When you hire a tax lawyer Edmonton to help you deal with any tax related issues, you are attaining a big chunk of advantages to your favor. For instance, a tax lawyer has your interests guarded. By law, they are prohibited from sharing sensitive information exchanged between themselves and their client. This means that you have the safety of speaking freely to your tax lawyer about tax issues you might be having without fear of disclosure. A tax lawyer is on your team and is hired to represent you in Tax Court if it ever comes to that. Another big advantage is that these people are actually knowledgeable in the field, something that young taxpayers tend to be most ignorant in. A tax lawyer can help you understand all the tax related and legal requirements.
There are different options available regarding tax relief, depending on your personal financial situation. The best way to avoid getting yourself into a difficult financial situation regarding tax is to make sure that you always file your tax returns properly and on time. However, there are a number of circumstances that you can claim affected your ability to do this, in which case you might be given an extension.
The worst thing for you to do in a difficult financial situation is to ignore it and hope that it goes away. If you do this, then it is likely to become unmanageable, and then you may find that your only option is to file for bankruptcy. Although this offers a legal opportunity for a fresh start, it is a drastic measure that you should avoid at all costs. You will find yourself facing a lot of barriers in the future regarding business and credit rating, and these will be difficult to overcome.
CRA penalties and interest
One of the easiest things to do is to negotiate a payment plan with the Canada Revenue Agency (CRA). Now remember, their primary objective is to obtain the money you owe them. If you can offer them a payment plan that shows they will get their money without having to take drastic measures, they are likely to accept it. This way, you can budget your costs and make sure that you have enough money each month rather than having to get your hands on a large sum all at once.
Another option may be a consumer proposal, which will allow you to pay off your debts over a set period of time and at a fraction of the cost you owe. There are exceptional circumstances required to be able to claim this though, so the best thing for you to research all options available. However, when a consumer proposal is not available, Cawston & Associates can still help you. Please watch the following video for more information.
Canada Business Tax
If you run a business in Canada, you must be up-to-date with your income tax return. You must also be aware of how to file a Canadian income tax return. It will give you a lot of advantages of all sorts.
The tax fees that you need to pay are all reliant on the size of your business as well as the type. There are various types of business, they are the following:
- Partnership
- Sole proprietorship
Furthermore, you are required to be transparent about your income. So, you will need a form T2125 to submit on CRA. It is also known as Statement of Business.
This is the tool that you will use to have an income declaration. There are different things that you should take note too. Let us try to enumerate them below:
- For incorporated business: You will have to use a T2 corporate income tax return in reporting your income.
- For sole legal entity: You will need a T1 personal income tax return to complete your income report.
But be sure that you know the business expenses that fall into Canadian Income Tax.
Maximizing Income Tax Deductions
It is great if you will know how to maximize your tax deductions. It will give you a lot of benefits. Let us try to enumerate some of the techniques that you can use to maximize them.
- Be mindful of your receipts: This will allow you to view your expenses. They are crucial in knowing how much is your net sales on a particular year. It will all be detrimental in the computation of your tax
- Know your business travel expenses: It does not matter whether you’ve used public transportation or a private vehicle. Or you are traveling alone or with someone. You must list those expenses.
How about home-based businesses?
A lot of home-based businesses have opened because of the pandemic. But is it advantageous or not? Well, if you are one of the people who own a home-based business then you are lucky.
You’ll encounter the two most common business expenses which are the following:
- The maintenance of the house as you will use it most of the time while working
- Ownership of the property
Other Factors that May Constitute Tax Deductions
- Capital Cost Allowance (CCA)
- Scientific Research and Experimental Development
- Retirement Savings Plans on File
- Compensation to Workers
How to file a Canadian income tax?
Usually, an accountant will help you file that income tax return. From the preparation to the filing will be processed by them. However, some choose to do it on their own to save money. If you are one of them then Canada Revenue Agency has various options for you.
- Sending the T1 personal income tax return can be done electronically using NetFile
- With the use of mail or drop if off to the right CRA tax center
Conclusion
With the proper pieces of information, filing taxes is a very hassle-free task. It will make your business more reputable and as well make you a law-abiding citizen of Canada. It will make your business run smoothly. Also, you can avail of the reduction of income tax but be sure that you know the necessary actions to take. You can find a lot of trusted and certified tax consultants here in Edmonton to make things easier for you.
Edmonton Business Strategies
For business owners not focused on difficult tax issues marketing strategies should be at or near the top of your list. Not all businesses need to “go after” new potential clients but some markets have evolved where you need to solicit other businesses. CalgarySalesTeam.com is a Calgary lead generation, cold calling, and list building service provider. They offer excellent results with great rates. Visit their website and review their marketing material.