Haven’t paid your taxes? Time to call your Tax Accountant and get back your peace of mind.

29 May, 2014

Not paying your taxes is a very serious issue.  Interest penalties, legal costs, and then being under the scrutiny of the Government for years to come should be incentive enough to get your taxes completed.  Reality is, many business people are so wrapped up in the day to day of running the business, they forget and time passes by quickly.  Suddenly you realize it is past the date and you have not filed your information.  You make a note to get it done but another month passes and you still have not gotten to it. Those most susceptible to letting taxes lag from one year to the next include part-time workers and the self-employed.
Ensuring you put money aside for your tax liability is a challenge for most people.  Spending day-to-day on the business, personal expenses, and other liabilities can be a distraction to you being able to put the necessary money aside.  However, there are ways to file for past years and repay back taxes. Some options even offer ways to forgo penalties and prosecution.
T1A Tax Adjustment
To amend a previous tax year, you can file the necessary forms to request an adjustment.  There are two forms you can file Form T1-ADJ and a T1 Adjustment Request. The CRA will also accept a signed letter outlining the details of your situation along with supporting documents, your social insurance number, and a contact number along with your address.
This is a solution if you are planning  to amend the current year and no more than the two previous years.  The CRA does not have to accept an amendment, but with the proper documentation and thoroughness it will increase the likelihood they will process it.
Voluntary Disclosure Program
If you haven’t filed tax returns for previous years, and you know you’ll have taxes to pay, you may have another alternative. You can simply complete the appropriate returns and file.  There are four criteria that you must meet to ensure you are eligible to use the voluntary disclosure program.

  • Your disclosure must be voluntary.
  • One of your returns must be at least one year overdue.
  • Your disclosure must be complete and all forms and other tax requirements have been met, such as HST.
  • The disclosure must be related to return that is subject to a potential penalty.

While there a couple of ways to manage the missed filings, you should start with a professional tax accountant who can ensure you have all the necessary claims, forms, and can manage the situation with the CRA.  A qualified tax accountant can help minimize your tax liability, while working to ensure that the CRA is satisfied with your submissions.  It goes a long way to making the resolution to your situation more manageable, all while you can continue managing your day-to-day life and business.  Call us today at (289) 290-3322 to get your tax situation cleared up and give you peace of mind.

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