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Reminder-Monday, June 15, 2015, is the Deadline for Self-Employed Individuals to File Their 2014 Income Tax Return

Deadline for Self-Employed Individuals to File Their 2014 Income Tax Return

Deadline for Self-Employed Individuals to File Their 2014 Income Tax Return

Reminder-Monday, June 15, 2015, is the Deadline for Self-Employed Individuals to File Their 2014 Income Tax Return

We would like to remind self-employed individuals and their spouses that this year’s filing deadline is midnight on Monday June 15, 2015.  If you had an outstanding balance for 2014, it would have had to be paid on or before April 30, 2015. However, due to a CRA glitch the deadline to pay 2014 outstanding taxes was extended to May 5, 2015 this year.

If you don’t file your return, your GST/HST credit (including any related provincial credit), Canada child tax benefit payments (including related provincial or territorial payments), and old age security benefit payments may be delayed.

Contact our office if you still need help completing your 2014 self-employed business tax returns.

CRA Audit of Moving Expenses

 

CRA Audits Moving Expenses

CRA Audits Moving Expenses

CRA audit of moving expenses

The Canada Revenue Agency (CRA) allows taxpayers to deduct moving expenses if they move closer to work or school. To qualify, the new residence should be at least 40 kilometers closer to work or school (measured by the shortest usual public route).

In the case of Trudy Hauser (Taxpayer) vs. Her Majesty The Queen (The Crown), the CRA audited the moving expenses of the taxpayer.  The main argument became how each of the parties were measuring the distance between the old home and the new place of work. The Crown had measured the distance using an urban route, which was the shortest distance. The Taxpayer had measured the distance using a rural route, which was the fastest route. The Taxpayer had indicated that the urban route was inefficient because of the construction on the route.

Despite the Taxpayers testimony and evidence The Tax Court sided with the Canada Revenue Agency and concluded that the urban route is the most appropriate route to measure the distance between the new place of work and the old home.

Read more about Trudy Hauser  case – CRA Audit of Moving Expenses below:

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Audit & Appeal

Our team is dedicated to assist you in all your CRA appeals. We make sure that your company’s tax audit is handled smoothly and efficiently. We can assist you with the tax audit process starting from the information gathering stage to negotiation with the tax authorities. We can also help in negotiating payments and even apply for interest or penalty relief.

Brampton Tax Accountants

Tax Accountant

Tax Accountant

Cheema & Assocaite – Your Local Brampton Tax Accountants 

Cheema & Associate CPA Professional Corporation is an accounting firm located in Brampton, Ontario at the main intersection of Kennedy Rd S and Clarence St. Our office address is 143 Clarence st. Suite 5, Brampton ON L6W 1T2.

We provide income tax services to all types of clients from Brampton. We have been serving the Brampton market for over three years. Tax has evolved over the years with strict regulations imposed by the Canada Revenue Agency. We can professionally prepare your tax returns while maximizing your refund by designing and catering unique tax planning strategies. Our professionals have experience in handling wide rage of unique tax returns. Contact us for your 2014 personal income tax returns.

Our Brampton tax accountants are dedicated in assisting you in all your income tax needs.

Personal Income Tax
Personal tax has evolved over the years with strict regulations imposed by the Canada Revenue Agency. Your local Brampton tax accountants can professionally prepare your tax return while maximizing your refund by designing and catering unique tax planning strategies. Our professionals have experience in handling wide rage of unique tax returns.

Corporate Tax
Our uniquely designed tax programs can assist you with complying with the complicated provisions of the Income Tax Act (ITA) while minimizing tax liabilities. We can structure your business to maximize profitability and minimize tax risks.Contact us for your 2014 corporate tax returns.

Audit & Appeal
Our team is dedicated to assist you in all your CRA appeals. We make sure that your company’s tax audit is handled smoothly and efficiently. We can assist you with the tax audit process – starting from the information gathering stage to negotiation with the tax authorities. We can also help in negotiating payments and even apply for interest or penalty relief.

CRA uses Facebook to audit

Why did the CRA audit me?

Why did the CRA audit me?

CRA uses Facebook to audit

The CRA only provides a generic description on how they select files for audit. According to the CRA website, they select files based several different conditions, such as “the potential for errors in tax returns or indications of non-compliance with tax obligations.”

Techniques used by the Canada Revenue Agency (CRA) are never clearly disclosed. Over the years the CRA has adapted and developed unconventional audit techniques in hopes of catching tax evaders. One of these techniques is called Indirect Verification of Income, where the CRA tries to match a taxpayer’s lifestyle to their reported income. In order to do this the CRA has relied on sources such as Facebook and other social media outlets to build cases against taxpayers.

With falling tax revenues and increasing deficits governments will continue to use unconventional audit techniques if it results in more taxes being collected.

How to setup a business in Ontario?

What type of structure is right for you?

How to setup a business in Ontario?

Setting up a business can be an overwhelming task with a lot to comprehend. It all starts with a dream and a vision, but how do you turn that dream into reality. The dream of becoming your own boss and having the freedom to make your own decisions can be a complicated one at the beginning. Once you have determined on the actual business and its inner workings, you will have to move on to the next step of executing that business. This is where a lot of people get stuck and don’t really know where to go next.

In this article I will explore and shed light on several different business structures available in Ontario. I will also explain how to be in compliance with Canada Revenue Agency (CRA) tax obligations.

The three most common structures are Sole proprietorship, Partnership, and Incorporation.

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CRA – Business Tax Reminder’s App

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The App

When the Canada Revenue Agency (CRA) announced they were going to introduce a mobile app. I was very excited as it would allow me to access information on the go. I had expected they would add in an accountant component allowing me to access client records on the go (much like they did with My Business Account). However, the CRA introduced an app which works much like the calendar I use in Outlook.

The Mobile App allows users to add in their different CRA accounts and pop-up reminders of payments and due dates.

The Future of the APP

I would like to see the CRA connect the app to My Business Account allowing business owners to see information on the go. Read more

CRA’s Offshore Tax Informant Program

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The Program

Over the past year the Canada Revenue Agency (CRA) has implemented an ‘Offshore Tax Informant Program’ in hopes of fight international tax evasion. The CRA promises to compensate individuals who help catch tax evaders.

Program Success 

The Financial Post has reported  that this program has generated over 1,000 calls and has led to over 100 active cases. The success of this program banks on the CRA actually putting forth resources to investigate these cases which can take number of years.

Why Now?

Programs like this have been around for number of years,  the Internal Revenue Agency (IRS)  in the United States has had a similar programs since 2006. Other agencies such as the Securities and Exchange Commission (SEC) have similar programs as well. It was just a matter of time before the CRA followed suit.

With falling tax revenues and increasing deficits the governments are scrambling to find a solution. These program have been launched in hopes of  ensuring public confidence in the tax system and to increase tax revenues.

At the beginning of April 2013 the International Consortium of Investigative Journalists (ICIJ) released a report which indicated the issue of world tax evasion and included names of 450 Canadians. In the months following Gail Shea the National Revenue Minister committed $30 Million to find tax evaders. The report by ICIJ help shed the light on how much money was actually being stored offshore. Other governments around the world are also taking note of this problem.

In the Future

However despite having knowledge of the individuals that hold off shore bank accounts the CRA has yet to prosecute anyone. The investigations will be time consuming and complex, it could be years before we see any cases in court.

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