Are you working for CRA or for me?
The Canadian tax system is self-assessing. TaxWatch is absolutely only working for you. However, part of the advantage of TaxWatch is that it is familiar with how CRA often views your situation; it is an important insight to have. All tax professionals are very careful to ensure the accuracy and
Do I need to file my past tax returns?
By law, you are only required to file a return if you have taxable income and/or you receive a Request or Requirement to File from CRA. However, even if you do not have taxable income, you may want to file in order to receive certain credits you may be entitled to. Each tax year should be considered on its own merits. Keep in mind that CRA does not know your personal tax status and therefore, unless you file, you can still receive inquiries from CRA, particularly if you have a spouse or common-law partner who files. THere are also other potential consequences of not filing discussed in our blog post here.
I haven't filed in a long time, how far back do I need to file?
The answer will depend on whether or not you have received a Request or Requirement to File from CRA as well as your personal tax situation which can be best determined by speaking with a tax professional specializing in late tax filing such as TaxWatch Canada. In our experience, the best approach is to draft returns for each year (typically no more than 8 years back) which facilitates the decision regarding what years will need to actually be filed. CRA can always ask for older returns if needed, however, in our experience, this has not been a common situation.
What if I'm missing old tax slips and/or information?
As part of our service, we will assist you to determine what is required and how to best obtain the information. Read more on this topic in our blog post here.
What if I cannot afford to pay all that past tax liability?
There are collection protocols within CRA that will extend payment terms based on your financial situation. CRA may request details of your financial situation in order to evaluate how much you should reasonably afford to be able to pay. Each situation is unique. Payment commitments should never be more than what you really believe you can afford and will pay. CRA wants you to keep your current tax filings and liability up to date as well. One thing you should never do is make commitments that you already know you cannot keep.
What is the most important step to take when deciding what to do about late tax returns or claiming unreported income?
The first and most important step is to determine your estimated tax liability and discuss possible penalties and interest that may be applied as well. You can still adopt filing positions to reduce your tax liability and remain compliant with the tax law, subject to having to defend your filing position. There are many factors to consider that affect your tax position. Some examples are: the determination of intention to earn income; treatment of expenditures and the timing and nature of funds received; allocations to different business partners or spouses; the correct treatment of funds paid by a corporation to its shareholders; matching expenditures to income; choice of year ends; timing of capital cost allowance (depreciation); and the timing of the claiming of losses to name just a few. Many factors contribute to legitimate tax minimization, which you are allowed to do.
How affordable are your fees?
Our professional fees are certainly not high end and are reasonable because we only do what we both agree is worthwhile. Fees are based on a step-by-step process of service that allows you to manage the service arrangements and fee costs and know the exact fee for each accomplished step. The first step is to determine your tax liability and perhaps engage legal representation. That may involve bookkeeping, GST implications, a review of your financial history and discussions with legal counsel. That is one fixed fee, payable in advance. Proceeding to file returns and to deal with particularly involved situations or complex problems would be a separate fee. Filing of notices of objection or answering CRA questionnaires is a separate fee. Tax payment negotiations may involve another separate fee. In all instances, the fees are fixed unless additional information comes to light that we were not advised of. Payment terms for fees can be arranged. For those who are corporations or are self-employed, the fees are tax-deductible. Fees for preparation and completion of notices of objection and tax court appeals are also tax deductible.
What is a Corporation?
Why incorporate? There are many benefits of incorporation; here are just some of the highlights:
Substantial tax savings and tax postponements (see Tax Benefits below). Corporations usually save and postpone tens of thousands of dollars of tax per year.
*Exceptions: Trust funds (GST/HST, payroll), Noncompliance penalties (not filing tax returns).
Assuming proper setup and administration has been performed (part of the unique Turnkey Incorporation Service provided by TaxWatch Canada LLP), the tax benefits can be:
Why Can’t I Just Incorporate my Own Business?
You can. There are tax compliance risks if asset (such as existing capital assets and contracts which have value) transfers create capital gains personally. Documentation for transfers of assets must be complete (a simple process), and many other subtleties exist (such as the need for a complete minute book).
Why should I Choose TaxWatch Canada's Incorporation Service?
While many businesses offering incorporation services pride themselves on offering a quick & easy solution, TaxWatch Canada LLP’s service, albeit an extended process, is comprehensive and provides exceptional value to your bottom line. Our tax perspective provides maximum tax savings to increase wealth and take advantage of the many benefits of incorporation.
What is the Cost for the Turn Key Incorporation Service?
Your complimentary initial review will include an immediate quote only after we ensure we can help you and a new Corporation is going to produce substantial positive outcomes. Historically, upfront fees (which include out of pocket payments to institutions of around $600 or more) are from $1,800.00 for a new business and increase as the complexity of transferring existing business assets gets more involved. But that is where the benefits really shine. Many times other professionals - your choice who to use - are engaged to prepare agreements, provide 2nd opinions or valuations.
How do I get started?
Just contact us. Ask plenty of questions.