Paying tax on any income earned is a legal requirement for individuals and businesses. There can be severe consequences for those who avoid paying their tax dues. There are proper taxation authorities for every country that deal with the payment and collection of taxes. For instance, the Canada Revenue Agency is responsible for dealing with the taxation matters of the individuals and corporations in Canada. Therefore, it can be nerve-wracking for anyone to receive an audit notice from the CRA. No matter how carefully the returns are prepared, it’s difficult to imagine that an audit letter from CRA is anything but bad news.

What does a CRA tax audit entail?

Basically, a CRA tax audit involves a detailed investigation of the tax obligations of a party, which can be a business, individual or any organization. The purpose of the audit is to discover if the party has intentionally attempted to evade payment of taxes and whether it owes additional taxes or not. It is not very difficult to neglect making payments or mentioning all income on the federal tax return because some taxes are self-reported. A CRA tax audit is performed on businesses and individuals that are suspected of such negligence and for determining whether this ignorance is deliberate or an honest mistake.

Get professional CRA tax audit help

When an audit notice is received, individuals and businesses usually seek CRA tax audit help from experienced tax consultants. The consultants should be aware of the auditing process and what it involves. A team of skilled fact-finders and tax accountants is sent to help taxpayers that’s suspect of evading or underpaying taxes and they have the responsibility of sifting through the accounts and records of the party to determine the amount of tax that’s due. The auditors have complete knowledge of the different tax codes due to which it’s easy for them to figure out any discrepancies in the tax owed and paid. The final owed amount is usually determined by the auditor and this means that the party might have to pay more.

CRA tax audit targets

The CRA tax audit notice is typically received by those businesses and individuals that are suspected by the government for evading tax. They most likely owe additional taxes to the government. It’s usually large businesses and wealthy individuals that are suspected of paying less than owed taxes and they might need tax audit help for avoiding being subject to this process. However, the CRA tax audit can also be performed on random parties as the government doesn’t need any proof for carrying it out. There is no guarantee that a tax audit can be avoided completely.

When people seek CRA tax audit help, they will be told that some steps can be taken for avoiding a full-blown audit. Sometimes audits can also be resolved by mail and all the taxpayers need to do is to provide the tax auditors with the proper documents. A complete audit can be avoided in the future by reporting all the income earned on the proper forms and filing tax returns on time. Any cash payments and tips that have been received should also be reported even when there are no official documents. This CRA tax audit help from experienced tax consultants can prevent future auditing procedures for the business or individual.

You cannot afford to delay; call for help as soon as you receive the CRA tax audit notice. Do not speak to the CRA tax auditor, to reduce the chance that the information you volunteer will be used against you. Call Tax SOS right away for a free consultation at 1-877-982-9767.

Handling self-assessment forms could be a source of severe headache for many people. How can you go about finding a professional tax accountant who can fill them out for you besides giving you precious tips on how you can save some money for yourself and your business? All kinds of individuals and businesses as taxpayers can take advantage of hiring the services of a tax accountant. There are a few steps that you can take to protect your business and yourself when finding the right tax accountant to file your tax returns.

A little time can be taken out to concentrate on your tax filing needs. What is it that you would like your tax accountant to help you with? The common examples could be explained when you find the process of preparing your tax assessment forms stressful and annoying. You may be confused that the figures that you have filled out may or may not be accurate. When your tax situation becomes a little complicated, you may benefit from a little expert advice as well as tips. The bottom line is that you would like your tax accountant to show you how to pay as little tax as you possibly can. You can then plan yourself accordingly as per the advice of that tax accountant.

For most businesses, it is a smart choice to get a professional tax accountant to help them in the preparation of their tax returns. Every person, as an individual or a business manager, cannot be a tax expert and committing errors while filing returns may prove to be a costly affair.

For the filing of returns, the tax accountant should be given access to all the tax records that are at hand so that he or she can organize the information. This information will involve all the business expenses and revenue for the reporting year. It will also involve asset additions, operational expenses, last year’s Notice of Assessment and a copy of the income tax returns that were filed in the previous year.

Other bits of information that your tax accountant may need are commissions paid out, investment income, medical receipts, charitable donations and information on child care expenses.

A tax accountant gets paid generally by the hour and not on a lump sum contract basis. It will cost you extra if you make their job harder. It is in your best interests to facilitate their work. This can be done by summarizing your records wherever you can manage that. You can categorize invoices, checks and expense vouchers and accumulate the totals. It is better to prepare the organizing and tallying part of the accounts yourself.

You are probably not aware that you can save money on the fees that you pay to your tax accountant. Getting a tax accountant to file your income tax returns is not going to cost you as much as you may be worried about, for it can be treated as a genuine business expense. You have the right to claim the cost of the fees of your tax accountant as a tax deduction.

Getting good tax accountants’ help is just a phone call away. Call Tax SOS at 877-982-9767 for your free consultation.

When people receive a notice of tax assessment, they are advised to scrutinize the amount of income that is assessed along with deductions and allowances. They could either do it themselves or have these figures checked by tax accountants. The basis of the assessment on the Assessor’s Note has to be understood. There are cases when the allowances and the deductions are disallowed and the reasons for such disallowance have to be thoroughly understood. If there are disagreements with the assessment, a tax objection may be lodged and a CRA tax appeal may be filed if you are not happy with the response to your application.

How to start a tax objection

The initial step that has to be taken when resolving a dispute with CRA (Canada Revenue Agency) is to file a Notice of Objection. A tax accountant will apprise you of the procedure and give general information concerning the process of filing a tax objection. There are different guidelines for individuals, corporations and certain provincial regions.

If action is not taken to challenge the notice of assessment, then the entire tax amount has to be paid to the CRA. In order to make up for the burden of proof which is laid on the shoulders of taxpayers, CRA has provided a division for internal appeals that allows the taxpayers an opportunity to go through a fair review without the hassles of getting involved in a court of law.

The deadlines of tax objection

Filing a tax objection does not cost anything. The procedure of filing may vary based on the type of assessment the objection is being made on. There are stringent deadlines that have to be met in terms of filing. If these deadlines are not met, then the taxes have to be paid in full unless taxpayers have solid ground to request for extension.

When there is a disagreement with the tax assessment, the first thing that has to be done is to approach the CRA to ascertain the discrepancies. There is a possibility of informally explaining the reasons for the tax objection on account of errors in the assessment and they can be resolved. If the CRA fails to make the necessary corrections before the deadline for filing an objection, a basic Notice of Objection can be filed to get the dispute noted on the file, explaining the whole chronology of events.

When you gather the information and have the documents that you need to back up your tax objection, you can go ahead and file a complete Objection and add further information to the elementary notice you had filed earlier. All evidence and reasons have to be furnished to support your case.

The outcome of tax objections

The CRA response may be expected any time within a year from the date of filing your tax objection. It is wiser to decide to pay your taxes in full in such a case so that there are no further debits of interest charges on your tax account while the tax objection is under process. When you get a response to your objection application and you are still in disagreement with their response, you have the right to file a CRA tax appeal to tax court.

If you have unfair assessment and need to consider tax objection, contact Tax SOS, the tax objection veteran in the tax industry, for help at 1-877-982-9767 and get your free complimentary consultation.

It’s not a pleasant situation and one you personally, as well as professionally, should try to avoid at all costs, because no matter how fervently you wish it would go away, unfiled tax returns will not be ignored by the CRA. This makes perfect sense as your government agencies are funded through tax dollars and need these monies to survive, as well as provide services to other individuals who do pay their tax bills.

These are just some of the scenarios that can occur with an unfiled tax return, blatantly incorrect or late tax return:

• Lending agencies such as banks normally insist upon financial paperwork like a tax return to illustrate your monetary situation. If you have unfiled tax returns or even a tax problem, this could adversely affect your credit and severely reduce your ability to receive a loan. Even if you can receive the money, it’s highly possible you will be paying an exorbitant interest rate that will never be reduced.
• Subsidies from the government like stipends for elderly residents or children will not be disbursed if you have unfiled or late tax returns. That means if your family needs these services they will not be available to them.
• Even if you only have a late tax return, the CRA will naturally assume you do not intend to pay your taxes. They have no intention of providing tax relief for you or your business.
• When the CRA unearths you have even one late return, they will issue paperwork called a notional tax assessment which will persist as a binding tax liability and could be more than triple, once all fees are tabulated, what you actually earn each year.
• An unfiled or late tax return may injure a work colleague, business associate, long-term partner, or husband or wife. The CRA has no qualms about assigning liability for your tax owing or linking it to people close to you financially. They want their money in some fashion even if it means ruining someone else’s financial stability.
• Each year you do not pay taxes or have a late tax return the CRA will institute noncompliance fees, fines, and interest accrued on your tax bill. The CRA will double your bill every five years for each year you have not filed and this undoubtedly will cripple you financially for the rest of your life.
• If you think shifting your assets and funds to another party such as your husband or wife, or a business partner, will help, think again. This will place the person or persons in just as bad of a financial situation with the CRA as you are. Also, the CRA will require you to submit data on all that you have transferred, if you do not submit it, this is considered to be a criminal act and the CRA can move forward with these charges and prosecute you. They also have the same ability to apply the same treatment to the party or parties who remain in control of your financial assets.

The Canada Revenue Agency collects various types of taxes. These taxes are income tax, GST/HST, and payroll taxes. The jurisdiction of  CRA collection  does not include provincial taxes such as gas taxes, property, or municipal taxes. CRA has contractual arrangements with certain provinces to help in collecting their provincial program outstanding dues. An example of such an arrangement would be when CRA will use refunds on personal income tax as adjustments against outstanding taxes to benefits programs of selected provinces at the request of that particular province.

CRA collection’s responsibilities

CRA collection  is responsible for most individual income tax brackets in Canada with the exception of those residing in the Province of Quebec and Alberta. CRA administers the tax collection procedures from the majority of provincial corporations in the country.

CRA collection  is also responsible for the Goods and Services Tax in all the provinces with the exception of Quebec as Revenue Quebec manages the collection on its own. It also collects the Sales Tax and the GST on behalf of CRA. When it was introduced in 1991, the GST was fixed at 7% as an add-on to the value of goods and services, but it was reduced to 5% in 2008.

In a few provinces, the Goods and Services Tax has been transformed into the Harmonized Sales Tax. These provinces are British Columbia, Newfoundland, Labrador, Nova Scotia, and Ontario. The HST blends both the GST and the provincial sales tax into one category. HST is administered by CRA.

The expectations of CRA collection

CRA collection  practices make it clear to the taxpayers that they have to honor the payment of taxes upon receipt of the Notice of Assessment by the thirtieth of April of a calendar year for the previous year’s assessment.  CRA collection  authorities expect all taxpayers to file their income tax returns and settle any outstanding balances that have been carried forward from the previous years.

To ensure fair practices and equitable allowance to all the taxpayers under the self-assessment system, CRA collection uses stringent measures to make sure that the taxes are paid on time. CRA collection tends to take a firm but effective approach to collect all outstanding accounts from the taxpayers who have not paid their taxes. Every reasonable effort is put in to enforce the collection deadlines.

The Procedure of CRA collection

In situations where the outstanding balances are not cleared within a month’s period from the date when the Notice of Assessment has been issued, a provision is made to issue a second notice request for the owed balance by means of telephone contact. If the balance still remains outstanding and there is no arrangement or discussion about payment of the tax dues, then a final notice is issued to the collector. If there is no sign of the payment coming in within ninety days from the date of the Notice of Assessment, then legal action is pursued by the CRA collection.

The taxpayer’s income will be garnished. This means that the CRA collection agencies may intercept funds receivable by the concerned taxpayer and in certain cases, the sheriff of the province may be directed to seize and liquidate the personal assets of the defaulters. The final CRA collection will include the interest charges on the balances that have remained unpaid.

If you have tax debt issues and have a CRA collection agent going after you, delay no further, ask experienced tax consultants in Tax SOS to help at 1-877-982-9767.

When tax payers are seeking answers to the problem of tax bills which are outstanding, CRA (Canada Revenue Agency) allows them to make deals detailing a schedule of the tax payment plan. The CRA will always be willing to accept a reasonable monthly installment tax payment plan.

In the absence of a tax payment plan, there is a possibility that the taxpayers will have to be ready to face CRA garnishments on their wages. There are many Canadians who have their wages garnished every year by CRA. These garnishments take place when a tax is owed and there is no submission of a tax payment plan to the CRA. The wage garnishments will also occur if CRA gets your tax situation assessed through a notional assessment and provides evidence that the tax will not be paid within the financial year.

The CRA does not need to get a court order to execute garnishments on your wages unlike other creditors. Salary garnishments are directives to the employer to hand over a certain percentage of the taxpayer’s wages to the CRA. This can be done without the need for informing the taxpayer. The percentage limit is generally about a maximum of fifty per cent of the wages. This could have an impact also on other sources of income such as rental or sub-contractor’s earnings. The additional sources could be garnished in full amounts.

This is not a healthy situation for tax defaulters as apart from causing further financial hardship, it can result in embarrassment in both personal and professional lives. When your employer is served CRA garnishments, it is humiliating and reduces your reliability even in the eyes of your employer.

In Canada, CRA garnishes wages by sending your employer a Requirement to Pay. For federally regulated employers, the Canada Labour Code prohibits dismissing or disciplining an employee because their wages are being garnished; for other employers, provincial employment standards rules apply.

The tax defaulters could take the help of tax consultants to get a reduction in the CRA garnishments and sometimes they may be successful in getting them removed totally. The complete solution lies in coming up with a tax payment plan and not in bits of evasion. It is wiser for the defaulter to get in touch with the tax consultants as they will be able to negotiate with the CRA on your behalf and work out a tax payment plan that may be reasonable and fair and one that is within your financial capabilities.

You may be able to negotiate with the CRA on a personal basis, but a good tax consultant will be able to contribute out of his vast experiences in working out negotiations with the CRA agents. The tax consultants are invariably successful in working out a tax payment plan that includes arrangements of monthly payments of lower value. They may be able to work such arrangements out with lower interest charges and also without any additional penalties.

Call the tax consultant team at Tax SOS right away if you have received notice from CRA about potential legal collection actions at 1-877-982-9767.

The process of a CRA tax appeal can be considered if taxpayers believe that the Notices of (Re)assessment they receive are not fair. The best way to go about it when you have to reduce the amount of tax owed by you to the government is by submitting a valid reason for your disagreement with the assessment.

The Notice of Objection is the first step in the process of a CRA tax appeal. A court of law will presume that the assessment sent out by CRA to the taxpayers is correct. In order to appeal, time is of the essence. Action has to be taken in time and through proper channels to ensure that your stand on the amount you have to pay is accepted.

To begin with, you can explain in the Notice of Objection everything that you consider as discrepancies in the Notice of Assessment. All facts have to be set in front of the CRA with full evidence to support your case. The Objection can be filed by means of a simple letter to your concerned tax centre jurisdiction with an indication of the reasons for disagreement with the assessment.

The drafting of the Notice of Objection before the CRA tax appeal is important as it sets up your case. The burden is on you to prove that there is an error on the part of the CRA. There should be sufficient documentary evidence to prove that and valid arguments in the Notice of Objection you draft. The assistance that you can get from seasoned tax consultants will be instrumental. The best kind of objection notices will be those which use a statement of the Income Tax Act of the CRA with evidence to show that the tax assessment has been done on a flawed basis. Once the notice of objection is strong, it may help convince the CRA agents to reverse their position.

Care has to be taken to file a CRA tax appeal within ninety days of the Notice of Assessment. Filing the CRA tax appeal within the deadline will save you from the dangers of the possibility of being forced to pay inaccurate amounts in taxes.

The common arguments that become a base for the CRA tax appeal are deductions or disallowed expenses. Many taxpayers confine themselves to the advice that is given to them by the agents within the CRA. It is wiser to be familiar with the time limits and procedures so that you can file all notices and the CRA tax appeal correctly and responsibly.

Finally, at the end of the appeal, the CRA tax appeal agents will issue letters concerning their decisions about audits as well as objections which have been submitted by the taxpayers. If taxpayers are happy with the results, two parties will settle. If taxpayers are still not convinced of the result, then tax court is the next level of appeal, which most taxpayers will not proceed to due to the time and financial limitation on their parts.

If you are overwhelmed by CRA’s unfair assessment and need to file tax appeal, working with experienced tax appeal specialists will increase your probability of winning. Contact Tax SOS at 1-877-982-9767 for free consultation.

An individual or a business organization cannot afford to think in terms of evading payment of taxes as it is deemed an illegal act. Some of the techniques of evasion include misrepresenting figures of earnings or profits and reporting a lesser amount. It also involves showing extra deductions which are disallowed by law when filing tax reports. Tax evasion would mean that a person who earns income does not want to report it to the Canada Revenue Agency (CRA). Businesses can also be charged as guilty of tax evasion if they intentionally report a lesser amount of sales than made in actuality.

Another kind of tax evasion is on the sales taxes which are due to the government when any purchases are done which are outside of the jurisdiction of a particular business location. As per Section 239 of the Income Tax Act, the penalty for tax evasion could be at least fifty per cent of the total amount that has been evaded.

The Application of VDP or Tax Amnesty

Taxpayers are given tax amnesty or VDP by the Canada Revenue Agency when they are allowed to declare their income or amend any errors made in the previous filing of income tax. The government generally agrees to such corrections on the past returns and accepts a specified amount. There is a condition which waives off the penalties when the taxpayers disclose and claim tax amnesty.

The CRA administers all cases of tax amnesty under the Voluntary Disclosure Program (VDP). An example can be given of a case where an individual has filed a tax return in the past and has failed to declare the accurate income. He or she has also declared more expenses than the actual entitlement. Such an individual can qualify for tax amnesty application under the VDP.

Eligibility of VDP or Tax Amnesty

Certain conditions have to be met for a VDP application. The income that is being disclosed is pertaining to a declaration that is at least a year old and that declared income would have been subject to penalties. The disclosure is totally voluntary. It is advisable to go through these disclosures through a specialised tax accountant.

It has to be taken into account that if the CRA contacts the defaulting taxpayer within a year prior to the disclosure, then the disclosure cannot be considered as voluntary. If the disclosure is not done on a complete basis to sort out all the discrepancies in the previous years, then the tax amnesty cannot be applied for.

A letter is sent to the CRA as the initial step in the VDP process, explaining the disclosure that is intended to be made for the type of tax return and also for the assessment periods in question. When the CRA accepts your application, it will acknowledge and assign a VDP number and assign a VDP officer to address your application request for tax amnesty. The applicant will then have a period of ninety days to sort out all the corrections and amendments. At the end of that period, the CRA will issue the final confirmation that the VDP request has been approved for tax amnesty.

Tax SOS, equipped with VDP knowledge and experience, has helped many clients in achieving great results through VDP or Tax Amnesty program. Call us at 1-877-982-9767

The pay-as-you-go tax system has been adopted by a number of countries including Canada, whereby the taxpayers are required by law to pay their tax as they earn an income. Individuals who do not make their tax payments during the year are obligated to make those payments in full on or before the tax deadline that has been specified by the Canada Revenue Agency or CRA, as it’s commonly known.

When does a CRA collection action start

In case of non-payment, the CRA has the right to take enforcement action and they do not have to give a warning to the taxpayer or get a court order for doing so. This is to ensure the complete collection of tax for the government.

If individuals are unable to pay off their taxes, the CRA will still collect their taxes either voluntarily or involuntarily, whichever option is necessary. They have specific procedures that they follow for the purpose of collection. Staffers undertake this procedure by first informing the taxpayers about the amount of tax that’s owed by them. They also offer a certain amount of time to taxpayers for setting up a payment plan. If the taxpayers do not take any action, the CRA collection procedure dictates that the assets or funds of the taxpayer will be seized.

CRA collection: payment plan option 

If the taxpayer makes an effort in good faith, the Canadian Revenue Agency will work out a payment plan for them. However, each payment should be made on time or else taxpayers will have to face penalties that can be very severe. If a lump sum is enough to settle the amount, individuals have the option of mailing a cheque or visiting the local CRA office. If a payment plan has been chosen, individuals will be required to pay a specific amount on a monthly basis for satisfying their tax liabilities. Interest will start accruing if the payment is not made on the deadline.

Strict penalties are part of the CRA collection procedure in the scenario where tax is not paid by people in a timely manner and they are unable to pay it. A notice will be sent by the CRA through mail for informing the taxpayer that they intend to collect the tax owed by placing a levy on the individual. The amount owed will also be mentioned on the notice and a short response time is given to individuals before any action is taken. A levy will be placed on any wages or income earned if a response isn’t made to the CRA.

The employer will be contacted by the CRA and a withdrawal of a significant amount will be made from the wage of the taxpayer. The tax deduction will usually be 30% of the paycheck because the CRA is aware that financial survival burden may result otherwise. If the taxes cannot be deducted from the income because there isn’t any, the levy will be placed by the CRA on the home or other assets owned by the individuals. The property and vehicle are repossessed and auctioned off in the CRA collection process for clearing the tax dues of the individual.

Paying taxes is the legal obligation for every individual, business or organization that’s earning an income. The collection of taxes is undertaken by a particular organization that has been established by the government of a country. For Canada, the Canada Revenue Agency or the CRA as it’s known is responsible for collecting taxes from the citizens of the country. Usually individuals and businesses calculate the taxes and file returns with the CRA. However, in some scenarios, the CRA will reassess the tax filed and recalculate the tax owing. When this happens, sometimes the individuals or businesses might not agree on the tax assessment made by the CRA.

In such a situation, a tax appeals process has been instituted by the Canada Revenue Agency that can be used if people do not agree with the tax liability that has been assessed. If the taxes of people have been adjusted or they are asked to pay more than they owe, they can opt for CRA tax appeal. People will not be charged unjustly if they have complete knowledge of their appeal rights. The CRA usually sends a letter to the party when it’s making adjustment to their tax liability.

Representation in CRA Tax Appeal

People have the option of appealing interest charge, levies, liens and even penalties that may be applied. People have the option to represent themselves in the appeals process. Other individuals that may assist in the CRA tax appeal process include those accountants and attorneys that are certified in the tax practices of the CRA. The document related to the tax in question can usually be found on the website and people should refer to it for deciding if a mistake has been made by the CRA before they actually appeal.

Documentation has to be obtained if it is clear that the CRA has made a mistake in the tax assessment. Depending on the type of tax that has been improperly implemented, documents of taxes paid, proof of assets and wage slips may need to be provided in a CRA tax appeal procedure. Before the submission of tax appeal documentation, it is essential to have all these records in proper order. In case of an appeal, the tax collection is typically put on hold until the dispute is resolved and the process of appeal is complete. If the appeal is not successful, the taxpayer may have to deal with accumulated interests during the appeal period. Thus, they should be prepared for it.

The application of CRA tax appeal

CRA tax appeal can be made for wrongful assessment of income taxes, against tax audits or against penalties and interest as well. If the appeal is successful, penalties and interest are reduced usually, but it is very rare for an audit to be completely overturned. It is important to be prepared properly because it is the goal of the appeals office to keep cases outside the tax court. In order to win a CRA tax appeal, the taxpayer should have enough evidence to show that they can actually win if they go further to tax court.

CRA tax appeal can be a complex process that involves specialized knowledge of all the deadlines and all the needed forms and documentation. Call Tax SOS for a free consultation for your tax appeal case 1-877-982-9767.

Every individual or business that’s earning an income is liable to pay the government a share of its income in the form of tax. Tax evasion is a term used when parties deliberately fail to pay the taxes that are applicable on them. Under the laws of almost every jurisdiction in the world, evasion is termed as a felony because it hampers the ability of a government to fund its own operations. There are both civil and criminal penalties associated with this act and this is said to be very dangerous because even an innocent and honest mistake of the taxpayers can have serious consequences.

Solutions for tax offence – VDP or tax amnesty program

Taxation rules and codes aren’t easy to understand. What people need to know is that tax avoidance and evasion are two different concepts. Avoidance is very much legal while the latter is not. In case of evasion, some of the consequences include payment of penalties, fines and interests. Apart from that, they may also face the possibility of imprisonment, which can ruin their business and career. However, one would be lucky to discover that in case they are coming up short on the taxes they owe or they are facing criminal charges because of failure to pay, they can take advantage of the tax amnesty program that exists in almost all countries.

What is VDP or tax amnesty program

Tax amnesty program is also called Voluntary Disclosure Program short for VDP. It is basically a strategy that’s employed by the government officials for generating revenue. With this program, people who have underpaid or evaded taxes can make their payments without having to deal with interest and penalties. All taxpayers can usually take advantage of this program, but it also has an expiry date and complete disclosure should be made before that. There are benefits associated with such programs for the government and also the taxpayers. One such tax amnesty program that’s offered in Canada is the VDP or Voluntary Disclosure Program administrated by Canada Revenue Agency or short for CRA.

The benefits of VDP or tax amnesty program

As the name indicates, taxpayers who have committed tax fraud and evasion can come forward voluntarily and cooperate with the CRA for avoiding criminal prosecution. With the help of the CRA VDP or tax amnesty program, individuals and businesses have the opportunity to settle their taxes without having to pay a lot of interest or penalties and avoid criminal charges altogether. As for the Canada Revenue Agency, it can also collect its past-due taxes with this program and avoid having to go through the expense and complications that are associated with a criminal trial.

Such tax amnesty programs are immensely beneficial, but taxpayers have to keep in mind that they need to disclose all their taxes by the deadlines that have been established as per the program. The tax amnesty period might not be a very long one, but it offers a business an opportunity to avoid any astronomical late fees. Sometimes CRA can even reduce the interest in addition to waiving the entire late fees. In some cases, individuals and businesses may also have to pay penalties if they had been offered a tax amnesty program, but did not take advantage of it. It is a good way of getting out of charges for evasion.

VDP or Tax amnesty program is no doubt a complicated and time consuming process, knowing how to navigate through the system is the key to get the criminal prosecution and penalties waived. Working with VDP experienced tax professionals helps a great deal in reducing your stress and achieving satisfactory results. Call Tax SOS for a free consultation at 1-877-982-9767.

It is bad enough for people that they have to pay a portion of their income to the government in the form of taxes, but calculating their tax and filing returns can be a major hurdle for people. That’s where tax accountants step in.

Why hire specialized tax accountants

It can be stressful, time consuming and confusing for individuals to calculate and prepare their tax returns. They can opt to hire specialists that are aware of the whole procedure. These tax accountants offer support to individuals and businesses by preparing their income taxes. They keep the tax laws in mind when calculating taxes in order to avoid any problems.

Seasoned tax accountants can prepare both the personal and business tax returns effectively. They review clients’ records, calculating and monitoring the income, tax credits and deductions. They remain updated about any of governmental tax regulation change that has been made in tax law because they perform research regarding the regulations and de-regulations.

It is essential that a high standard of ethics is maintained by tax accountants. They have access to very confidential and critical information to their tax clients and thus ethical handling of this important information is imperative. Moreover, experienced tax accountants have prepared numerous individual and commercial clients tax returns and thus understand the keys to help clients reduce the taxes owing in safe and legitimate ways.

How to choose good tax accountants

In order to be good at their jobs, tax accountants need to be meticulous about details and extremely organized; tax accountants also have to excel in mathematics and also enjoy it. Having an interest in tax law is also essential because they will need to undertake consistent research to remain updated about the changes in tax regulation. They should also be punctual and meet the deadlines, especially during the tax season. In order to be considered an able and qualified tax accountant, an individual should have a bachelor’s degree in business, accounting or any other related field for becoming part of this profession in addition to years of professional experiences.

Apart from that, a business may also refer to the tax accountant when making a business decision in regard to its tax consequences. Therefore, having highly experienced tax accountant on your side can be highly useful.

With a collective hundred years of experience, the Tax SOS team of tax accountants can really help you to put your unfiled tax and other tax problems behind professionally. Contact us for your free consultation at 1-877-982-9767.

Every individual or business organization earning income and profits respectively is required by the law to file their taxes on a yearly basis. Taxes are basically the primary source of income for governments and it is used for the development and improvement of the country. Filing a tax return Canada is essential and obligatory for individuals and businesses that are earning money. Fines and penalties are levied on those who do not pay their taxes and they will increase over time. Therefore, everyone is advised to file their returns as soon as they become due and avoid any problems in the future.

Problems with unfiled taxes

However, over six percent of people forget or neglect to file their tax returns on a regular basis. They end up encountering the problems of unfiled taxes that can prove to be immensely complicated for them. The implications of not filing should be understood by people for ensuring that they do so on time. If a tax return is left unfiled, the CRA may do arbitrary assessment that may increase the amount due. They may also have to deal with penalties of late-filing, which can further boost the costs. Also, the company or individual may also be subject to legal action by the tax authority, which can create even further problems.

Apart from that, there are often time limitations for collecting tax refunds and not filing on time would mean that people will lose their refunds and thus have to pay a high amount of tax. If tax is owed with the return, late tax filing means that severe penalties are applied. Interest charges may also have to be borne on the tax along with the penalty. Also, regardless of the number of years that pass without filing a tax, it doesn’t mean that the obligation goes away with time.

Solutions for unfiled taxes in Canada

If people are having tax troubles and need to get out of it, they should file their returns. Late tax preparation involves filing all your pending and unfiled tax returns. The first step to undertake is to determine the years that require filing. People can contact CRA if they lack any records of when they last made their filing. The next step requires people to gather all the necessary documents that are needed for the filing process. This includes income documents such as T5008, T4 or T5 slips or other income slips/forms and other tax-related documents as they are all crucial for filing returns.

Obtaining the tax forms is the third step that should be taken in the case of late tax filing. The correct form should be used for every year. This means that the current year form cannot be used when filing for taxes of the previous year. People who are aware of the tax codes and laws can file their returns on their own. They can also hire a professional for filing their back returns and figuring out whether individuals are going to get a tax refund or owe to the CRA.

If you need help with unfiled taxes and are given urgent deadlines to file, call Tax SOS right away to ensure a timely and professional completion of your tax filings at 1-877-982-9767

You can never be overly cautious in Canada concerning tax audit defense. There are cases when even a hundred per cent accurately filed tax returns could face a tax audit. In order to be proactive, it is better to be prepared with tax audit help. It is not sufficient to keep your assessment figures accurate. You also have to prepare your defense strategy against a possible CRA tax audit.

CRA tax audit strategy

With an audit defense strategy, you may get that much needed peace of mind that can be provided by an experienced and reliable tax audit specialist. It is a relief not to encounter the CRA audit all by yourself. The audit defense specialist will be able to represent your case when there is a requirement and will also support you with the necessary tax audit help by way of pre-assessment and post-assessment reviews of the tax returns along with the documents that support those returns.

The tax audit specialist may also provide you with personal tax package that includes the audit defense tools. A CRA tax audit could be a frightening experience. There are many people who will get nightmares concerning a CRA tax audit. There is plenty of professional tax audit help that is available in Canada in connection with a CRA tax audit, assessment issues.

Professional help on CRA tax audit

You need tax audit help if you have trouble dealing with CRA tax auditor yourself. Professional tax audit specialists and tax consultants can ward the CRA off with proactive plans and valid arguments on your behalf. The consultants will help guide people in their dealings with tax examination and work in their best interests. They are able to do this by their custom tax practices as well as their copyright pending software that they develop for their clients. They also provide accounting that is prepared for the CRA tax audit in such a way that the package can sufficiently support any tax investigation.

Tax audit help and related solutions are very cost-effective strategies to prepare your accounting books and your business records for the purpose of CRA tax audit. Some accounting services will help in various insolvency matters and in situations where litigation may be called for. There is a possibility that legal challenges may arise when tackling matters of audit with the CRA.

Tax audit help in connection with the CRA tax audit requires careful analyzing, interpreting and also presenting complicated business and financially related matters in a way that is convincing to the tax authorities. It will also help in the examination of evidence on an operational level to establish that operating procedures have been adhered to in a prescribed manner.

To audit proof your taxes, or to deal with CRA tax audit demand, you need to get experienced professionals’ help. Call Tax SOS at 1-877-982-9767 for your free consultation.

CRA tax problems could take on a whole range of dimensions for taxpayers. They may take the form of

• Income that is not reported
• Demand to File
• Taxes which are overdue
• Back Tax
• CRA Tax Relief and Taxpayer Relief
• Notice of Objection
• CRA tax appeal
• Tax payment Plan
• Wage garnishment
• Voluntary Disclosure Program (VDP)
• CRA audit

How to properly deal with CRA tax problems  

Tax reporting in Canada is a stressful activity, particularly if the taxpayer has been served a letter from the CRA consisting of some kind of demand for financial disclosure or proof of evidence for something that has been claimed in the reports.

The logical approach to CRA tax problems is to meet them head on and on an informed basis, or the entire reporting episode may turn out to be one of your worst nightmares. It is not safe to ignore the communications that are sent by the CRA. It is better to make arrangements than keep quiet. Ignoring the notices from CRA would lead to a CRA collection issue which may stretch to your income being garnished through your employer.

It is advisable to seek the help of a qualified tax consultant or specialized tax accountant who could look after demand letters, frozen bank accounts, CRA wage garnishments and requests for financial disclosure or liens on your property. There are several service providers of this kind who specialize in the area of offering cost-effective tax related guidance to solve your tax problems.

Why use professional tax accountants to fix your CRA tax problems

A professional tax accountant would provide assistance in solving your tax problems which are related to income taxes, payroll taxes, Goods and Services Tax, Harmonized Sales Tax, etc. These tax accountants take on the responsibility of assisting individuals and businesses all over Canada and solving their CRA tax problems at the provincial and federal levels.

The professional tax accountant specializes in all accounting activities, audit planning and business consultation concerning all CRA tax problems. All insolvent taxpayers whose tax reporting is not up-to-date could approach the CRA through such accountants to accept a specified amount on the taxes outstanding.

Tax consultants have to be equipped as specialists in tax resolution and tax defense procedures to assist individuals and companies resolve their tax problems with the CRA. The related services generally include the entire imputing process which may consist of the Notice of Assessment, applicable requirements, request for waiver of interests, tax audit, cost of living and the net worth audit.

To help solve your CRA tax problems, communication between you and your tax consultant is always required. Bankruptcy filing can be avoided and tax relief processes may be adopted. The assistance of tax consultant becomes essential as the tax defaulters are under the risks of legal enforcement actions.

To prevent CRA collection agents from taking legal actions, get help from experienced tax professionals immediately before it is too late. Call Tax SOS for your free consultation at 1-877-982-9767.

Taxes are a source of income for Canadian government through which they are able to fund programs, spend on infrastructure development of the country. The largest tax obligation faced by individuals is the federal income tax. Majority of the individuals are legally obliged to file tax returns with Canada Revenue Agency, short for CRA, for the purpose of disclosing earned income and pay taxes accordingly. However, individuals can end up facing a myriad of tax problems in the process of filing returns and disclosing the income they have earned.

Discussed below are some of the common tax problems that are encountered by people when they are fulfilling their taxation obligations:

Common Mistakes that lead to tax problems

Mistakes in Tax Filings

Confusion can arise because of common mistakes when filing taxes and this can make this procedure a long and complicated one. A taxpayer might over or under calculate their tax because of simple mathematical errors made in a tax return. Penalties may have to be paid later on if the taxpayer has underpaid their tax. Moreover, if the taxpayer overpays and does not notice it, it can mean losing a lot of money. Some other tax filing problems that can also occur include checking the wrong boxes when filling forms or entering the wrong number.

Tax Audits

One of the most worrying and complicated tax problems that can be faced by individuals and businesses is that of a tax audit. When foul play is suspected by the taxation authority, they wish to audit the files of the taxpayers in order to unearth any discrepancies that may exist. The CRA will assign tax auditors to sift through the financial data of the taxpayer for checking if the return was filed accurately and additional taxes are calculated.

Tax Liens

If taxes are owed by a business or an individual and they are unable to make their payment, there are different collection methods that can be adopted by the CRA to force payment from the taxpayer. Tax liens are one of the most serious legal collection actions. If a tax lien is placed on the taxpayer’s property, this can have an impact on the credit score of the taxpayer. Because of the lien, the tax payer will find it difficult to obtain loans or sell any real estate for that matter. Also, the property can also be possessed by the CRA in exchange for the tax owed.

Wage Garnishment and Levies

The procedure in which a portion of the taxpayer’s income is deducted for owed taxes is described as wage garnishment. When wages are garnished, the individual might not be left with a lot of income. Tax levies are also one of the most serious tax problems that individuals can encounter. In this process, the CRA may legally seize the assets and funds of individuals. These assets are taken to pay back the taxes that are owed to the government.

These tax problems can get quite serious if precautions aren’t taken beforehand by the taxpayer. If you are facing any of the problems above, do not wait. Contact experienced tax professionals to control the tax damage to you. Call Tax SOS at 1-877-982-9767 for immediate free consultation!

Paying tax is obligatory for every individual and business, as long as they are earning an income. However, in today’s society, it is difficult for people to fulfill all their needs within the income they are earning. Therefore, it is common for them to fall behind on their tax payments. The problem is that the tax will continue to climb up every month and will be very difficult to pay off. Without a negotiated tax payment plan, CRA (the Canada Revenue Agency), the Canadian taxation authority, can decide to subject you to refund garnishments where the tax refund of individuals is deducted for satisfying a tax liability.

Option for tax payment plan

In the case where people are unable to satisfy their taxation liabilities, they have the option of contacting the taxation authority and asking them about the tax payment plans. The CRA sometimes will agree to payment plans in regard to taxes, which can make it easier for people to pay their tax dues. There are a number of options at the disposal of the CRA to collect from those people who have a delinquent tax balance.

Monthly installment agreement can be affordable option when individuals wish to make payments once every month until they have cleared their due tax balance. Considering the amount of tax owed and the current financial situation of the individuals, the CRA will set as high amount as possible. This can add unbearable financial stress to individuals.

Why choose CRA tax payment plan

Once collection agents believe it is difficult to collect taxes, they may start legal collection actions. Wage garnishments as one form of legal action may be initiated. In this scenario, the taxation authority will partner up with the individual’s employer and deduct the due tax directly from their salary. Another legal action could be bank levy, which is very similar to wage deduction. Only this time, the taxation authority will demand the banks to deduct the due amount from the bank account of the individuals. For business tax owing, CRA may garnish business income direct from clients or payers, which can choke the financial throat of small businesses. These are the reasons why negotiating an affordable tax payment plan is crucial for survival of many business or individuals.

Call Tax SOS today at 1-877-982-9767 to have a free consultation about how you can get a tax payment plan without the surprise legal collection actions initiated by CRA.

There are different concepts and ideas of people regarding tax relief or taxpayer relief. A number of people assume that it means they don’t have to pay taxes and are relieved from them. However, taxpayer relief is defined as a process where individuals have to pay taxes, but are looking to negotiate a lower settlement with the taxation authority. On the other hand, this particular term is used by the taxation authority for referring to specialized tax deductions for people who suffer from losses and expenses because of some natural disaster or other. Basically, this term is used to refer to any legal method that may be adopted by individuals for reducing the amount owed in taxes.

Different types of tax relief or taxpayer reliefs can be sought by people if they owe taxes for the previous or current year and are unable to settle their due in full all at once. An installment agreement can be made with the taxation authority or a waiver of penalties or interests can also be negotiated where people have to pay a lower amount of tax overall.

Depending on the circumstances of the individual, various deductions are offered by the CRA that can reduce the tax burden faced by people. However, during this period of taxpayer relief application and approval, the interests and penalties will continue to grow. The CRA will carefully examine the merits of the individual and determine if they will be unable to clear their outstanding tax liability.

The typical grounds that can be used for taxpayer relief

Extraordinary circumstances, such as flood, fire or other natural or man-made disasters; disruptions in services, such as a postal strike;  serious illness or accident; or distress caused by a family death.

Mistakes of the Canada Revenue Agency (CRA) such as errors in processing tax submission or prolonged delay in assessing returns.

Financial hardship is another ground in the taxpayer relief application.  The CRA may, upon the confirmation of inability to pay, consider waiving or canceling interest so taxpayers can afford to pay their taxes. Common example will be the loss of employment and the taxpayer is experiencing financial hardship;

CRA can also consider under financial hardship if a taxpayer is unable to set up a payment plan because the interests are the big portion of the tax owing.

Get help with the complicated tax relief (taxpayer relief)

The taxpayer relief process is a lengthy and difficult one. Without the guidance of experienced tax professionals, it could end up wasting taxpayers’ time without any relief being granted due to the insufficient support or weak argument. Call Tax SOS for help to make the process easier for you at 877-982-9767.