Category Archives: Tax Accountant Canada

A Tax Accountant Can Cut Your Bills

Even though everyone knows that taxes have to be paid, it can still be a nasty shock when the bill comes in. The most sensible thing to do will be to set aside a little money each week and hopefully by the time the bill has to be paid there will be most if not all of it ready to be paid. Unfortunately, life often gets in the way and the money is spent on other things, and for this reason it will be a good idea to have a tax accountant.

When you get your tax bill there is an expectation that you will pay it off quickly and therefore not owe anything to the government.  The reality is that there will be times when that cannot happen and you will start to incur penalties and charges. Interest will be added to the bill the longer that it is not paid and this can mean you soon have a substantial commitment that cannot be met. A tax accountant will be able to help and show you that there is light at the end of the tunnel.

The auditors working within the CRA are under instruction to get the money that is owed and there will be times that without the help of a tax accountant, you could agree to pay more than you have to and be in financial straits when there is an alternative. It is important that you sort out your finances and again this is where a tax accountant can help. If they can show you where you are paying too much tax then the bill will be lower, there is more chance that you will be able to pay and there is less chance of there being an penalties incurred.

It has been calculated that there are people who are paying up to three times more in penalties than they are actually paying in tax. That cannot be right and it is going to make it much more difficult to get out of the situation and just get back to paying the normal amount each year. A tax accountant will be able to help you and often can get the amount owed reduced. You can be sure that they will never judge you or push you to pay more than you can afford.

If you decide to deal with a tax accountant, do some homeworks before you do. Firstly, find out if they are prepared to give you a free consultation. You don’t want to pay someone to tell you that they can’t or won’t help you. Next, read up on them and see if there are any comments left by previous users. People love to give an opinion and if they feel let down they are bound to write about it. If you find a tax accountant that does not have any bad reviews, then you should be fine to pass your accounts over to them. The cost of the work they do for you will be swallowed up by the savings they could arrange.

Any tax accountant that tells you they can make all your problems disappear is probably best to be avoided. If they tell you that they will do their best for you, have experience in the area that you are struggling with, and have a lot of success due to the knowledge and experience they have, then you will be safe trusting them.

Why You Should Hire a Tax Accountant

When it comes to hiring a tax accountant. Hiring an inexperienced accountant with no expertise and knowledge specifically in taxes will not in any ways help you rather at points can harm your overall situation alright.

Filing your tax returns every year is an obligation on every citizen and every year it is the same question asked by numerous individuals on whether they should hire professional help to file their returns? Will hiring a tax accountant or tax consultant help in any way? The answer is a definite yes. First things first every tax situation is different from the other and in order to avail all amnesties applicable on your tax situation, a tax accountant will work to your benefit as he or she is a professional of the field and has far more experience of dealing with taxes and many of us do.

The best way to hire a tax accountant for yourself is to look for certified professionals who are experienced in the tax area as they are the ones who on a daily basis deal with several tax cases and situations and know best what will work out for you. There are often times when people suffer consequences owing to incomplete or improper filing of returns which is why a tax accountant should be chosen for the job to avoid any severe actions on behalf of the CRA.

Also when it comes to paying your taxes and availing every amnesty that you are eligible for, hiring a tax accountant will help especially in regard that new tax laws are governed almost every year and not knowing them and how they will work in your favor is a big loss on your part. Only a tax expert who on a daily basis caters to cases and situation is well aware of what to do in what circumstances. Also since these professionals are always dealing with the CRA they are more informed on how CRA would react to a certain stimuli by the debtor and what a tax payer should do in case CRA objects o him in any way.

You can look for reputed services companies that offer professional tax accountant services and consult friends and family members to find the best tax accountant for yourself.  You can however also check on the reputation of the accountant you are choosing for your tax matters and ensure that the selected candidate does not have any complaints registered against him or her.

Besides individuals, small and large businesses too benefit a lot when it comes to hiring a Canadian tax accountant as not only can they manage employee taxes and payrolls but can also help in making the most of available money while getting the best of the tax breaks for you. You can always opt to file your returns yourself; however any mistake will ultimately take you to the doors of a tax accountant, so why not make a wise decision on time.

Summary

 

Hiring services of a tax accountant helps in moving away from several taxes related issues that can arise later due to a mistake or having no knowledge of a certain tax related issue. Tax accountant can help in saving you precious money, time and hassle that you will spend with the CRA in absence of a tax accountant.

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.