Once again, another happy customer of Klassen Tax Services. My tax scenario being what it is given my home office, education, and travel expenses, Locke's expertise provides considerable value in identifying potential areas for savings. He's very fairly priced, and he's quick, too.
A++, will be back next year. And his logo is pretty sweet.
My logo is pretty sweet. Cant argue with that.
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Thanks Locke. Dude is fast and efficient, did 2 years worth of taxes for me and my wife and helped me out with some of the tricky stuff I thought I would have problems with.
Curious to hear what your opinion(s) is/are on the proposed changes to corporate taxation? Does this reduce the allure of incorporating in some situations?
Does it sound like these changes are a sure thing, or is it still just something being considered?
Curious to hear what your opinion(s) is/are on the proposed changes to corporate taxation? Does this reduce the allure of incorporating in some situations?
Does it sound like these changes are a sure thing, or is it still just something being considered?
Theres a few proposed changes, is there one specifically I can address for you?
Because yes, the entire idea of most of them is to disincentivize business owners to keep money within their companies, but it depends on the specifics.
'Income Sprinkling' has been something that has been targeted for a while now and Personal Service Business Classifications regulations have been in the plans for nearly a decade without much action.
__________________ The Beatings Shall Continue Until Morale Improves!
This Post Has Been Distilled for the Eradication of Seemingly Incurable Sadness.
If you are flammable and have legs, you are never blocking a Fire Exit. - Mitch Hedberg
I guess I'm just curious as to how it will impact decisions on incorporating vs. sole prop. I imagine it will still be a case-by-case thing, but to me, it seems like it makes incorporation less attractive.
I guess I'm just curious as to how it will impact decisions on incorporating vs. sole prop. I imagine it will still be a case-by-case thing, but to me, it seems like it makes incorporation less attractive.
As with all things Accounting: It Depends.
Overall for an average business, yes, it does appear that some of the incentives for being incorporated are being repealed if not removed entirely, especially with consideration of costs and the benefits of being able to smooth income.
Some industries are likely to be affected more than others and they really have to be evaluated on a case by case basis.
I think the thing that concerns me is that, typically with Tax Policies when they take something away in one area they tend to give something somewhere else, but in the past couple years both in Personal and Corporate Tax Policy it has been fairly one-sided.
__________________ The Beatings Shall Continue Until Morale Improves!
This Post Has Been Distilled for the Eradication of Seemingly Incurable Sadness.
If you are flammable and have legs, you are never blocking a Fire Exit. - Mitch Hedberg
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Its almost that time of year again and theres some things you should know as you're preparing your information and need advice or documents from CRA:
Quote:
The Canada Revenue Agency (CRA) requires all taxpayers to declare their income voluntarily and honestly. The sanctions for not doing so are serious for taxpayers. However, the Agency has an equal obligation to provide taxpayers with complete, accurate, clear, and timely information. The evidence is overwhelming: The CRA is falling down in the performance of its public mandate. The victims of its failure are low and middle-income taxpayers who cannot afford expensive professional advice and turn to the agency for their information.
The CRA processes about 30 million tax returns annually, and operates nine call centres to give individuals and businesses information about their taxes, credits, and benefits. The online services and telephone call centres are the primary ways for the public to obtain tax information. However, as the Auditor General’s Report to Parliament reveals, the CRA blocks more than half of the calls that it receives (about 29 million out of 53.5 million) from reaching either a tax agent or the automated self-service system. Instead, callers receive either a busy signal, or a message to go to a website, or call back later.
Last year, the CRA answered only 36 per cent of the calls that it received. The remaining 64 per cent of calls were either blocked, or directed to an automated self-service system. By blocking taxpayer calls, the CRA could report that it connected with about 90 per cent of calls from the public. This is the tantamount to a misrepresentation in a tax return. Indeed, if the CRA blocked even more calls from taxpayers, it could improve its statistical performance rating to 100 per cent.
Even more alarming, when the CRA did respond to taxpayer calls, it gave taxpayers the wrong answer almost 30 per cent of the time. Taxpayers who acted on the erroneous information would file incorrect tax returns, and consequently would face tax assessments, interest charges, and, possibly, penalties. Under the law, a taxpayer is responsible for any inaccuracies in his or her tax return, even if the error is due to incorrect information provided by CRA agents. Thus, the burden of fighting the assessment is on the taxpayer, who must pay the costs of litigation, interest charges, penalties.
Far from abiding by the law, the CRA is derelict in the performance of its public duties to taxpayers, and endangers the integrity and reputation of Canada’s tax system. Taxpayers have a duty to file their returns honestly, and with integrity. However, they have a corresponding right to timely and accurate information from the CRA in the administration of the tax system.
the biggest thing to do is sign up for My Account online since you can do pretty much everything you need on it. It's going to be expanded further in February so there will hopefully be no reason to phone CRA.
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the biggest thing to do is sign up for My Account online since you can do pretty much everything you need on it. It's going to be expanded further in February so there will hopefully be no reason to phone CRA.
This is excellent advice and in conjunction to this I ask all of my clients to Authorize me to Represent them so worst case scenario I can access the information that I need to properly prepare the tax return.
Because phoning CRA was a poor proposition to begin with and its steadily gotten worse and worse.
__________________ The Beatings Shall Continue Until Morale Improves!
This Post Has Been Distilled for the Eradication of Seemingly Incurable Sadness.
If you are flammable and have legs, you are never blocking a Fire Exit. - Mitch Hedberg
- Starting February 26, 2018, Canadians can start filing their income tax and benefit returns online.
- March 1, 2018, is the deadline for contributing to a Registered Retired Savings Plan.
- Canadians should have received most of the tax slips, such as T4s, and receipts needed to file a tax return by March.
- Most Canadians income tax and benefit returns are due on April 30, 2018.
Self-employed individuals have until June 15, 2018 to file their return.
- From February 26 to April 30, 2018, the CRA will be offering extended evening and weekend hours for Individual Tax Enquiries. Over 3,000 telephone agents will be available Monday to Friday (except holidays) from 9 am to 9 pm (local time) weekdays, and from 9 am to 5 pm (local time) on Saturdays (except Easter weekend) to serve as many people as possible. Our automated service will remain available 24 hours a day, 7 days a week.
- New this year, individuals can obtain both their account balance and the amount of the last payment made to the CRA through the use of an automated, self-serve Interactive Voice Response system without needing to speak to an agent.
- Express NOA allows those using certified tax software as well as tax preparers to print a notice of assessment right after filing.
- Canadians can now make in-person payments at any Canada Post outlet using cash or debit card.
I prefer to make my payments through my trusted Nigerian 3rd party. To each their own.
I personally like how they just appropriated the services of another Federal Government Agency, likely with the same due foresight that CRA are renowned for...
Is the Post Office going to be open until midnight on April 30th?
Are workers at Canada Post and the corner Drug Store able to securely handle people's SIN numbers?
CRA: "In hindsight these are questions we likely should have asked in advance...."
Anyways, despite my inherent cynicism (15 years in the Game will do that) some of these pilot programs show progress and promise, but I usually advise my clients not to sign up for them the first time out, then we see how they work and then decide from there.
__________________ The Beatings Shall Continue Until Morale Improves!
This Post Has Been Distilled for the Eradication of Seemingly Incurable Sadness.
If you are flammable and have legs, you are never blocking a Fire Exit. - Mitch Hedberg
Great thread. I'll be filing my own taxes for the first time this year and appreciate any info/advice people in the know have to offer.
I think taxes (among other things) are complex. I leave it to the professionals. The money they charge is worth it (to me) as it is guaranteed, and if the government decides to question my documents, my account is there to defend. Plus, I would never be able to figure out all the workarounds that a professional tax guy can, as they literally deal with this stuff every day.
Serious question. Do you have new found knowledge that is better than a what professional accountant can do for you?
Unless you are some kind of math god, I would hire a professional.