefits to using the voluntary disclosure program. The principal one being the way it provides the taxpayers a safe method, relatively speaking, of rectifying the deficiencies in their previous tax return filings. The other biggest benefit is the prevention of the enforcement procedures special investigations into your financial affairs. The CRA will not take any action against the taxpayer if he or she discloses before an investigation notice of assessment or an audit is initiated. The taxpayers have to be aware that the consequences of a criminal prosecution can lead to a jail time of one year per charge along with penalties that may range anywhere from a thousand to twenty five thousand dollars. Many taxpayers have lost sleep and have suffered emotional stress from this burden.

People who avoid thinking about voluntary disclosure have to be aware that the penalty for late filing on the first offence is five per cent of the balance of the taxes that is outstanding and one per cent for every month that the balance will remain outstanding to a maximum period of one year. For any additional offence, the penalty goes up to ten per cent of the balance which is outstanding and two per cent for every month to a maximum period of twenty months. Interest is also added to the principal amount and it is charged in the next month.

The Difference between Tax Evasion and Income tax Fraud?

There is a significant difference between the concept of income tax evasion and that of an income tax fraud. A comparison can be done by drawing a parallel to the Government of Switzerland and its tax treaty with the United States of America. For example, the Swiss Government will shield its largest bank from the investigative clutches of the tax authorities in the case of a tax evasion concept while an income tax fraud will signify a person who holds a Swiss bank account for the purpose of hiding illegal wealth.

To expand the example further, Switzerland is a place with full tax jurisdiction but it is also famous for its secrecy laws in the banking sector. About five years ago, the United States Justice Department deferred the prosecution of UBS AG, the largest Swiss Bank, in exchange for the revelation by the bank of the identity of about three hundred clients who were resident of USA. The bank, ultimately, acknowledged its contribution and participation in the violation of the laws of the United States. Secrecy or no secrecy, such principles or schemes contribute in defrauding the country from where the residents store their illegal and undisclosed wealth in Swiss banks, amounting to an income tax fraud.

Even then, the deferral of the criminal prosecution did not hold back the IRS from chasing claims against the U.S. taxpayers. IRS issued summons to UBS AG Bank asking for confidential information on not one but fifty two thousand accounts with an approximate value of about fifty billion dollars in assets. The Swiss Government, as expected, refused to help with the summons by declaring that such acts violated the Swiss banking secrecy laws.

There was another quaint angle to these proceedings. The U.S.-Switzerland Tax Treaty calls for information exchange requiring respective tax authorities to share the tax information for avoiding an income tax fraud. The Treaty, however, provides that neither parties is obligated to execute administrative measures that are in conflict with their domestic regulations and legislation.

The difference between income tax evasion and income tax fraud could be explained by this incident in full. The summons from IRS to the UBS AG Bank have given rise to a legal battle on an international front that are testing the tax treaty obligations against the laws of banking secrecy. The Swiss government has drawn the line on the difference by maintaining that tax evasion cannot, by itself, be evidence of an income tax fraud.

The big conjectural question on this issue is that the UBS AG Bank has admitted being guilty to activities that resulted in the deferral of the criminal prosecution, but it holds its ground at the same time that an income tax fraud is not the same as tax evasion by not disclosing the requested confidential information.

The vital distinguishing feature of an income tax fraud is an intent by the taxpayer to defraud the government by not paying the taxes which are lawfully due. An income tax fraud is punishable by both civil and criminal penalties. The government has to show the burden of proof to determine the case of an income tax fraud by a taxpayer. Practically, if the taxpayer has a reasonable legal argument to back up why he or she has not paid the due taxes, it is likely that the taxpayer will escape criminal charges.

The Civil Consequences of Tax Evasion Canada

People have to think a thousand times before pleading guilty to tax evasion Canada because of the civil consequences they may have to face. It is a general case that tax evasion Canada is followed up by criminal charges and it is accompanied with a civil assessment or the reassessment of taxes. The CRA will be keen to get to the bottom of the reason why the taxpayer was concealing more income than he or she intended to declare.

The basis of the tax evasion Canada charge is the very failure to declare the income earned during the year. The taxes are reassessed depending on the income which is undeclared and it can bring in heavy negligence penalties.

There may be many reasons why a taxpayer may want to plead guilty to a criminal offense like tax evasion Canada. When a taxpayer seeks professional accounting and legal help, he or she is advised as a client when being charged with tax evasion Canada that it is necessary for him or her to understand that a guilty plea would bring in consequences which may include that the plea stands as prima facie or it could be a proof of facts which is equivalent to a reassessment of taxes.

It is important, therefore, for professional counselors, who are representing a taxpayer who is about to plead guilty for tax evasion Canada, to understand that the plea for guilt is actually an admission of the basic elements of the offense. This also applies to a taxpayer who has been reassessed. During a tax evasion trial, the defense may have an agreement concerning relevant facts for the sentence. At other periods, facts could be disputed and the party which is trying to rely on disputed facts will have to prove them. To give an example, a taxpayer may agree that he or she is guilty of tax evasion Canada in a particular year but at the same time, may disagree as to the amount involved of the taxes. In such cases, the defense counsel during the criminal proceedings have to take care in establishing the facts that may be agreed to. At the same time, the adviser in the civil proceedings have to assess carefully what the guilty plea may stand for and what it may not stand for.

Before understanding the reasons that contribute towards tax evasion Canada, it is important to take a look at the concept of beneficial ownership which is a common law that distinguishes the rights that a person holds with a beneficial interest in property or assets from those who hold such interests legally and in name. The common law that surrounds beneficial ownership is a little complicated but is signifies that when a person holds or owns a property like a house or securities legally, his or her name will be on that property or it will be properly disclosed. But, when a person holds a property beneficially, the said property may not be registered in his or her name and the true owner may remain obscured.

The issue of tax evasion Canada may revolve mainly somewhere around beneficial ownership of private corporations or trusts while also involving ownership of real property. This concept identifies the important roots of the tax evasion Canada problem as it could open the Pandora’s Box to money and tax laundering.

Taking Advantage of Tax Amnesty Offer by the CRA

When there is a situation where you have to take up the tax amnesty offer provided by the CRA, it is advisable to seek expert professional advice on these tax matters. Tax amnesty offers a second chance to the Canadian residents who have not filed their taxes regularly and are feeling nervous about it. After all, it can be deemed as a criminal offence if you do not file your tax returns.

Many taxpayers, whether they are individuals or business corporations, have a cause to worry if there are any unfiled tax returns or cases of income which have not been reported accurately. There may have been cases of overstated expenses too. There is a tendency that if a taxpayer does not file an income tax return for any single year, he or she try to hide while filing subsequent returns of taxes. They are scared of the possible consequences and the reaction from CRA.

The tax system in Canada is self-assessment based. It means that the residents are required by law to file their income tax returns and also include all their sources of income that involve foreign earnings or other offshore income. As the system is rather complicated, many taxpayers evade from reporting deliberately.

Taking the tax amnesty route is a possible way for the taxpayers to declare by coming forward all their tax returns which they had not filed earlier. There are few tax firms in Canada that specialize in handling tax amnesty and voluntary disclosure program. They deal with the CRA to prepare tax returns and to file for tax amnesty for their clientele.

Any taxpayer who has not filed his or her income tax returns or not filed GST returns can take advantage of the CRA’s tax amnesty offers. This stands true in cases of income which has not been reported accurately previously, involving tax evasion or earnings from illegal activities. This is the same as using voluntary disclosure or a tax pardon program.

When CRA offers a tax amnesty program, the situation is not something that has to be met with nervousness. By filing a voluntary disclosure and coming forward to report their undeclared income, taxpayers can breathe easy with relief as the process is not unpleasant, particularly when they have their accounts represented by professionals. In the bargain, they also avoid civil or criminal prosecution. They will also save themselves from penalties and have their interest charges reduced.

A taxpayer qualifies for the tax amnesty offer only when

  • CRA establishes that the disclosure is voluntary and that it is accurate and complete.
  • The disclosure involves a penalty.
  • The disclosure includes information which is at least a year past or earlier.

The disclosure by the taxpayer has to be done before CRA approaches that particular taxpayer with a demand to file. The disclosure should not be just to cover up late filing under a year from the due deadline for the purpose of avoiding late filing penalties or prosecution. To be eligible for the Tax Amnesty program, all the conditions above need to be met.

 

Getting Ready to File Income Taxes Past Years

It will never be too late for you to file your income taxes past years. People think in terms of filing their income tax returns generally for the current year. But, if you have not filed tax returns for the past few years or you have tax returns which are overdue or outstanding, you can seek tax accounting help from professionals.

 

People who have not filed income taxes past years have to be wary about penalties for tax returns which are being filed late. CRA may apply a penalty for failure to file the taxes on time. The defaulters may also get a Notice of Assessment. This notice will summaries the earnings on which the default assessment has been based. The Notice will also inform the defaulters the date by which the overdue returns have to be filed. Penalties will be severe on people who have more than a single tax return which is outstanding in their name or if they have a poor history of tax return filing. All those who have not complied with a request to file their tax returns will be dealt with severely.

 

The CRA can collect information concerning your income taxes past years from your banks, employer and other government agencies. If you seek professional help, the tax accountants will be able to connect your Social Insurance Number and can access details about your filing status with the CRA to ascertain the actual submission periods that have been reported.

 

The accounting firm will also work with you to ascertain the deductions that could be relevant and help you in locating that information. If you are able to retrieve your past receipts, information, expense bills and bank statements for the purpose of filing income taxes past years, it would make things easy for you and your accountant. There are few deductions that you will be in a position to claim even when you do not have receipts.

 

Your tax accountant can submit a nil returns if you were not required to file a tax return for some of the total outstanding years when you decide on filing income taxes past years. This will help you to get up to date with the CRA tax office. When you complete your tax returns which are outstanding by filing for income taxes past years, you may be able to match your past entitlements for the benefits due to you like, GST tax credit, child tax credits.

 

When you file your late return, you may still be entitled for refunds to take advantage of that. It will be a daunting task to retrieve all the information and compile it on your own. It is, therefore, better to take professional help. It will give you the peace of mind when you bring your tax records up to date with the CRA. The tax accounting firm can help you in keeping your records in a systematic manner. It can help you with your record cards, newsletters, annual reminders, bank statements, log books, receipts and bills.

Taxpayer Relief on Account of Natural Disasters

Many Canadians are not aware that taxpayer relief could be available to them in circumstances where the taxpayers are late when filing their GST returns or in remitting the required GST as a result of the disruptions that are caused by natural calamities and disasters.

Natural disasters could strike anywhere. You can take the example of the worst flooding that Alberta was affected a while ago. It is important to note that, as far as tax obligations are concerned, if you are unable to fulfill your tax obligations due to any natural disaster like flooding, taxpayer relief may be available to you from the CRA.

The Canada Revenue Agency has also reminded the taxpayers in the country of the availability of the provisions of taxpayer relief to them in respect of the flooding some seven months ago. There is a taxpayer relief provided for corporations who were unable to file the T2 taxation returns. The taxpayer relief provisions are available to all the taxpayers and they will include individuals, organizations, partnerships, trusts and also the GST/HST registrants.

In normal circumstances, when a taxpayer does not file the tax returns and remit the correct sum of taxes to the CRA as it is required by law, he or she is going to be subject to a specific penalty of a fixed sum along with the interest charges on the balance of the tax amount outstanding. The taxpayer relief provisions allow for the cancellation or the waiver of interest and the penalties in part or in full.

The cancellation will refer to the interest and the penalties which have already been assessed for which the taxpayer relief is granted while the waiver will refer to the interest and the penalties that have not been assessed yet for which the relief is granted.  The taxpayer relief provisions are not restricted to any particular situation although CRA has made it clear in its publications that the provisions will apply in three broad categories. These are:

  1. Circumstances which are beyond the control of the taxpayer including events such as natural disasters.
  2. Errors or mistakes committed on part of the CRA’s actions.
  3. Inability to pay by the taxpayer on account of financial hardship.

The taxpayer relief provisions are not applied by the CRA automatically. The taxpayer has to request the application of these provisions as per the category of the `Circumstance’ and it has to be applied on CRA’s required form along with the contact information, Social Insurance Number or the GST/HST Registration Number, the taxation years that are involved, giving full details of the facts and the reasons behind the Circumstance. The details will have to include how the circumstance has had an impact on your ability to meet the tax obligations with relevant documentation as a support. It has to be accompanied by planned steps that will be taken to resolve the inability to comply.

For taxpayer relief periods, initially CRA allowed only past ten years of tax owing and would disallow relief request for any tax debts owed more than ten years ago. Recent court case changed the direction and forced CRA to extend the time period to more than ten years. However, the penalties or interest relief only applies to last ten year taxes owed although the tax debts was started more than ten years ago.

 

The Tax Evasion Canada Program with Whistle Blower Rewards

The 2013 CRA budget announces the CRA’s initiative to encourage Canadians to provide relevant information identifying tax evasion especially for international tax evasion. The latest changes in the `Stop International Tax Evasion Canada Program will enable the CRA to reward those individuals who have knowledge of major cases in tax non-compliance on an international level. The incentive will be as much as fifteen per cent of the income tax amount collected on account of the information that has been provided. As per the Statistics Canada Bureau, the Canadian funds in the biggest tax havens in the world have gone up to a record one hundred and seventy billion dollars.

The fifteen per cent rewards in the tax evasion Canada Program are going to apply only to those tax assessments or the reassessments on the international transactions which are over one hundred thousand dollars. So far, the federal government has been able to convict only around forty people with offshore tax cheating through the tax evasion Canada Program since the past eight years and the total amount of fines that have been levied are about seven million dollars in taxes that had been evaded.

The new changes in the tax evasion Canada program system are going to bring Canada in line with other important countries like the United States of America, Germany and the United Kingdom. The new kind of reporting criteria is going to require the banks, the co-operative societies and the credit unions along with the loan and trust companies to report to the CRA. The reporting will include all incoming or outgoing electronic fund transfers of ten thousand dollars and above. These standards will be the same as set by FINTRAC, the Financial Transactions and Reports Analysis Centre of Canada.

Presently, individuals, corporations and trusts who are owning foreign investment properties costing more than one hundred thousand dollars have to file a Form T1135. The CRA does not have the power to reassess these people for additional tax after the normal assessment period. The relevance of the voluntary disclosure program has been increased. It will allow the taxpayers to come forward proactively to disclose any non-compliance in the past, resulting in penalties getting waived. The interest which is assessed on the tax will get reduced. The potential criminal prosecution for tax evasion Canada also gets waived.

It has to be remembered that the tax evasion Canada prosecution is a criminal one. This kind of case is prosecuted under Section 239 of the Income Tax Act. There are a couple of ways that this kind of prosecution can proceed. One is by means of a summary conviction that carries a potential penalty of a fine which is not less than fifty per cent and not more than two hundred per cent of the tax amount that was evaded. Imprisonment can also be charged for a term not exceeding two years. The second kind of prosecution is by indictment that carries a penalty of not less than one hundred per cent and not more than two hundred per cent of the tax amount which was evaded with imprisonment not exceeding a period of five years.

Best Practices in Dealing with the Canada Revenue Agency (the CRA)

It is a well-known fact that dealing with the CRA is never an easy task.  To make things worse, the combination of dealing with the most confusing and complicated statutes ever written by tax lawyers, and dealing with the CRA, one of Canada’s most powerful and sophisticated agent, can prove to be challenging to even the most experienced tax professionals.  Taxpayers should never even think that they can resolve their tax problems easily or quickly on their own without professional help.

Always remember that what you say to the CRA can be harmful to your case.  As the information you provide to the CRA can be used against you. It doesn’t matter how friendly the CRA agents seem to be. Their jobs are to collect tax revenue, not to protect your interests.

Typically, professional help can ensure you pay the least and legitimate amount of tax.  However, there will be a fee involved for any professional service in dealing with the CRA’s tax problems. As taxpayer, you need to weight the costs and benefits of hiring a professional help while making sure the overall benefits outweigh the costs.  The bottom line is that at the end of day you are financially better off after professional fees are paid.

When dealing with the CRA, just like dealing with court system, you need to keep good documentation or proof.  Keep a good log of the communications with CRA agent including after talking to the CRA over the phone, write down what you said, and what was the response from the CRA; write down the details such as the number, the date and the time of calls you made to the CRA, and more importantly the agent ID and name of the agent you spoke to.  The CRA has many agents with different levels assigned to them answering the calls – and without a way to track the person you spoke to – you might as well not bother with writing down anything.

Another good practice is for you to try to pay some or full amount of tax owing whenever possible because this will stop the interests compounded daily from growing. Some people worry about paying taxes is a sign of admitting guilt. That is far from the truth. The payment itself will not be treated as if you have accepted defeat.  If you end up being right after the fight, that money you prepaid will be refunded.

The Canadian tax system works on the voluntary basis therefore taxpayers are under obligation to correctly report and paying the taxes owed.  If the CRA comes after you because you did not file one time or pay the tax owed, you are required to pay penalties, interest on the amount you should have paid.  As a rule of thumb, every seven to ten years the principal can be doubled depending on the interest rates. Many taxpayers are overwhelmed when they discover that of the large tax debts they owe, half is the interests.

Paying the tax debts as early as you can may become one of the best actions you’ve ever taken; even if you can’t pay it off in a lump sum, do make a budget to start paying it by installment and do it immediately.  Believe it or not, trying to resolve any tax problems with the CRA can take long time. For instance, tax dispute or tax relief with the CRA can take years.

Setting up Tax Payment Plans with CRA

When the CRA processes your income tax return, it will send you a Notice of Assessment. This Notice of Assessment will show a tax balance that you owe to the CRA and it is possible that you may not be in a position to pay this amount immediately and in one lump sum. When you cannot pay the amount owed, you can get professional help by contacting a tax service office to set up a tax payment plan schedule which will be mutually acceptable to you and the CRA.

It is crucial on your part to let the CRA know about your payment problem. It’s important to work out a tax payment plan schedule as early as possible. If you fail to do so, compound interest will be charged to you on the unpaid tax balance and the interest penalty will begin from the annual filing deadline. It will continue until the full tax amount is paid.

The CRA allows taxpayers to pay their tax amounts in installments if they can prove financial hardship. These taxpayers will then be required to pay their income tax amounts in regular installments within the financial year according to a tax payment plan they will submit rather than paying a lump sum amount on 30th April. This takes place when insufficient income tax is withheld from their earnings over the course of a financial year.

Common sources of income that may cause such a situation are rental income, self-employment income, investment income, income from more than one source of employment and some pension payments.

Once a tax payment plan is negotiated, you can remember that income tax installments can be paid by sending post-dated cheques to the CRA or through the `My Payment’ service or through your financial institution.

The tax payment plan can also be worked out with the CRA as a pre-authorized payment plan. The installment payments that are pre-authorized can be debited from your bank account. This kind of a pre-authorized tax payment plan can be arranged with the assigned CRA collection agent. You can also complete the pre-authorized tax payment plan through the monthly Installment Payments and mail it to the CRA. Once a tax payment is settled with CRA, you are required to make steady payment as agreed on. Default payment, even once, may jeopardize the validity of the negotiated tax payment plan.

 

Why is it important to get professional Canadian Tax Audit Help?

When you get a letter in your mail from CRA, it is time to get yourself Canadian tax audit help. If you want to handle tax filing and face a tax audit yourself, then it could develop into a nerve racking experience for you. Income tax audits are slowly but surely becoming a certainty just like life and death in Canada, . A tax audit could be frightening but it may not become inscrutable. Success can be achieved in this madness through the right kind of advice from tax audit experts.

A tax audit could be described as a scrutiny of your tax returns. During the process of an audit, a CRA examiner will make an assessment of your tax return, line by line. If something is not found to add properly or if the return includes something which is unusual, the examiner will highlight the errors or discrepancies and will ask you to explain or justify your entries. This is why you need Canadian tax audit help.

When you seek tax audit help in Canada, you will find out that there are different kinds of tax audits. They could be office, correspondence or field audits. Canadian tax audit help will prepare you in how you can avoid such investigations. Through correspondence audit, CRA will examine and correspond through mail. This is usually for the common tax return issues like missing schedules or forms or illegible entries and calculation errors.

In a field audit, you will require tax audit help because the CRA examiner will visit your house in order to verify the information that you have submitted on your tax return for that financial period.

You will require Canadian tax audit help even during an office audit where you have to go to the office of a CRA examiner. The examiner will mostly require your tax accountant or representative to prepare and bring all the documentation such as receipts, pay stubs or account statements.

Once you receive information about a tax audit, you have a month to respond and get adequate Canadian tax audit help.  If you do not agree with the points laid out by the CRA concerning your tax returns, you may appeal their findings. This appeal will be handled by a CRA Appeals Officer and the proceedings may go on for a year or even longer.

If you have taken a client on business entertainment to a restaurant, it could become a business expense that could be justified. When you get Canadian tax audit help, you will be shown how you can maintain the relevant receipts and give out proper explanations for all audit queries.

A period of three years is set aside as a limitations’ statute on the audit of tax returns that were filed within the time limit. If you keep records properly and get professional Canadian tax audit help, you could handle whatever audit inquiries the CRA may have.

Working out a Tax Payment Plan with CRA

If you are facing a tax audit or have a huge tax debt to settle with the CRA, you need professional help to work out a tax payment plan with CRA. Some people run into financial difficulties and do not put aside sufficient money to pay the year end taxes. They should be proactive and keep themselves ready to negotiate a tax payment plan with CRA.

In a situation where you are not able to set aside the money that you need to pay your tax bills, you have to remain calm and take help to work out a tax payment plan with CRA. You can do nothing at first but wait for the notice of assessment to arrive from the CRA in your mail.

You may then seek professional help to get in touch with the collection department and suggest a tax payment plan with CRA. The professional tax consultants then aim to build up a relationship with the collection agent of the CRA while handling the process of your tax audit.

You have to be honest enough with your tax consultant and apprise him or her of your actual tax situation. You cannot promise more than what you can muster. Once you work out a tax payment plan with CRA, you have to stick by it. If you default with that plan, immediate action can be taken against you by the CRA and they can freeze your bank accounts. The idea is to be truthful in working out a tax payment plan with CRA.

When you are trying to negotiate individual or corporate taxes, it is better to come up with a tax payment plan with CRA that gets them their tax dues within a period of six months. When this is the case, you will find that the CRA collection agencies would be quite patient with you.

If you are a director of a corporation and even if you are not active in that corporation, you could be held liable for the HST trust money and the payroll taxes. You could face serious penalties if you are failing in your job as a director while not making sure that the tax money is being remitted properly. It is always safer to consult professionals so that there is a tax payment plan with CRA.

When working out a tax payment plan with CRA, you have to be sure of the installments that you fix. These installments are those periodic tax payments that you have to settle to the CRA on fixed dates to cover your tax dues that you would have otherwise paid as a lump sum amount on 30th April of the following year. Installments are never paid as an advance. They are settled throughout a calendar year in which you have earned your taxable income.

When working out a tax payment plan with CRA, you have the choice of three installment options. The first is a no-calculation option which may suit you if your income and deductions stay constant every year. The second is the `prior year’ option which may suit you if your current year’s income is similar to that of the previous year. The third is the `current year’ option which may suit you if your income and deductions are considerably different from the previous couple of years.

Filing of Corporation Income Tax Toronto

For corporations in Canada who want to claim the small business deductions when filing corporation income tax Toronto or other Canadian cities such as Calgary, Vancouver, the net tax rate effective from January 2012 has been 15%. The corporation is a popular business structure form in Canada. This is because the distinction in liability protection for  corporations offers as against a sole proprietorship concern. Canadian corporations are taxed slightly differently than the other business categories when filing the corporation income tax Toronto or other Canadian cities such as Calgary, Vancouver.

The important tax change when considering corporation income tax Toronto or other cities is that the corporation is a legal entity within its own rights and is taxed separately from individual proprietorship. There are different kinds of corporations in Canada. The type will determine whether or not a corporation can claim certain deductions and rates. An important type of corporation in Canada is the Canadian Controlled Private Corporation (CCPC). It has to be incorporated in Canada. The shares of its capital stock are not listed by class on any designated stock exchange. A public corporation is defined by getting its category of shares listed on a Canadian stock exchange which is designated as a public enterprise.

Canadian corporations have multiple methods to reduce the income tax amounts in Canada. They have to either follow some tax guidance which will help earn them some tax credits or they will have to take advantage of income corporate tax credits.

As all corporations are distinct legal entities, they have to complete and file a T2 Form every year. This is applicable to all corporations operating in Toronto or other Canadian cities even if the corporation happens to be an inactive one. The one exception to the rule is if the corporation is a registered charity enterprise.

Corporation Income Tax applies to all corporations with a T2 Short Return Form if they are a Canadian controlled private corporation through the tax period. The corporation could have a nil net income or a loss for the purpose of income tax. The corporation also should have a permanent establishment in only one territory or a provincial region. The corporation should not be claiming any refundable tax credits in addition to the refund of installments that it has paid. For a T2 Short Return Form, it is also mandatory that the corporation not receive or also pay out any taxable dividends. The corporation has to report its accounts in Canadian currency. In absence of all these conditions, a corporation has to file a regular T2 Return.

It is recommended that the Corporation Income Tax returns be prepared by experienced and professional tax experts as completion of a T2 Corporation Income Tax form will require usage of the General Index of Financial Information (GIFI) and it is more complex than the T1 Personal Income Tax Return.

Corporation Income Tax in Toronto or other cities has to be filed within half a year of the end of the fiscal year. If the year-end date for filing taxes is March 31st, it has to be filed before 30th September of that year.

Corporation Income Tax in Toronto or other Canadian peer cities can be filed electronically through an eFile and this applies to even non-resident corporations. If a corporation has any balance outstanding due on its corporate income tax, that balance has to be paid within a period of two months after the close of the tax year.

 

CRA Tax Problem Help in Toronto and Other Canadian Cities

Many people in Canada find themselves facing a tax debt that may become too big for them to handle when CRA knocks at their doors and starts giving them deadlines to work out payment plans. It is not an easy task to deal with a CRA collections officer who could be aggressive.

Seeking tax problem help in Toronto or other cities in Canada becomes an important in part of handling the CRA tax people. CRA will generally accept a payment schedule that may stretch up to a period of six months. In order to clear yourself  of a tax mess, you require professional tax problem help in Toronto or other Canadian cities because you have to understand thoroughly about the options available to you and how best you can begin to protect yourself and your business assets.

You really need some tax problem help in Toronto or other cities for there are cases when CRA will refuse to negotiate a payment plan which was thought as reasonable by you. This is where professional help and tax problem help will come in.

For any business enterprise or an individual, taxes have become one of the most difficult areas. The world has changed drastically and indifferent accounting just cannot pass. Consequently, thousands of business owners across Canada find themselves right in the middle of heavy tax problems leading to tax liabilities and they seek out tax problem help in Toronto and many other cities in Canada.

An individual facing tax problems may have reached that stage because of not being aware of the possible problems. By seeking tax problem help in Toronto or other cities, he or she could begin to avoid those problems and resolve them so that operation is possible in a tax worry free world.

People tend to ignore the communications they receive from the CRA collection centres. This is because they may be scared of the results that are linked with the kinds of tax problems they may have or that they require more time to come up with the finances to pay off their tax debts. Not taking tax problem help may result in a collection action from the CRA. If you feel that there is a tax problem, then it is advisable that you seek representation and tax problem help as early as possible.

The routine kinds of collection action that you may seek tax problem help in Toronto or many other Canadian cities could be handling demand letters from the CRA, financial disclosure requests, CRA garnishment to your wages and bank accounts that could get frozen. There may be additional action such as garnishment notices that may be sent to the financial institutions that you deal with along with liens on your property.

So, if you land into trouble when resolving a tax debt problem with the CRA, you need to seek out tax problem help in Toronto or other Canadian cities. When you seek professional tax help, you may buy time with the CRA collection practices. If your problem is pegged to coming forward with a payment schedule or a plan, you may take tax problem help.

Accessing CRA Tax Audit Help in Toronto

When you receive CRA’s audit notice, the first thing you should do is to stay calm and try to have a good assessment of the situation at hand. If you have nothing to hide and have submitted your tax returns in an impeccable manner. Chances are, you do not have a problem. Just contact the CRA auditor and present your cases yourself.

However, for most other not so fortunate taxpayers, tax audit notice is like a stressful alarm that is set off no stop. It can cause worry, fear, anxiety, sleepless nights, etc. For those people, it is better to get professional CRA tax audit help in Toronto. Besides, the CRA auditors do not just call on anyone, they must have done some home works about your tax returns before picking on you.

To find the right tax professionals with your CRA tax audit help in Toronto, you need to search for those professionals who provide tax audit solutions help with a cost effective method of preparing CRA tax audit help in Toronto your books or records for the purpose of audit. Those tax professionals need to provide in Toronto that is tax audit proof and can fend off the toughest CRA tax auditors. These professionals will help with  representing you and dealing with the tax auditor.

We integrate accounting, tax, auditing and negotiation skills and take them to an expert level in the process of CRA tax audit help in Toronto. This combination of skills and expertise can really help you to control the tax damage to the minimum. Over the years, we have done just that many times for many clients and they are gracious for our great works.

An audit is designed to interpret, summarize and  present  the complicated business and financially related issues in a style that can be easily understood and supported properly as part of  CRA tax audit help in Toronto. The audit support will involve an analysis and assessment of the supporting evidence. It also involves the development of the computerized applications to help analyze and present financial evidence. As proactive professionals, we have developed proprietary program just to make the tax audit process painless and effective.

The most important part of the tax audit works is to ensure that the challenges posed by the CRA auditors can be rebutted with hard cold factual evidence that is accepted even in court system. Many taxpayers who decided to take on the tax audit projects on their own ending up seriously defeated and suffer major damage. It has been proven again and again, an unfavorably concluded CRA tax audit costs taxpayer much more than the fees being charged by tax professionals. So work with tax professional who will do the service through a collection of documents and important reports for you so that it is helpful in assistance of drawing a favorable tax audit conclusion. Such type of CRA tax audit help in Toronto is the ultimate goal of taxpayers under audits.

 

 

How the CRA Collections System works?

How the CRA Collections System works?

Since 1st August, 2005, the Canada Revenue Agency (CRA) has been given the responsibility of the cra collections of tax debts which was previously being handles by the Human Resources and Social Development Canada (HRSDC). CRA collection has the accountability for tax debts that are due to HRSDC through student loans, employment insurance, old age security, employment programs and Canada Pension Plan.

When the tax assessment or a reassessment is not paid, the balances which are unpaid are drawn from the relevant accounting system and these balances turn into collection accounts. There is a distinct accounting system for each line of revenue. The lines of revenue are corporate tax, personal income tax, Goods and Services Tax (GST) and salary deductions by all employers.

CRA Collections Agency

CRA Collections agency has to recover the entire balance of tax debts or make arrangements through individual payment plans from defaulters to recover the tax debt within a specified period of time. Recourse to legal action is taken when the defaulters are not able to arrange the filing of their tax returns. The kind of legal actions that can apply include certification of the debt in federal courts, garnishing of wages and accounts receivables, placing a lien on the assets of the taxpayer, setting off the tax debt against other government payments and seizing the assets of the taxpayer.

CRA Collections Agency can also take the tax defaulters and debtors to court in order to collect the debt which has not been paid. The procedures used by CRA Collections agencies to collect the outstanding tax debt amounts could be a combination of both automated and manual intervention. The CRA collection procedures may involve sending computer-generated letters, making reminder telephone calls, organizing field visits by the agents and sending legal notices.

The CRA collection activities take place through the Revenue Enforcement Management Information Tracking System (REMITS). This is done through a national collection call centre in the capital city of Ottawa and at eight other locations that organize collection for personal tax and Goods & Services Tax. The mode of collection will be determined by CRA collection authorities depending on the complexity as well as the size of an account.

REMITS of CRA collections arranges letters to all the tax debtors and takes care of specified accounts for which prior arrangements have been made. The call centre of CRA collection is responsible for outbound calls principally to those tax debtors whose outstanding amounts are below a specified dollar limit. The call centre is equipped with a telephone calling system which enables it to dial out to taxpayers automatically. The national pools make these outbound calls not considering any specific geographic boundaries for both individual tax and the Goods & Services Tax below a specified dollar limit.

CRA collection pools also conduct restricted enforcement actions such as garnishing the wages or accounts receivables of the taxpayers. The Tax Service Offices handle the more complicated accounts and conduct a range of legal enforcement like the seizing of assets or placement of liens on the properties of the tax defaulters.

An Overview of a CRA Bank Freeze

Once a tax debt is established, the CRA can take legal action and certify that debt in federal courts. This will be done after several requests by phone and in writing to the taxpayer. If there is no tax payment plan proposed by the taxpayer, it will empower the CRA to attack your assets as lien against your tax debts. The seizing of your assets may begin with a CRA bank freeze.

When you open a bank account in Canada, you are asked to furnish a Social Insurance Number, confirming that you are a resident of Canada. This number is used as a database which the CRA taps into to determine the details of your bank and your accounts. The CRA also keeps this data through any cheques you may have sent to the agency towards tax payments in the past. People also sign up for reasons of tax refund deposits or social benefit payments. There are various ways that the Agency can use to find out methods of your bank details and affect a CRA bank freeze.

Once your tax arrears have been certified by the CRA, they have the full power to the funds you hold in your bank accounts. CRA sends a Third Party Requirement to Pay (RTP) letter to your assigned bank. Once the bank gets this letter, they have to surrender the money to the CRA as a requirement for the sum as indicated in the letter. Your bank account is free for you to use once the required amount is sent to the CRA by your bank and the CRA bank freeze is released.

If the balance in your bank account is less than the sum demanded in the letter, the bank has to forward the entire sum in the account as on the date it receives the RTP. All deposits made to your account after this date will be forwarded also to the CRA until the sum demanded is paid in full.

If the CRA is not aware of any other bank account of yours, that particular bank account will not be affected by the CRA bank freeze. If your bank account happens to be a joint account where another person is also operating at the same time, you still face a CRA bank freeze for that account and the bank will be forced to honour the demand as per the RTP. It is, therefore, not a good idea to have a joint cheque account in a bank for any mortgage or insurance deductions when you feel that there may be a risk of a CRA bank freeze.

The CRA is empowered to affect a CRA bank freeze only to those bank accounts that are pertaining to you. It cannot freeze the bank accounts of your spouse or any other relations. The use of a credit card that has been issued by your bank does not get affected by the CRA bank freeze because the card is actually issued on behalf of Visa, MasterCard or American Express. A bank account RTP is limited only to that bank account. In very rare cases where there is a huge amount of tax funds as default, there is a possibility that the CRA bank freeze may also spread to other credit lines of yours.

Taxpayer Relief in Canada

Taxpayer relief  was set up in Canada to allow for the National Revenue Minister to extend relief to the taxpayers from interest charges or penalties in certain situations. These kinds of situations are deemed to prevent individual or business corporations from fulfilling their tax obligations. The special conditions for qualifying for taxpayer relief are extra-ordinary circumstances, other circumstances,  or proven inability  to pay their taxes on account of financial hardship.

Taxpayer relief  will distinguish between waiving or cancelling any penalties and interest charges. Cancellation refers to an interest charge or a penalty which is assessed and the relief may be granted in part or in full by the CRA. Waiver refers to an interest amount or a penalty charge that has not been assessed yet or charged for which relief may be provided in part or in full by the CRA.

Taxpayer relief applies to an individual, employer, corporation, partnership, organisation, trust, or estate as well as to Goods & Services Tax and Harmonised Sales Tax registrant and claimant. The interest charges or the penalties may be cancelled or waived in part or in whole when a taxpayer can prove that the inability to pay is as a result of circumstances beyond his or her control.

Extraordinary circumstances that prevent a taxpayer from filing his or her tax returns may include conditions like man-made or natural disasters like a fire or a flood, civil disturbances or service disruptions. They may also be due to a serious accident or health impairment. Conditions of emotional stress may also qualify such as acute mental distress resulting after a death in the taxpayer’s immediate family. In all these conditions, taxpayer relief will apply.

Some actions by the CRA may also help qualify for a taxpayer relief. The CRA may waive or cancel interest and penalties if they result mainly from CRA actions such as a processing delay which results in taxpayers not getting informed about the tax dues within a specified reasonable time. The actions may also include errors in CRA notices which may lead the taxpayers to file returns on such incorrect notices.

The CRA will grant taxpayer relief by accepting circumstances in which the inability to pay the taxes is confirmed by the taxpayers. Collection of taxes could be suspended temporarily by the CRA as a result of an inability by the taxpayer who has lost employment and is currently going through financial hardship. In such cases, accumulated interest may be waived because of a prolonged case of the taxpayer’s inability to file tax returns due to financial hardship. The financial difficulties may arise out of necessities like food and medical expenses in the absence of a job. It may also be due to other expenses like conveyance and shelter.

Taxpayer relief  is available to all people living in Canada who have been charged interest penalties. The Relief Group does not maintain any inventory for collections and reviews each case on its submission merit without being influenced from the collections diary of the tax collector who has been assigned to a particular case.

All Taxpayers in Canada Need Reliable a Tax Accountant

When the tax deadlines loom every year, Canadians are busy looking for a tax accountant in order to help reduce their tax load. Certain legislative changes in the past few years have allowed a specialized tax accountant to be more involved with CRA tax troubles. Knowledge and expertise of a specialized tax accountant comes in handy when there is a dispute with the CRA concerning tax assessment.

tax accountant is bound by a code of ethics in his or her profession. Constrained by law to disclose confidential information regarding a client, the tax accountant will not disclose clients information to any third party without written consent from clients.

Canadians require the services of a tax accountant when the CRA starts to challenge them with taxes problems. It is not easy to fight your own battles when it comes to negotiation and settlement of taxes. If you run a small business operation, the services of a good tax accountant will be invaluable. He or she will be able to help you find a way through the labyrinth of tax rules and provide the financial guidance that you require to manage your small business operations. A reliable accounting firm will not only handle audits and settlement of taxes for you but it will also keep you apprised of all the latest changes or developments in tax laws.

How do you go about finding a reliable tax accountant?

All business entrepreneurs can begin by asking their business associates about good accounting firms. It is crucial that you select a tax accountant who is familiar with your business requirements and your tax situation. For example, if your business is software or internet related, then you will have to seek accounting firms who are familiar with software skills and fluent in the language of e-commerce. If you are an exporting firm, then the accountants have to be conversant with all export laws and strategies.

It is not easy to be conversant with all laws pertaining to the filing of your taxes, even in a self reporting system of taxes. A good Tax accountant will be able to help in performing due diligence and in the correct filing of taxes. CRA cannot be given the excuse about ignorance of laws for not filing the taxes or filing them incorrectly.

CRA expects all taxpayers to be aware of the tax filing deadlines so that they can file on time. The accounting firm will be able to prepare and take care of prompt filing. A tax accountant will also keep a taxpayer informed about several credits that are available to the individuals. These credits can be claimed on the T1 Personal Income Tax Returns Forms. The credits help in the reduction of the final tax figure that is due to the CRA. There is a tendency among taxpayers to under claim some Tax Credits that are most challenged by the CRA as some accountants may not be asking the right questions and thus the chance of being denied the tax credits by the CRA increases.

Dealing with CRA Tax Problem

When the taxes cannot be paid on time and the returns cannot be filed, people have to be prepared to face a certain problem – the CRA tax problem. The lives of many Canadians are riddled with all kinds of tax problems. A high number of taxpayers are going bankrupt in Canada as a result of the scale of their tax problems. The excessive costs of interest charges and penalties are of a high magnitude that people are finding it difficult to bear.

CRA will do their utmost in recovering the tax dues that are owed to them. As a taxpayer, you have to be aware of what actions you have to take to handle a CRA tax problem and the steps you have to take to reduce the penalties and interest costs. The expert advice that is given by all experienced tax representatives and tax accountants is that the best way of handling a CRA tax problem is not to sleep on it. It is not at all wise to procrastinate when you deal with CRA.

When you seek professional help to tackle a CRA tax problem, you will be aided by a group of tax experts who will be working on your tax case as technical consultants and accomplished negotiators. Most tax accounting firms construct your financial records forensically so that they could be ready for an audit. They prepare themselves for all questions that could be asked in a typical tax court.

To prepare yourself for a possible CRA tax problem, you have to get your tax accountants to work closely with tax representatives for all matters pertaining to the Income Tax Act. A tax representative is well versed in both fields. A tax representative, therefore, becomes a unique kind of accountant so that you are allowed to be represented in Informal Procedure tax court proceedings.

Most tax accounting firms and representatives have to be covered by the rules of their respective professional regulatory bodies. They will prepare the necessary accounting records to set up your tax position concerning the CRA tax problem. They also make sure that the CRA is following the Taxpayers’ Bill of Rights. This is possible when they work on a direct basis with the staff of the CRA in case it goes overboard in its dealings with the taxpayer.

If you do not take professional help, you will not have any protection if you have tax returns which are not filed or income which has not been declared. When taxes are not filed, the CRA tax problem can still be sorted out by correcting your tax affairs voluntarily. There is a possibility that you will not be prosecuted or penalized heavily if you make a valid voluntary disclosure before any action is taken by CRA. The worst damage could be the payment of the tax amount along with the interest charges as penalties could be waived when you take timely and voluntary disclosure action.

CRA tax problem could be alleviated through the policies taken out by CRA itself where they have promoted voluntary acquiescence with the tax laws through tax amnesty programs. This is an encouragement to all taxpayers, both individuals and corporations, to report or voluntarily disclose any previous income or Goods & Service Taxes which have not been reported.

Responsibilities of a Tax Representative

tax representative has to cover for his client as a tax consultant, accountant, and an expert witness; all rolled into one. An authorized tax representative has to protect the interests of his or her clients. The representative has to agree that there will be no information disclosed concerning a client to a third party and also will not disclose any information that is provided to him or her by the CRA to anyone else in the absence of the taxpayer’s consent.

The tax representative has to make sure about the privacy of all the transactions that are conducted on behalf of a client or a taxpayer. All the documents have to be disposed of properly so that the confidentiality of a taxpayer is protected. The representative has to comply with all applicable legislative provisions like the Income Tax Act or the Goods & Services Tax Act and the Excise Tax Act. It has to be remembered that the CRA has the right to revoke the privileges of an authorized tax representative if he or she fails to comply with the terms and conditions governed under the contract of negotiation between the CRA and the taxpayer.

The tax representative has a responsibility of providing accurate information to CRA. There is a penalty if false information is provided intentionally under subsections 239(1) of the Income Tax Act.

When selecting a tax representative, you require someone who is specialized in tax resolution as tax dealing is a very broad topic. A specialist as a tax representative could be a good option based on any tax situation. If any tax activities involve some element that can be described as tax avoidance and the representative happens to be a specialist who is conversant with all CRA procedures, it would help the taxpayer a great deal.

Tax accounting firms assign a tax representative who is a licensed accountant as well as a tax specialist. The chances of facing an audit by the CRA will reduce if your representative is a tax specialist and a licensed accountant who can handle the toughest tax returns. Even if there is an audit by the CRA, the tax representative will be in a position to explain how the numbers have been arrived at on the returns.

The track record of a tax representative is of high importance. The credentials of a tax consultancy firm have to be high. An interesting standpoint with these tax consultancy firms is that they can be aggressive in their dealings with the CRA as they do not have the fear or the risk of losing their licence. If the consultants deal regularly with CRA, the taxpayer should not have any hesitation in placing full trust in their capabilities.

The tax representative can act as an expert witness also and defend a taxpayer in General Procedures in tax courts. The function of a tax representative as an expert witness is to help the court by providing an independent opinion about tax matters within his or her expertise. The evidence given by the expert witness when called to testify is an independent testimony and cannot be influenced by the CRA.

CRA Garnishment Toronto

What is garnishment?

Garnishment is a legal process by which a creditor can reach a third party to receive what the debtor owes him. If someone in Toronto fails to pay the money he owes, the creditor can go to a court for garnishment order against the debtor.  They can legally seize debtor’s money in his bank account, his salary or even other money he own in order to repay the debts.

Does a Toronto creditor always require court order?

The Toronto creditor does not require a court order if the debtor is in assignment of wages to credit union; or if the debtor owes unpaid taxes to the Canada Revenue Agency or CRA. The Canada Revenue Agency may directly notify debtor’s employer and may ask for immediate starting of CRA garnishment Toronto.

What does wage levy mean?

The wage levy is an enforcement action that is initiated by the CRA against someone for the purpose of unpaid taxes. It is just like the wage CRA garnishment Toronto.

What happens if there is a wage levy or wage garnishment?

If there is a CRA garnishment Toronto or a wage levy the employer will receive a garnishment order to withhold the specified amount from the wages of debtor.

In Toronto, what is the maximum amount for garnishment by a creditor?

The maximum amount for CRA garnishment Toronto is 50% of debtor’s gross monthly wages. However, if CRA puts a bank levy in addition to a wage garnishment, it can sometimes amount to 100% because the remaining 50% deposited in bank accounts will be taken away by the CRA.

What are the exceptions from CRA garnishment Toronto?

The social assistance and employment insurance cannot be garnished in the event of the CRA garnishment Toronto.

What is the process of garnishment?

A creditor has to apply to a court for garnishment. He will have to get the judgment order from court validating the debts and then will have to get the enforcement order for garnishment. He can also hire companies that will investigate debtor’s income and public documents for any property ownership. If the debtor has sufficient funds the creditor may initiate the CRA garnishment Toronto.

How can I stop CRA from garnishing my wages or seizing my bank account?

Anyone can have financial issues that may leave him unable to pay his taxes within the required period of time. You can always contact us to seek reliable and professional advice. We will guide you in the best possible way and will negotiate on your behalf with the CRA. We can get you such a payment plan that is in accordance to your capabilities. We can settle lower monthly payment plans for you with a little or no interest charges. You can always rely on us to stay protected against the CRA garnishment Toronto.

Filing Canadian Corporation Income Tax to CRA

Who is Liable to File the Corporation Income Tax?

All Canadian corporations, whether they are non-profit organizations or inactive corporations, are required to file T2 returns. It is obligatory for these Canadian corporations to file the corporation income tax returns every tax year whether there is any tax payable or not by a corporation.

Determining the Tax Year of a Corporation

The tax year of a corporation is also called the fiscal period that is 371 days or 53 weeks. The tax year cannot exceed the defined time frame. It is very important to determine the tax year of a corporation. The tax year of a corporation can be declared on the first T2 return of the corporation after its incorporation. You must make sure that you attach the financial statement for the corresponding tax year. At the time of filing the first corporation income tax return, the date of incorporation will be your tax year start date and for all subsequent returns your new tax year will start right after the end of your current tax year.  You choose the fiscal year end for your business when you setup the corporation.

T2 Return Filing Period of Your Corporation

All corporations are required to file their return no later than the six months after the ending of their tax years each time. If the tax year of a corporation ends at the month’s last day, you should file your corporation income tax return by the last day of six months after your tax year’s ending. If your tax year ends on any other day of the month and not the last day of the month, you should file a T2 return by the same day six months after the ending of your tax year.  If a corporation has profits, its T2 payment will be due two to three months after the ending of its fiscal year.

For example if Dec 31st is the last day of a corporation’s tax year, the following June 30th will be the due date for its return filing. The due date for filing the return for a corporation with tax year ending at September 23 will be March 23. You should always file your corporation income tax return within the required period of time to save yourself from facing any inconvenience or penalty.

Filing T2 Return and Reporting

All of the corporations for which the tax year end after 2009 and have the gross revenue of over $1 million are required to file their T2 returns online. In the case of non-compliance by the corporation for which the tax year ends after 2011, it will be subject to penalty. A corporation will have to file its tax return with CRA in order to report its corporation income tax. You will have to use your business numbers to file the provincial corporation taxes with the federal income tax return of the corporation. All of the corporations are liable to file their returns each of their tax year whether there is tax payable or not.

Reliable Corporation Income Tax Services

Although there are various options available for the corporations to file their own returns, when it comes to filing the return it is better to let the professionals handle it. The corporation income tax return of Canada is extremely complicated and can take a lot of your precious time if you do not have the required knowledge and experience. The slightest oversight or mistake in the return can cause serious issues.

Experienced tax accountants with proper knowledge and experience will make sure that the tax payable stays as low as possible. In addition, the tax accountants will make sure of accurate tax calculations and on time filing of return; they will also guide you through proper tax deductibles. Finally, in case of tax audits, experienced tax accountants can really make a difference in the final audit results.

In order to stay secure and to avoid any inconvenience or a penalty, you should hire an experienced and certified tax accounting firm. Tax 911 Now is a reliable tax accounting firm in Canada that can make sure that you pay the accurate taxes at the right time and with no problems with your accounts or corporation income tax liabilities.  Call 1-877-918-2991 today for your initial free consultation.

Dealing With A Bank Freeze by Canada Revenue Agency

 

When taxpayers have tax debts owing to the Canada Revenue Agency (or CRA for short) the CRA collection agents will begin to pursue legal collection action to recover the tax debts. One method that the CRA collection agents like to use to collect debt is by freezing a bank account commonly known as bank freeze.

 

Unexpected Bank Freeze

A frozen bank account can be extremely shocking and can cause tremendous financial stress. Many people feel frustrated when they find out that the bank has frozen all of the funds in their bank accounts. In general, however, bank freeze is a legal action aim for collection of tax debts. Taxpayers usually get pre-warning about the tax owing and potential legal enforcement actions: first you will be notified in writing that a tax debt is owed;  then you will be sent another letter demanding payment of the tax debts;  finally, a “Requirement to Pay” letter is issued to your bank, demanding the bank to freeze your bank accounts.  Legally, the bank must freeze the bank account as instructed to be in compliance.

Damage of Bank Freeze

Once the CRA put on a bank freeze, your mortgage will for sure default and you will not be able to take money out even to buy groceries.  You may have to open new bank accounts with another bank. In general, once the CRA has frozen a bank account. The credibility or trust you built over years will be compromised. The banks become cautious in dealing with you. After all, the CRA is one of the most powerful agencies in the country. Most banks will stop renew mortgages or offering credit and may even close your line of credits if you have them. Tax debts to CRA are the worst kind of debts banks want to get involved.  Sometime, people with tax debts problem do take the path of filing for bankruptcy when facing the pressure of CRA legal actions.

 

Prevention of A Bank Freeze

If you have a large tax debt and have received tax debts notice from CRA asking for payment and your bank account has not yet been frozen by CRA, it is advantageous to act before the bank freeze occurs. Take action now doesn’t mean you need to come up with all the funds to pay off the tax debt. Acting now to get professional help to deal with your tax problem before the tax debts problems get out of control. Even if your bank account has been frozen you still have a chance to get them released.  Getting a bank account unfrozen is difficult but can be achieved through various tax venues.

 

Call Tax 911 Now if you have just received the notice that you own taxes. We can start the process of negotiating an affordable tax payment plan. Or if your bank account has been frozen and you do not have the funds to pay, contact us. We can negotiate with CRA collection agent to release your bank freeze and coming up with a plan to deal with your tax debt.  Contact Tax 911 Now at 1-877-918-2991 Today!

Tax Lawyer or Tax Attorney: Do You Need One?

Tax Lawyer or Tax Attorney: Do You Need One?

Many people, once in tax troubles, assume that in order to solve their tax problems with Canada Revenue Agency, they will need to engage a tax lawyer or tax attorney. However, what they do not know is that specialized Tax consultants are equipped with tax knowledge and experiences to deal with majority of your tax issues. Most times there is no need to hire a tax lawyer or tax attorney.

 

To start with, for example, if you have unfiled back taxes, you do not need tax lawyer or tax attorney to file your taxes. In fact, lawyers are not trained and recognized by CRA as tax filing specialists.

The procedure for filing back taxes is straightforward. For other kinds of tax problems beyond the tax filings, you may want to contact a specialized tax consultant who specialize in tax problems resolution services.

Specialized tax consultant will go over with you your tax situation in full. This review will allow the tax accountant to assess your situation. Most spcialized tax consultants do not charge for this initial consultation, and many ask you to bring CRA letter with you. After assessing your circumstances, the spcialized tax consultants will discuss your options. It is possible that a better alternative to a straight filing may be available to you.

 

Out of the most common tax problems or tax services, such as tax audit, unfair assessment, tax appeal, wage garnishment, bank freeze, unreported income, unfiled tax returns, tax debts owing, voluntary disclosure, tax payer relief, tax payment plan, etc. Tax 911 Now’s specialized tax consultants have the expertise and experiences to resolve them all effectively.

 

When You Do Need a Tax Lawyer or a Tax Attorney?

Some tax lawyers dramatized the advantage of “client privilege” claiming if CRA demands information from professional service providers, only tax lawyers or tax attorney can protect clients’ information. The statistics do not support the claim, however, just do the research online. The chance of CRA forcing accountants to disclose information without clients’ permission is close to the winning of a lottery. CRA, to be direct and more effective, prefers to deal with taxpayers directly.

 

There are times, one or two out of a hundred, clients do need tax lawyers or tax attorney because their cases are so severe and they need to go to tax court. Tax lawyer or tax attorney is required to represent the clients in court in such a case as per the legal requirement.  In such case, we do have our partner tax lawyers working with us to better help you.

 

For the rest of clients, their issues are still within CRA’s administrative system and thus do not require legal representation. In fact, Canadian Income Tax Acts dictate that, within the CRA’s administrative system, the same policies or rules apply to everyone. It does not get more flexible because of the involvement of a tax lawyer or tax attorney. As a matter of fact, Tax 911 Now’s specialized tax consultant have been working with clients who got better results from us rather than their former tax lawyers.

 

What To Look For In Specialized Tax Consultants

 

What should you look for in a specialized tax consultant ? It’s important to choose a firm that understands people, and an experienced tax consultant that recognizes the need to help you find effective solutions to your tax problems. Good tax consultant should be able to see past your present problematic situation, create a sound strategy to combat your tax problems then act to help you clean up your tax problems with Canada Revenue Agency.

 

Don’t hesitate any longer, contact a specialized tax consultant today, and make a fresh start. Freedom from tax problems can give you a brand new start to life! Call Tax 911 Now at 1-877-918-2991 Today!

 

Understanding Tax Evasion vs. Tax Avoidance

Understanding Tax evasion vs. Tax Avoidance

Tax Evasion is illegal; it is the evasion of taxes by taxpayers including individuals and businesses such as corporations. Under tax evasion taxpayers intentionally misrepresent the true income or tax owing status to the tax authorities to reduce their tax liability. Such act may include false tax filing, such as report less income, profits or gains than actual or inflating expenses or deductions.  The extent of tax evasion is measured in the amount of unreported income, which is the difference between the reported income and the actual income.

Tax avoidance, on the other hand, is not illegal. It is when taxpayers use tax laws to reduce tax liability. Both tax evasion and avoidance are tax noncompliance in different degree, as they cover activities that intend to play with the tax system, although such classification of tax avoidance is disputable, given that avoidance is not illegal.

Canada Revenue Agency CRA Response to Tax Evasion

The degree of tax evasion depends on several factors, such as the amount of income an individual or a corporation has. Normally, when the amounts involved are minimal, the efforts to evade income tax decline. The extent of evasion also depends on the CRA’s tax administration effectiveness.

CRA has been improving its technology, procedure and staff training to combat tax evasion. CRA also adopted various means to reduce tax evasion and increase the level of tax enforcement. Tax auditors are required to identify tax evaders, collect the taxes interest and penalties and often those evaders become published on mass media or CRA website so they can become examples for their fellow Canadian taxpayers to comply with the tax rules.

 

Level of Tax Evasion and Punishment

Just like many other countries, Canadian tax authority considers tax evasion a crime, and the guilty party is liable to fines and/or imprisonment.  Dishonestly misreporting income in a Canadian tax return is not necessarily considered a crime. It is also a reality that the extent of evasion depends on the severity of punishment for evasion. As long as you have undeclared income you could face penalties or prosecution for tax evasion. The Canadian Income Tax Act Section 238 and 239 set out details on tax evasion and the penalties for tax evasion in Canada.

The offenders who are guilty under section 239 of the Income Tax Act will be subject to a fine of up to double the amount of the tax that was evaded and/or imprisonment for a term not exceeding two years.

Income tax evasion can lead to criminal charge and it is a serious act. It should be avoided at all costs. If you have been hiding for years from the CRA for unreported or under reported income, you may want to consider cleaning up your tax problems voluntarily. With experienced tax professionals’ help, your damage will be greatly reduced. The worst nightmare happens when after many years of hiding, all of sudden CRA starts investigation. You could lose everything overnight. Take risk free action immediately before it is too late. Contact Tax 911 Now, the experienced tax professionals for a private, confidential, free no obligation consultation! Call 1-877-918-2991 today!

Need CRA Tax Audit Help?

Running a business can be a life full of pressure. Customers have demands that need to be met, vendors need to be paid, and problems constantly arise that have to be solved quickly. With everything that goes on during the typical course of a day, it is no surprise that some details slip through the cracks. Unfortunately for many companies, these details often are related to their finances.

The overlooked items may start out small, but over time they compound until the business is faced with major accounting errors. The truly unfortunate part is they may never even realize it until an auditor starts to look through their books. Rather than face a hefty tax bill, use our experts at Tax 911 Now for all CRA tax audit help in Toronto. All businesses may feel they need tax relief of some kind or another, but for those backed into a corner by an impending audit, the feeling of being trapped is even more intense. That is why our professionals at Tax 911 Now are there night and day to give companies the relief they need by offering CRA tax audit help. 

 

Your own CRA tax audit help

The first and most immediate relief our clients experience is finally having representation. They no longer are forced to deal with CRA auditors themselves. At Tax 911 Now, our experts are some of the best in their field for negotiating CRA tax audit help in Toronto and appealing unfair findings. Unfortunately, CRA agents can sometimes exploit a company’s lack of tax knowledge to force it to pay bigger penalties. They even threaten criminal prosecution in some cases. With Tax 911 Now’s CRA tax audit help, these fears quickly fade away for our clients.

 

You Can Afford It

Once a settlement is reached, our professionals will make sure our clients have a monthly payment plan that fits easily within their budgets. Many of our clients are afraid to come to us because they think their taxes and fees are so substantial that they can never get out from underneath them. They wait until the CRA threatens to lean out their property or freeze their bank accounts. No tax issue is too small or too large to find relief.

 

You Do Not Have to Get Behind

For further information about Tax 911 Now or to have us start relieving your tax stress, call our professionals at 1-877-918-2991 or visit us at 129 Telson Road, Suite # 100, Markham, Ontario, L3R 1E4. Our experts will be happy to help and provide any CRA tax audit help necessary in Toronto and other cities in Canada. Remember it is never too late to rectify a bad tax situation. The dedication of our staff is second to none, and we will work tirelessly to find answers to any and all of our clients’ problems. Still feeling unsure? Take advantage of our free consultation to begin to find the CRA tax audit help your business needs. Do not let the fear of a tax audit cripple your company, call us today and find relief at 1-877-918-2991.

Need a Tax Amnesty Agent?

Need a tax amnesty agent? The perfect place for you to go is Tax 911 now if you are in the Toronto, York Region, Durham Region and more. We have a long history of helping clients resolve their tax problems. 

 

Tax Amnesty Agents

Find a tax agent to help you with tax amnesty to determine which option is best in your specific scenario. It is also known as tax pardon or VDP (Voluntary Disclosure Program). If you didn’t file your tax returns or under reported your income, a tax agent at Tax 911 Now is the answer.

If you have late filing tax debts and unreported income, it is essential you go to tax amnesty agent today to resolve your tax issues. They are extremely professional and highly-qualified in the tax industry. They completely understand the CRA and the Voluntary Disclosure as well. If you attempt to deal with it on your own, you have the potential of ruining your chances at tax amnesty.

 

Extensive History

Tax 911 Now has an extensive history with helping clients resolve their tax problems by filing voluntary disclosures. A major benefit associated with using Tax 911 Now for your tax amnesty agent is the fact that we handle all of the negotiating for you and will reach an excellent settlement. The CRA can be quite aggressive at times and once they contact you, you will lose the privilege of completing voluntary disclosures; therefore, it is essential you act in a timely manner.

Tax amnesty agents in Toronto at Tax 911 Now will be sure to guide you in through the tax process and eliminate the hassle of you having to deal with the CRA. We will orchestrate a strategy for your tax amnesty and take the stress off your shoulders. There is no doubt that Tax 911 Now’s agents are efficient in solving tax problems. We have the necessary training and knowledge in tax issues.

 

Free Consultation with one of the tax amnesty agents

You can get a free consultation with one of the tax amnesty agents at Tax 911 Now regarding tax amnesty and they will be sure to address all of your needs. Be sure to act quickly before it’s too late and the CRA takes action against you. They will analyze and go over all of your tax problems at the consultation and it will be up to you to decide what you wish to do. There isn’t any pressure involved.

It is evident that Tax 911 Now is the ideal place to go for a tax amnesty agent if you are in the Toronto, York, or Durham Region and other areas across Canada. Don’t worry about your under-reported income or tax penalties any longer, we are here to help you. The tax amnesty agents are very professional and dedicated to their clients. You are more than welcome to come to our location at 129 Telson Road, Suite 100, Markham, ON, L3R 1E4. You may also call us at 1-877-918-2991; feel free to address your tax troubles with us. We are understanding, compassionate people.

Need Tax Amnesty Agents to Help You with the CRA?

The Canada Revenue Agency (CRA) has a Voluntary Disclosures Program to assist taxpayers with disclosing information about prior tax affairs that need to be resolved. If you live in Toronto, the York Region or the Durham Region and you are delinquent due to known inaccuracies, incomplete information or a failure to submit your income taxes, Tax 911 Now will assist you in making disclosure to the CRA. The professional tax amnesty agents at Tax 911 Now can shelter you from late filing penalties and prosecution through the program. In some cases, Tax 911 Now may negotiate a reduction in interest on your behalf. 

 

Tax amnesty agents are the experts

In order to qualify for amnesty, a written submission that discloses your tax liability must be voluntarily provided to the CRA. Participation in the tax amnesty program is totally dependent upon your voluntary disclosure. As such, you must initiate disclosure before an enforcement action is levied against you. If you wait until an enforcement action has been initiated against you, your disclosure is no longer considered voluntary. Tax 911 Now will initiate your voluntary disclosure by providing the CRA with properly documented disclosure information and any necessary supporting documentation. Without proper documentation, your request for amnesty may be delayed or declined.

Toronto area Tax 911 Now tax amnesty agents are experts in getting you amnesty for your personal or business income taxes, GST/HST and charges due and owing under the Income Tax Act. Voluntary disclosure becomes effective on the day that Tax 911 Now amnesty agents contact the CRA on your behalf. A partial disclosure of information is sufficient to establish an effective disclosure date, but you may still be subject to penalties and prosecution for the undisclosed portion of your tax obligations if the undisclosed amount is considered to be substantial. There must be some agreement with the CRA regarding when the undisclosed information will be provided.

 

Contact tax amnesty agent now before it is too late.

If you are in the Toronto area or other areas across Canada, such as Calgary, Vancouver, etc. and have outstanding tax obligations, you need to contact Tax 911 Now and set up a time to speak with one of our dedicated tax amnesty agents before the government becomes aware of your tax delinquency. That is not to say that you will have no financial responsibility under tax amnesty. You will still be responsible to pay any outstanding taxes owed as well as any applicable interest assessed on the delinquent tax amount at the time of the disclosure. No late filing penalty will be assessed. What you will be given amnesty for is late filing penalties, civil penalties and prosecution. In some cases, a reduction in the assessed interest may be negotiated. The only exception is if it is voluntarily disclosed that you failed to file your return, as opposed to under-reporting income or misappropriating funds on a filed return, you will only be responsible to pay the tax amount owed for that filing.

 

Payment Plans

You should be prepared to pay your tax obligation, although decreased, in full immediately or request that your Tax 911 Now tax amnesty agent engage you in an affordable payment arrangement. Tax 911 Now agents are expert negotiators who will assess your finances and negotiate the most affordable payment schedule based on your financial situation. Scheduled payments may then be paid directly to the CRA.

If you are located in Toronto, the York Region, the Durham Region or other regions across Canada, call and talk to one of our dedicated and professional tax amnesty agents. Call Tax 911 Now team at 1-877-918-2991.

Five Income Tax Preparation Tips!

Each year tax season seems to come out of nowhere and we all scramble like mad to get our paperwork in order for our income tax preparation to be done by the Income Tax Accountant. What if it didn’t have to be that way, what if you were organized all along the way? With just a few simple tips you can be well prepared for tax time. You can make your accountant happy and file your income tax preparation with ease. You don’t have to think of everything, in fact you should be consulting the experts at Tax 911 Now. The tax qualified pros at Tax 911 Now serve the Toronto, York region Durham Region and more, helping worried tax payers meet the tax deadline. Let the experts at Tax 911 Now determine which deductions and tax credits are available to you, ensuring you get the best tax result. Claiming all of your deductions and using all of your available tax credits means you will get the biggest tax refund available to you. 

 

  1. Consult a tax professional: if you live in the greater Toronto area consult the pros at Tax 911 Now, let them help you get ready for your income tax preparation.
  2. Create a personalized checklist: Create a checklist of paperwork you need to take to your tax preparer, attach the checklist to a folder and check off the items as you put them in the folder.
  3. Keep tax papers in one place: Set aside a shelf or a drawer where you will keep all of your papers for income tax preparation purpose, that way come tax time you don’t have to look through your entire home or office.
  4. Categorize documents and receipts as you go: buy an expandable file folder and label the tabs, spend a few minutes each week filing your receipts away. This will save you hours or work at income tax preparation time!
  5. Make a list of questions for your Income Tax Accountant: When you think of a question or concern that you have make a note of it, that way when you are ready to come for your income tax preparation. 

 

Don’t let tax season get you down, be prepared for your tax return and get some professional help, Tax 911 Now offers solutions and immediate action to your tax concerns. Tax 911 Now specializes in tax resolution, no matter your situation, we can help. If you live in the greater Toronto area, York Region or Durham Region come for a visit with the tax professionals at Tax 911 Now. Our staff is professional and dedicated to help you with your income tax preparation. Call today, 1-877-918-2991 or come to our office located at 129 Telson Road, Suite # 100, Markham, Ontario, L3R 1E4

Quality Tax Return Help in Canada

We have met many taxpayers who have learned tax lessons the hard way. Taxpayers, who self-prepare tax returns, have a higher risk of making just one critical error on a tax return, to cause big tax problems in the future. 

Tax 911 Now handles a wide range of tax problems including unfiled tax returns. We listen to all tax concerns and devise strategies to ensure the taxpayers not to be in trouble with the Canadian government.

Tax Return Preparation Tips in Canada 

  1. Consults with an excellent tax consultant about your tax return, this will help ensure there will be no worries about having to deal with serious future tax problems. 
  2. Ask Tax 911 Now to be your authorized tax representative and the point of contact for Canada Reserve Agency in the event they have questions. The taxpayer does not normally have to contact the Canada Reserve Agency when a third party is authorized. 
  3. Ask your preparer if that are knowledgeable about interest charged and penalties possibly imposed on the taxpayer. This company may be able to obtain an approval under either the VDP or Taxpayer Relief programs of Canada. 
  4. Taxpayers should not file an amended tax return to correct an error. The Canada Reserve Agency requires taxpayers use a T1-Adjustment Request form. 
  5. Do not risk a penalty by filing taxes after April 30. 
  6. Taxpayer should not show extreme negligent by failing to report income taxes. The penalty for this could cause the taxpayer to pay up 50 percent of your taxes owed. 
  7. Self employed Canadian citizens need to file income taxes by June 15 or risk paying a large penalty. 
  8. If a taxpayer does not have the money to pay to the government they still need to file on time. 
  9. If the taxpayer does not have all their information by the due date. The forms still need to be submitted with the best estimated amount. 
  10. Do not stop paying tax arrears when money is owed on current tax returns. Our professionals can help to deal directly with CRA on your tax debts. 

Tax 911 Now are the expert in tax preparation

Remember, never hand over any financial or personal information to CRA before consulting Tax 911 Now.  Organize all tax related information and call for a tax appointment today at 1-877-918-2991. Stop in to speak with one of our seasoned tax professionals about a return or tax problem. We are located at 129 Telson Road, Suite #100, Markham, Ontario, L3R 1E4, and welcome a visit. We are your key to solving all tax concerns.