A tax audit is a complete analysis of the conditions pertaining to the tax returns which are submitted to the CRA by a taxpayer or a business. ?The impression that is projected by the very phrase “tax audit” brings to mind anxious feelings even among those taxpayers whose tax documents may be in perfect order. A tax audit may be a result of some irregularity in the tax returns or it may be as part of a casual sampling.

The CRA has the task of supervising the collection of taxes from both individuals and companies in Canada. The tax returns are reviewed as a routine and minor errors may be corrected in collaboration with the taxpayer as part of the collection process involving a tax audit.

A few tax returns may be selected on a random basis for a tax audit as a part of the process of review. If this is the case, then normally there are no penal measures which are involved. The taxpayer has to simply present the copies of their tax returns which have been filed for the period in question along with any supporting documents. These documents are presented to a representative of the CRA.

A Tax audit may also become necessary if the CRA feels that there is a sufficient reason to believe that a tax payer’s deductions are not allowed. The CRA may feel that there has been a deliberate attempt to conceal income. In such a situation, the CRA will call for a tax audit to sort out the discrepancies. If the taxpayer comes out with sufficient proof that the initial tax returns submitted were correct and in order, then the CRA will accept the arguments. When the CRA feels that a tax deduction cannot be allowed, the tax return will be calculated once again and interest penalties could be applied to the taxpayer.

Even though a tax audit may be a routine procedure for the CRA, it could be an anxious phase in a taxpayer’s life. It could be a nerve-racking moment for a taxpayer when he or she receives a letter from the CRA informing that their tax returns have to be audited. Many taxpayers believe that the CRA may not know when they conceal their income, but the CRA has ways of finding out more about the Canadian taxpayers. They retain the information that is initially provided to them by the taxpayers and they can also gather additional information about a taxpayer from third parties that include financial institutions.

To avoid a tax audit, it is wiser on the taxpayer’s part to file his or her tax returns by the deadlines which apply. If money is due to the government, regardless of whether a taxpayer can afford to pay the taxes or not, it becomes a criminal offense not to file the tax returns. If the taxpayers wait around till the time they feel they can afford to pay their taxes, they may discover that the penalties for filing late may make it more difficult for them to do so.

For tax audit help, it is important to make sure that you have someone who is experienced and specialized in CRA tax audits. Call Tax SOS’ experienced tax team at 1-877-982-9767.

If you are living in Toronto and have suffered some form of disability, you need to get in touch with a Toronto tax consultant to learn more about the disability tax credit in Toronto and other cities in Canada. There are many people in Canada who still do not know the difference between gross and net income or, for that matter, between support programs sponsored by the government and their impact on taxes.

People who are living with some kind of disability must know what is available to them. People who have suffered with head trauma get additional benefits. Disability Tax Credit that come in the shape of benefits in Toronto are mainly to help people who are earning their income to reduce the burden of taxes. A Toronto tax consultant will be able to inform you on how government Disability Tax Credit programs help support people who are unable to work due to a disability.

A tax consultant will help you process your application for CPP Disability Program. He or she will also be able to get you some Disability Tax Credit relief in Toronto. The biggest relief medium is Canada’s Disability Tax Credit Certificate. It is Form T2201. This application will help you bring down the tax load if you have any disability as a result of an accident or severe illness and you are not able to work and earn above the basic levels of personal exemption. A point to be noted is that CPP disability gets taxed. You may not be employed or you may be working minimally but you will still be liable to pay your taxes.

As a disabled person in Toronto, if you are earning very little or nothing at all, the tax credit may not apply to you. In this case, your spouse or partner as per law or your caregiver can use the tax credit for disability to get tax relief. There is another option where a Toronto tax consultant would be able to advise you. Both you and the support person can use the tax credit for disability if you earn enough to require some but not all of the credit. The support person can then use the portion you are not using.

The Toronto tax consultant would guide you to consult your general practitioner in helping you to fill out basic data on Form T2201. It is your general physician who would be able to provide all the technical details concerning your disability. This form cannot be mailed in the same envelope along with your tax returns in Toronto. It has to be sent separately. It takes about three to four months to hear from the Agency. Medical and disability expenses can be claimed when they are at least three per cent of the net income. All medical expenses are not deemed eligible. Vitamins and mineral supplements are excluded. There is a probability that you will also be able to apply for GST or HST credits.

What does  CRA taxpayer relief  involve?  It is a kind of agreement which is negotiated between the CRA and the taxpayer in order to resolve a tax owing issue. In certain cases, the CRA will settle the tax liabilities by taking less tax than what would normally be due.

CRA taxpayer relief  is normally granted to those taxpayers who have been affected by circumstances which may be extraordinary. These circumstances could be as a result of error on the part of the tax authorities; they could be due to taxpayers who have been affected by severe medical conditions; they could be due to natural disasters like flood or fire and they could also be due to some severe financial hardship on the taxpayers. If any of these conditions apply to you as a Toronto taxpayer, you could qualify and save money in interest or penalties.

CRA collection procedures are quite tough and stringent on tax defaulters. Before the CRA takes any action, you have to be proactive and take proper steps before your tax issues become a problem. You require the full support of competent tax professionals who can also negotiate CRA taxpayer relief package on your behalf.

These professionals can also help in the filing of tax amounts that are in arrears and when required, they will be able to help release a CRA bank freeze as well. Tax professionals are well versed in the rules of CRA taxpayer relief. They will take care of the assessment before negotiating as all clients cannot be eligible for the relief. It takes professional judgment to decide whether to proceed with CRA taxpayer relief.

Tax accountants understand the risks of not being prepared and that is the reason why they do not submit tax relief forms without due deliberation. A wrong submission concerning tax relief can lead to other tax issues with an unintended exposure to CRA agents. The application for CRA taxpayer relief demands tax expertise as information has to be presented in optimal terms so that the best settlement is obtained for the taxpayers. It cannot be treated as a simple form filling exercise. An application which is not prepared in order may destroy the chances of being eligible for taxpayer relief request.

A CRA taxpayer relief  application can take a long time in being resolved. It may take anywhere from a quarter of a year to perhaps a full year and will require  regular follow up with the CRA. Very few professional tax firms in Canada have the know-how and necessary experience to handle a CRA taxpayer relief case while guiding the taxpayer through the entire process. These firms have to be well equipped and thorough with their homework and their research in these cases with each individual client.

It is a fact that taxpayers in Toronto and other cities in Canada get significant benefits in the long run from hiring an experienced professional Toronto tax consultant. As a taxpayer in Toronto, if you are going to spend money on a tax consultant, make sure that you find the right kind of professionals to file your tax returns and give you the proper advice for other tax problems beyond filing taxes such as tax appeal or tax relief. To begin with, you have to understand the purpose of needing an experienced Toronto tax consultant. There are questions you need to ask before you make your decision. Take the time to focus on these issues and arrive at exactly what it is that you need your tax consultant to handle.

Preparing your own tax returns and filing the assessment is not an easy job. It can be stressful and can consume a great deal of time. You have to submit accurate tax returns. No tax situation is simple. It is a complex procedure and you will require a good deal of specialized help. Your objective is to keep your taxes to the minimum. To achieve this, you have to do detailed planning and a Toronto tax consultant will be able to do that for you.

Tax filing is not a single filing process job. It may have several twists to it. There may be various kinds of situations where you may have to file arrears tax amounts or struggle with CRA negotiations or audits. If your business has dealings abroad or owns rental property outside Canada, you need to include that too. You need a tax consultant who has expertise and specializes in areas that you specifically need help with.

Referrals are a good way to start your search. Your family, friends and business associates can give those referrals. It is better to start with people who have a similar tax situation as yours. Be cautious of those accountants who make big promises and talk about large refunds and give advice that you can deduct almost everything. You have to understand that it is you and not the Toronto tax consultant who is ultimately responsible for the tax returns.

Some independent tax accounting firms will be more experienced than others. You need to make sure that you feel comfortable with the Toronto tax consultant you are about to work with. Pay attention to your Toronto tax consultant’s review by past clients. Other things that you need to be checking are the privacy policies and the fees that are going to be charged.

If your small business has been affected by natural disasters like floods or earthquakes, your Toronto tax consultant can help you with taxpayer relief measures provided by the CRA. This kind of tax relief is offered by CRA to those business units and individuals who cannot meet their corporate tax requirements as a result of natural disasters or other uncontrollable disasters.

People in Canada are not fully aware that they will be charged heavy penalties by the CRA for tax unfiled and late filing. The penalties become hefty, particularly for defaulters who become repeat offenders. So, if you owe taxes and are not filing your tax returns on time, you can expect first time late filing charges to be up to 17% of the tax amount due to the CRA. When the late filing incident is deemed as a repeat occurrence, the penalty can even be hiked up to 50% of the tax amount due.

Apart from the penalties for tax unfiled and late filing, the interest charges on the tax amount balances are much higher than the rates charged by the banking institutions. These interest charges are compounded on a daily basis. When people pile up back taxes for several years, it will not be surprising to observe that the penalties and interests will make up more than half the amount of the actual tax amount payable. The interest keeps piling up at an alarming rate.

Late filing and tax unfiled may even result in criminal charges against the defaulters. Despite this threat, many individuals and business owners in Canada have problems of tax unfiled. One of the principal reasons why the taxes may not be filed on time is because many people feel that by filing of the tax returns, they may owe amounts which they are not in a position to afford to pay. This problem gets more complicated as tax arrears pile up for more than one period of assessment.

People with tax unfiled require services of a firm of tax accountants or tax service providers. The cost of hiring these services is worth it for the experience and the knowledge that these providers possess. Under Sections 238(1) and 239 (1) of the Canadian Income Tax Act, tax unfiled or late filing for a period beyond one year for a tax amount due is a criminal offence. Failing to declare income which is taxable or concealing it is an offence which is punishable by financial penalties as well as by imprisonment.

Most people make the mistake of thinking that they are off the radar with tax unfiled; but, that is not the case. CRA keeps a tab by monitoring the financial behaviour over a period of time. They use identification tags like Social Insurance Number or the date of birth of a person to access data from the bank accounts, credit card transactions or the acquisition of property or any other possessions. The longer they allow a taxpayer for tax unfiled, the higher is their revenue generated in the form of penalties and daily interest on the tax amount payable. The longer the period of tax delinquency is stretched, the easier it becomes for the CRA to establish a criminal case for evasion of tax.

Once a person is convicted for tax unfiled, the penalties can soar as high as two hundred and fifty per cent of the actual tax amount due to CRA in addition to the daily interest compounded charges. Imprisonment could involve a jail term of up to two years. The taxpayer’s reputation also gets tarnished with this kind of a criminal record for tax unfiled.

For individuals and business owners in Canada, handling a tax dispute could become a stressful process. Every individual should be aware of the basics of tax disputes and CRA tax appeal process.

The tax system in Canada is mostly a self reporting one. A taxpayer has the obligation to report the tax amount with transparency and with accuracy. It is expected out of each taxpaying individual at the time of filing the annual tax returns. The CRA processes these tax returns and takes a decision on the accuracy of the information that has been reported. CRA then provides the taxpayer with a tax assessment. This is the Notice of Assessment and is sent as a routine to each taxpayer some weeks after he or she files the tax returns.

The CRA has a right to request more information concerning the tax obligations. After an audit, the CRA may not agree with what has been reported on the tax returns and the auditor will have a proposal letter issued outlining the position of CRA and how the taxpayer can be reassessed. Individuals can take the help of professional tax lawyers who can give them advice about the audit process of CRA and represent them throughout this process.

The date featured on the Reassessment Notice is the beginning of the ninety day CRA tax appeal period. The proposal letter contains the information required if you want to dispute the tax amount, the interest calculated or the inclusion of penalties on account of the reassessment.

The objection in the form of a CRA tax appeal has to be sent to the Appeals Division of the Agency. The taxpayers get ninety days from the date of the Reassessment Notice to file the Objection Notice with the Chief of Appeals. This deadline is an important one and it cannot be missed. Tax lawyers assist the individuals in sending these objection notices.

In rare cases when the deadline of ninety days is missed, an extension to file late could be applied for. Time is allowed up to one year after the normal deadline. After receiving the Notice of Objection, the CRA reviews the application and decides whether the reasons supplied are in accordance with the CRA tax appeal rules.

An officer from the CRA Appeals Division is assigned to an individual’s file case. This officer could be from any CRA unit in Canada. The officer is assigned depending on the workload and may not be from the same city where you are residing. After receiving the CRA tax appeal, the officer handling that appeal has to either cancel the reassessment by vacating it or he or she may vary the reassessment. The reassessment can also be left alone by confirming it.

Specialized Tax Professionals would be able to guide the individuals on the streams that can be followed when filing a CRA tax appeal. There is a general procedure and an informal procedure. The procedure you would adopt will be based on the federal tax amount that is in dispute. Fees have to be paid for filing the Appeal Notice if it falls under the General Procedure rules. Informal Procedure is for small disputes and there is no fee required for filing.

The Voluntary Disclosure Program of CRA has been created to encourage the taxpayers to disclose their income which is not reported earlier on a voluntary basis. Toronto VDP assures the taxpayers that they will not be held liable or prosecuted for evasion of tax if they disclose their unreported income voluntarily. There will not be any civil penalties that will be imposed on these taxpayers. The accrued interest on their tax account will also be reduced. This interest has to be connected to the statute exempted years.

The disclosure by taxpayers has to meet four Toronto VDP conditions. These conditions are that the disclosure has to be on voluntary basis; the disclosure has to report the total concealed income; the disclosure has to be involved with a penalty application and the disclosure has to include all information for the period that is at least dating back to one year or more.

The taxpayers have to go through a possible three stages to qualify for Toronto VDP. These stages are the initial submission, the administrative review and the judicial review. The CRA looks at the circumstances that surround the motive for the particular disclosure. Toronto VDP legal submissions have to be made to the CRA, disclosing all the facts and laws surrounding that disclosure. The application has to support a stance that the undeclared income of the taxpayer has to be accepted by theCRA and that it should be secured against civil penalties or a case of criminal prosecution.

The taxpayer would be well advised to take the help of a professional tax accountant to understand how CRA is likely to audit this information given on the disclosure through VDP Toronto. In some cases, taxpayers may not be completely certain that they have one hundred percent of their information relating to their disclosure and thus decided not to report them. This can turn out to be disastrous in the future if the CRA catches them.

The application requires the taxpayer to submit additional evidence or facts to make his or her case stronger. There is a possibility that the taxpayer may have missed out reporting these facts earlier. This is the last opportunity that the taxpayer will get to initiate any arguments to escape prosecution for evasion of tax.

The last stage for Toronto VDP is the application for the administrative review. Once the administrative review starts, the taxpayer has to file the application for judicial review to the CRA within three months from the time that the acknowledgement was communicated to the taxpayer by the CRA. The taxpayer could also apply for time extension trying to get the Toronto VDP accepted. If the CRA accepts the Toronto VDP after it meets all the conditions set forth, then the disclosure will finally be considered a valid one and the taxpayer will not be penalized or prosecuted in connection with the disclosure.

One of the most common tax problems for Toronto taxpayers or other region taxpayers is unfiled taxes. Remember that filing your taxes is important and must be done on a yearly basis to avoid tax problems with the CRA. They have the ability to freeze your HST and the child tax credits if they deem it necessary.  They can also freeze bank accounts and garnish your earnings all of which can make life difficult for you. Interest and penalties can also be assessed until such time as your taxes are settled in full.

Another common tax problem is the tax owing problem. If you owe taxes and can not afford to pay in relatively short period, it is possible to work out a payment plan with the help of your tax accountant. A payment plan can help save you interest charges and penalties in some cases. Sometimes your tax penalties can be cancelled. Each situation is looked at on a case by case basis. If you have ever experienced any serious ailments, loss of employment or even natural disasters, there is a good chance the CRA may look at alternatives to help you reduce your owing and potentially work out a payment plan.

Some tax problems that can arise can be in the form of fines, penalties and in extreme cases, imprisonment. Tax evasion is considered a serious criminal offence in Canada. Concealing income or falsifying data when filing your tax returns can bring about this type of penalty.

If your tax problems involve tax owing, it is possible to negotiate a reasonable tax payment plan. A specialized tax accountant can help you to negotiate a tax payment plan that can be agreed upon and mutually beneficial to both you and the CRA.

Tax problems can be overwhelming.  With years of experience, professional tax accountants are there to help you navigate through the intricacies of Canadian tax law and help you reach the best possible solution to your tax problems.

When the CRA is notified that the collection of a tax has become overdue, they may then file a tax lien. This lien may be attached to the taxpayer’s property. This lien can limit the taxpayer’s rights to his or her property. This is applicable to real estate, personal effects or bank accounts. CRA collection in Toronto or in any other cities in Canada could enforce a tax levy which could involve seizure of property, bank accounts and even the taxpayer’s wages. The CRA has the right to garnish half the taxpayer’s income from the employer and up to one hundred per cent of any additional sources of income that the taxpayer may have.

People who need help with their tax issues have several options. One of them is to employ the services of a tax attorney or law firm. Another option is to get the help of certified public accountant. Tax lawyers are good negotiators and the tax accountants are knowledgeable in all tax matters. There are certain firms that provide to the Canadian taxpayers full expertise of both professions while offering the additional option of tax representatives. These tax representatives are people who have got prior experience working in the capacity of CRA tax agents.

This combination of expertise can help the taxpayers in most cases involving  CRA collection in Toronto  or in any other cities in Canada. They may also be able to get the total tax amount reduced for the taxpayer. They have the capacity to dispute all unfair assessments and negotiate a favorable  Toronto CRA tax payment plan.

The CRA has been given the responsibility of all collection activities by integrating the collections for the government. These activities were previously handled by Human Resources and Social Development Canada.  This includes all tax owing that have been incurred through Canada Student Loans, Old Age Security, Canada Pension Plan, Employment Programs and Employment Insurance.

The CRA was chosen for the collections function because of its previous experience collecting a whole range of taxes for the federal government and the provinces. It also collected premiums for many social programs. The CRAdraws on its current infrastructure for its CRA collection. It brings expertise and a capacity to support the administration while integrating the collection operations of other departments.

CRA Collection in Toronto or other cities involves both automated and manual procedures to retrieve outstanding tax liabilities. Some of the procedures the CRA uses are letters generated by computer, field visits, telephone calls and legal actions.  CRA collection in Toronto  or other cities act through the Revenue Enforcement Management Information Tracking System. This is a national call center for collections. It is placed at eight locations and collects two account pools nationally; they are Goods and Services Tax and personal tax. The complexity and the size of the outstanding tax amount will influence the collection mode that is likely to be used by the CRA.