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Haven’t filed personal or small business (T1), corporate income tax (T2), or GST/HST returns in several years or more? Have you been contacted by or acted upon Canada Revenue Agency (CRA) including a Request to File or a Notional Assessment (of exaggerated estimated amounts owing just to get your attention)? Or do you want or need to become up to date with tax filings for various personal reasons? You may feel a sense of urgency or despair to catch up on unfiled previous years’ taxes. That’s ok, it taxes the mind too. You may be tempted or receive advice to
Business Tax, Late Tax Filing, Personal Income Tax, Tax Debt
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A common concern we receive from individuals who are late filing personal income taxes is how to get lost or misplaced tax slips from previous years (for example T4s, T5s, T3s, etc.). It can seem overwhelming to try to look for all the tax slips however it is actually very simple to receive them. Every time your employer or payer issues you a tax slip, a copy is sent to Canada Revenue Agency (CRA) which means you can simply request copies for past years from CRA by using the online My Account for individuals service or speaking to a CRA agents
Late Tax Filing, Personal Income Tax
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Eight Common Situations for Successful Allowable Business Investment Loss (ABIL) Claims: If you bought shares in or loaned money to a CCPC (Canadian Controlled Private Corporation) and the corporation became insolvent and did not pay you back or you sold the shares for less than you paid for them.   You invested directly in another person’s small business corporation (either as a shareholder, lender, partner, or joint venture participant) that failed outright or probably cannot repay the investment or loan in full when it becomes due.   You own or co-own a company (corporation) that is struggling financially or has
ABIL, Business Tax
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If you lost money investing or loaning money to a Small Business Corporation (including your own business) you may be able to recover some of that loss as a tax refund. Canadian tax laws are purposefully designed to reduce the risk of loss of investments or loans to small business corporations. This type of loss is called an Allowable Business Investment Loss (ABIL) which is a special type of capital loss. It is important to note that ABILs are deductible against all other incomes in certain applicable tax years. Provided Canada Revenue Agency (CRA) has the proper proof and documentation
ABIL, Business Tax, Tax Debt
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There are many probable consequences related to unfiled tax returns. CRA will assume you are evading payment of taxes. Financial affairs and personal situations can be surprisingly sensitive to the lack of current tax filing history. Here are some issues that you or your company may experience as a result of not having filed your tax returns:   Obtaining Credit. Financial institutions and many organizations that provide financial assistance almost always insist on the notice of assessment of corporate or personal tax returns to validate income for the purposes of debt repayment ability or qualification for program payments. If this
Late Tax Filing, Personal Income Tax, Tax Debt
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