A CRA tax audit could become a daunting task that is not so easy to manage. When you receive a Notice of Assessment from the CRA, you can seek help from experienced tax professionals so that they can guide you in the resolution of all tax audits with CRA auditors.

The auditors who conduct the CRA tax audit may make the taxpayers feel defensive. It will empower you when you gain some knowledge about the process of the CRA tax audit and about your legal rights as per the Income Tax Act. You need the help of tax professionals who focus specifically on the resolution of tax audit problems with CRA when they represent you in your CRA tax audit process.

The task of the auditor is to assess the tax dues and not to think in terms of the best interest of the taxpayers. There may be some clashes during the process of the CRA tax audit. Taking the help of tax professionals?can minimize your interactions with the auditors and it will help bring your stress levels down so that you can focus on the business at hand during your times of financial hardship. Not being able to negotiate with the auditors during a CRA tax audit can become unproductive and it may also lengthen the duration of the audit, bringing in unnecessary tax assessments and penalties.

During the CRA tax audit, the auditors may require additional information concerning your records of income and expenditure and documentation. They may also seek some answers to questions in writing. Information becomes the basis of all tax assessments. It will help you tremendously if you understand what documentation and information you have to provide to the CRA and you may have to consider your answers very carefully to the questions so that you have a strong footing during the CRA tax audit. Tax professionals?will be able to help you in understanding why the CRA auditor is asking certain questions or seeking specific information.

Spending some time with the tax professionals will help you in the preparation for the CRA tax audit and will improve your chances of an efficient resolution of the assessment. You have to remember that the CRA has broader powers so that they can request you to provide all the supporting evidence or document to sustain your tax claim. The CRA can use documents, notes and all kinds of discussions against you if they feel that they have a strong case.

The tax professionals?will help you in the review of all relevant documentation and will prepare answers to certain expected questions from the CRA auditors. They will also help in the preparation of written submissions to a CRA auditor to support your filing position and explain your stand on the tax issues of dispute during the CRA tax audit.

A tax amnesty or a Tax pardon is also referred to as a voluntary disclosure in Canada. This is a procedure which enables you to deal with income tax or General Sales Tax returns which have not been filed. It involves income which has not been reported. When you appeal for a tax amnesty, you may be able to avoid penalties, charges for income tax evasion and prosecution too.

It is always advisable to seek a professional tax representative to help you. A tax firm has experience with tackling voluntary disclosures and ?representatives can guide you through your personal or corporate tax situation.

Revenue Canada has a voluntary disclosure program which is generally known as tax amnesty or a VDP, which enables taxpayers to declare their income voluntarily and file their tax returns, which have not been filed earlier or have been filed inaccurately.

The tax amnesty program helps in the waiver of civil penalties and it may save you from criminal prosecution. The crucial thing to remember is taxpayers have to act as on voluntary basis, being fully cognizant of their legal responsibilities as per the Income Tax Act and the Excise Tax Act by reporting their tax affairs before the CRA begins to take any action or investigates against them.

All taxpayers who take the shield of the tax amnesty program will have to pay their outstanding tax amounts as assessed by the CRA along with the interest charges on the unpaid amount with the penalties waived.

Canadian non-residents can also be accommodated for the tax amnesty program and if they are able to meet certain requirements, they can extend their date of submission under Section 216 returns. The program also enables anonymous disclosure under the provision of a No-Name Policy which has been created to protect the identity of the compliant taxpayers.

If the taxpayer decides to remain incognito and confidential, he or she will be allowed to proceed with the voluntary disclosure and cannot be prosecuted up to a period of ninety days. This period of ninety days starts from the effective date of disclosure. The effective date of disclosure is established by the date the written voluntary disclosure is submitted to the CRA, whereby a receipt is given on the VDP Taxpayer Agreement Form from the tax services office.

During this period, the taxpayer will be safe from any CRA interference or charges of prosecution. This anonymity is also applicable if the income which has not been reported has been earned from offshore sources or through ambiguous or criminal activity.

To summarize, tax amnesty is applicable when there has been a failure on a taxpayer?s part to report his or her income; or if the income has been reported inaccurately with some missing information. If apply successfully, the taxpayers can enjoy the benefits of penalties free or even reduced interests treatment on their taxes.

Filing income taxes past years could be a complicated affair. It is important on your part to get the pending things done right by seeking expert help from tax accountants in Canada. It is always safer to get professional guidance if you have a tax situation which is complicated, when you own property, you earn income from several sources or when you have considerable medical expense. This becomes more complicated when you have missed out on filing your tax returns for the past few years.

You can file income taxes for past years at any time within a ten-year period. You can file these taxes at any time and also receive refunds up to ten years back if you are in Canada.

April 30 is the deadline every year for Canadians to file their personal income tax returns for the previous year. If you happen to miss out on your previous filing dates, you cannot take a decision to skip the payment altogether. This would also depend largely on whether you actually owe the tax to CRA or not.

The adage of ?death and taxes being certain? comes out true as the Canadian government wants a tax return filed even if a person ceases to exist during a tax year. In such a case, the person responsible for acting on the dead person?s behalf for his estate has to file the concerned person?s income taxes for past years by April 30^th of the following year. This is applicable unless the concerned person dies in November or December; in such a case, the tax returns are due within a period of six months from the date of death.

You have to note that if you are late in filing your income taxes past years but if you do not owe any taxes, then there will be no question of any penalties to be paid to the CRA. There will, however, be a financial hit that you will have to take. The Canadian government will hold on to any refunds that are due to you until you file your income taxes past years and there will also be a delay in getting your benefit pay-outs that you may be eligible for like the GST or Child Tax Benefits.

It is wiser to file your income taxes past years as there may be accumulated credits due to you based on your tax returns. If the government does not become aware of your income source, the credits due to you will never be sent to you. If it is determined that you owe taxes to the CRA and you decide not to pay your taxes by not filing your returns, then penalty charges will pile up against you beginning from 1^st May of every year. The interest will be charged on a compounded rate on a daily basis on the amount which is unpaid.

What are you going to do when the CRA issues an income tax or General Sales Tax Notice of Assessment or Reassessment and you feel that the Agency is in error concerning the amount of taxes you have to pay? You will have to respond by filing the CRA Notice of Objection.

Your initial step will be to ensure that you comprehend the rules about the Income Tax Act and how they apply specifically to your tax issues. Even though the rules may seem tough, they have to be applied in the correct perspective. If the rules are clear and they have been established, you may have no other option but to adhere to the amount you have to pay despite your dislike of paying those extra taxes.

On no account, you should hesitate about getting professional guidance in a situation like this. The time spent with an specialized tax expert will be worth your while in preparing yourself for the CRA Notice of Objection. You will also be in a better position to understand whether the Notice of Assessment is clear under application of the rules or if you stand a realistic chance when you object or appeal against that notice from the CRA.

The next step that you can take in collaboration with your tax counselor is to contact the CRA and request an adjustment. This could be done by filing a CRA Notice of Objection through CRA Form T400A. This form is for income tax objections. The form has to be filed before the deadline expires. The deadline provided is ninety days from the time you receive the Notice of Assessment from the CRA.

The Personal Income Tax Act has made a provision for a formal process of objection for people who are not in agreement with the Notice of Assessment sent by the CRA. The process of formal CRA Notice of Objection starts with the filing of that objection. There is an impartial review by the Appeals Office of the CRA. Matters can sometimes lead to the Federal Court or the Supreme Court of Canada.

The CRA Notice of Objection has to contain a set of reasons for the objection and must provide all relevant facts in detail to the CRA to back up the disagreement with the Notice of Assessment. All documents like invoices or stubs or letters have to support the objection and should be submitted to the CRA. A copy of the disputed Notice of Assessment has to accompany the CRA Notice of Objection.

If you want to object to more than a single assessment or determination, a separate CRA Notice of Objection has to be filed for each of the disputed assessments. If the facts or supportive documents are similar for more than one assessment, it could be indicated on each CRA Notice of Objection and one common statement of supporting facts has to be submitted.

Even if you complete and file your taxes accurately, there is still a possibility that the CRA may decide to audit your tax returns. It is wiser to seek guidance of an experienced tax accountant to offer a defense strategy for a possible CRA tax audit.

You may have vast theoretical knowledge about tax and affairs of the CRA, but many people have learnt that it is not an easy struggle to tangle with the tax people. Handling a CRA tax audit comes only through experience. The tact does not come through formal education; it comes by learning from battle field experience on first hand basis and knowing all the tricks.

While making assessments on your taxes filed, a professional tax accountant would definitely be able to come to your rescue. A CRA tax audit is a scrutiny of taxpayers? documents and records to establish the calculation of their taxes and check whether the returns have been accurately completed or if there is a potential to charge interest or penalties to the taxpayers.

A CRA tax audit is the way the government ?verifies the tax returns of Canadians to ensure that all taxes have been reported with accuracy and honesty. The CRA can also audit both GST and HST tax returns, personal income tax returns, excise taxes and the payroll documentation.

The consequence of anything going wrong on the tax returns would result in several penalties and that may include criminal prosecution. As per the CRA, an effective tax system of self-assessment could be realized through continuous inspection of individual and corporate tax returns. In the absence of a CRA tax audit, it feels that the tax system would be redundant and ineffective.

The one-on-one interaction with the CRA agent gives the opportunity for the taxpayers to get a personalized experience with the tax agency and it also creates a situation where the taxpayers need to deal with the tax agency on a subject that CRA agents have more experience and resources over taxpayers.

Experienced tax accountants are expert in their field and particularly in their working with the CRA while defending taxpayers from the tax agencies. In the case of a CRA tax audit, the tax accountants will work on behalf of the taxpayers to defend their tax returns to the CRA as they have access to the highest appeal levels. These experts will also be able to review the tax returns and the related documents of taxpayers for problem areas. They are adept at corresponding with the CRA on behalf of the taxpayers and also in scheduling and attending all CRA tax audit appointments.

The CRA can also issue a Notice of Reassessment if it feels that some taxpayers are not cleared to qualify for a credit or a deduction. The taxpayers can prepare a Notice of Objection through their accountants if they feel that the CRA has committed an error. This filing of the objection is the initial step in the process of getting a tax dispute resolved. The Notice of Objection has to be filed within a period of ninety days from the day the CRA mails its Notice of Assessment.

Individual and business taxpayers often do not file their tax returns on time or sometimes, they overstate their deductions or expenses to receive a higher refund. The tax amnesty program is the voluntary disclosure program which is designed to help these kind of taxpayers to volunteer and come forward to pay their arrears taxes with penalties which may be reduced.

There are things that you need to know about tax amnesty:

What kind of taxes qualify for the tax amnesty program in Canada?

All personal or corporate taxes that have been evaded in Canada qualify under the tax amnesty and the Voluntary Disclosure Program. They include income tax on income which has not been declared before and can even include income from even criminal activities. It will also include the general sales taxes and the HST on income which was not declared before or which was collected and not remitted.

What are the principal benefits of applying for?tax amnesty?

You may not be prosecuted. There may not be any penalties and interest may be reduced. Your case will be treated with confidentiality.

The?tax amnesty?program is to encourage people make the right decision to pay their back taxes and file their returns in arrears. In such cases, the taxpayers may be required to sign an agreement where they will have to agree to file and pay all taxes in the future, on time.

Do you need to report your back taxes through tax professionals who handle tax amnesty?

It is not mandatory but it is highly recommended. Acting on your own could lead you into tough situations with the CRA who may deny your application for tax amnesty and inflict penalties on you.

What are the penalties involved when you file late tax returns?

Filing tax returns after their due date could attract a late filing penalty of up to 17% of the taxes which are unpaid. The penalty amount can incur further interest. For those taxpayers who repeat their late filing in the succeeding years, the penalty increases to up to 50%.

Do non-Canadian residents qualify for tax amnesty program?

All residents who are non-Canadian but have a tax liability as a result of living in Canada previously or those who have Canadian source income may qualify for the tax amnesty program in Canada.

What happens in the case of not being able to produce all the records?

Absence of relevant records may not disqualify you from applying for tax amnesty and making a voluntary disclosure but you will have to establish your earnings to the best of your abilities.

What is the procedure for applying for tax amnesty?

An official written explanation has to be provided to make sure that confidentiality is maintained in the Voluntary Disclosure application with all relevant information of tax amounts which may not have been disclosed by you previously. If you seek professional help, there will be a representative who will be exclusively assigned to your case to maintain on your behalf the privileged ninety days to submit your information in detail or apply for extension period if required.

As per Section 238 of the Income Tax Act in Canada, if a person does not complete and file his or her annual tax return, that person will be found guilty of an offense of tax evasion in Canada and can look at a fine ranging from thousand dollars to even twenty five thousand dollars. In addition to this penalty, a tax court judge may also sentence the offender to a year of incarceration.

Apart from tax evasion in Canada, an individual could be penalized for an offense if that person has misled the CRA with intentional false statements while evading taxes. The specific fines for this type of tax evasion?is 50% of the total amount of taxes that have been evaded. There could also be a jail sentence for up to two years.

When you face charges of?tax evasion in Canada from the CRA, it is imperative that you consult professional tax representatives to help you in preparing your stand. Many tax firms offer free consultations with a tax consultant to self employed individuals and small business owners. The experienced and knowledgeable consultants will help people who are guilty of tax evasion Canada to familiarize them with the Canadian Income Tax Act.

Every person who has assented to making false statements in a tax return or lied concerning the amounts that are taxable is guilty of tax evasion.?It is better not to evade taxes in Canada as it is a very serious crime. Even if a person is behind in filing tax returns, it is better for that individual to come clean and resolve the tax issues.

Simply put, tax evasion in Canada is when you are not filing your tax returns regularly and not declaring your income in an attempt to hide it; you may also be claiming certain expenses or tax credits which you are not eligible or entitled to claim. The CRA takes a serious stand on all tax evaders in Canada and there is no sympathy shown to the offenders. It is their main function to collect the taxes and the interest and penalties that accrue with the unpaid taxes.

A few days back, the Financial Post reported that the CRA is aiming to cut auditors while acknowledging extreme difficulty in tracking and pulling together billions of dollars?in the form of unreported income. Certain organisational inefficiency has been identified and planned cuts have been briefed concerning the number of tax auditors despite the assurance by the government in recent months that the tax enforcement and collection would not be affected by these cuts.

It is generally a case that criminal charges for tax evasion in Canada go together with a civil assessment or a reassessment of an individual?s taxes. It is a clear fact that the person has earned more income than he or she has attempted to declare. This very failure on the part of the individual is the actual basis of the charge of tax evasion Canada. As a result of this, penalties concerning gross negligence are imposed on that individual.

The Voluntary Disclosure Program Canada is governed by the Canada Revenue Agency (CRA). This program is compliant with the tax laws of Canada. You can go forward and rectify your tax issues through the Voluntary Disclosure Program Canada.

The disclosure is filed to rectify the incomplete or inaccurate information that may have been given previously to the CRA. The Voluntary Disclosure Program Canada includes all that information that you may have previously reported which you deemed later was complete or accurate.

All taxpayers in Canada can make a voluntary disclosure. You can be a business or a trust, an individual, resident, ?non-resident or an employer. You can authorize a representative to submit a voluntary Disclosure?on your behalf.

Some of the typical information that is reported through the?Voluntary Disclosure Program Canada may be source deductions which have not been reported or it may be personal and business earnings which may not have been reported from all sources that are within or outside of Canada. The Voluntary Disclosure Program?may also include income tax returns which are filed late through the T1 and T2 forms. It may also include all those expenses that you were not eligible to claim including the GST or HST omissions.

Through, a voluntary and valid disclosure with the CRA, you would end up paying only those taxes that you owe along with the interest. Penalties could be avoided and so can be the possible prosecution through the information given under the Voluntary Disclosure Program in Canada.

A disclosure to be valid has to meet certain conditions. Such as, it has to be a voluntary disclosure. It has to be made before you are notified of any compliant action that may be initiated by the CRA. The Voluntary Disclosure Program Canada has to include information which is more than a year overdue. The information has to be complete, supporting the disclosure submission. The Voluntary Disclosure Program Canada has to be submitted through Form RC199. It must involve penalties for Voluntary Disclosure Program to apply, etc.

You can receive the benefits of the Voluntary Disclosure Program Canada for the information provided by you and disclosed on the effective date of disclosure which is the date the CRA receives your form and stamps the acknowledgment.

Once the CRA receives your submission, it will keep you advised in writing of its decision either to accept or reject the disclosure. If you feel that the decision was not a fair one, you can ask for a second review of the file. If your original disclosure was rejected as you were not able to provide the requested information within the specified time frame, then the CRA will not accept your request even for a second review.

Through the Voluntary Disclosure Program Canada, you can even make a disclosure anonymously and this procedure is known as the `no-name? process. You have to identify yourself, however, in a period of three months.

There is no limit assigned as to the period the voluntary disclosure program Canada may request information for. If you have not been able to file for many years, then you are expected to bring all the tax years up to date.

If you file your income tax returns late, it can cost you a lot of money in Canada. The CRA will charge you tax penalties and interest Canada on the amount of tax which is unpaid if you owe them income taxes and file your returns late. It is better to file on time even if you are missing some information to avoid tax penalties and interest Canada. Changes can be filed to the income tax returns at a later date.

If you have an unpaid tax balance for the current year, daily interest is charged on a compound basis with effect from 1^st?May next year. This will include all balances that you owe when the returns are reassessed. Additionally, interest will be charged on the penalties beginning with the day that your return falls due. The rate of tax penalties and interest Canada can change once in three months.

If there is any amount that is due from the previous years, compounded daily interest will be charged on those figures. The payments that are made by you are applied initially to the amounts that are owed from the previous years. Tax penalties and interest Canada may be cancelled or it can be waived in extraordinary circumstances or if financial hardship is proven.

Tax penalties and interest Canada for late filing will be 5% for the balance due for the current year and an additional 1% for the balance due for each month that your tax returns become late up to a maximum of one year with a maximum penalty of 17%. If there is a late filing penalty for the past three years, then the penalty is 10% with an additional 2% for each full month that your return is late. It is always better to avoid the penalty for late filing by filing your tax returns on time even if you are not able to pay the full amount of the tax balance on or before 30^th April 2014.

In case of penalties, the requests that are related to the tax years ending in any of the ten calendar years before the period in which you request may be considered. To cite an example, a request that is made in the current year of 2014 has to relate to a penalty for the year 2004 or a later tax year.

There is a penalty involved if it is proved that intentionally or due to negligence you have made a false statement or an omission on your tax returns. The tax penalties and interest Canada in such cases will be equal or greater of one hundred dollars or half of the understated tax or the overstated credits that are related to the false statements and omissions. However, this penalty could be waived if you make a voluntary disclosure about amounts which you failed to report or about any credits which you have overstated.

The theory of increased tax penalties and interest Canada is now fixed in the Income Tax Act. People just cannot forget the interest that could be levied if they fail to submit the correct amount of income tax installments.

Do you understand the process of garnishment? It is a legal procedure where a creditor may require a third party to turn over the bank accounts or the wages of the taxpayer. When you miss paying your taxes by CRA deadlines, you may face an CRA income garnishment. It allows CRA to seize your wages legally. It can also garnish all the money you have in your bank accounts or other assets that you may own until your tax owing is repaid in full.

A court order is not always required when it comes to an income garnishment. There are two distinct situations where a court order may not be required for income garnishment. The first situation is when a person assigns his or her wages to a credit union body. The second situation is when a person owes taxes which are unpaid to the CRA. In such cases, the CRA has the right to caution your employers directly and require the wages to be garnished.

When does the case of a wage levy arise? A wage levy is almost like an income garnishment. This action can be enforced and initiated by the CRA against a person for back taxes. In the case of  income garnishment or a wage levy, the employer will receive the garnishment order notice. The employer is clearly required under the law to keep back the amount which has been specified in the garnishment order from the wages of the tax taxpayer.

In Ontario, the maximum amount of your wages that can fall under income garnishment is half of your gross monthly salary as per the Ontario Wages Act. Under this Wages Act, the social assistance, employment insurance and the pension payments cannot be touched under garnishment. This just cannot happen even if the funds are deposited into a specified account at particular financial institutions.

To handle a CRA income garnishment, you need professional help from a tax representative in order to stop a wage levy or a garnishment. You will be protected if you have an owing solution that is legally binding and which comes under the protection of the tax courts. People have two options to annul a CRA income garnishment so that all future activity pertaining to collections may be prohibited. The first option for an income garnishment to be revoked is to declare bankruptcy. The second alternative  is to go the route of the consumer proposal. In this case, all the assets that you have are confined for repayment in order to reduced the amount you owe over a period not exceeding five years.

Some professional tax consultants negotiate with the CRA on your behalf and come up with a payment plan that may be fair to both sides and one which is within your payment capacity. A payment plan can be worked out with low monthly payments to avoid a CRA income garnishment .

Handling a CRA tax dispute and appeal process can be a stressful task for many small business owners and individuals in Canada. Understanding the Canadian?tax appeal ?process can help you with your rights in your disputes with the CRA. The tax system in Canada is a self reporting one. The objective of the annual tax return is to report the amount of tax you owe to the CRA accurately every year. CRA will agree or dispute after processing your tax returns. All disputes will be notified to the taxpayer through a Notice of Assessment which is sent few weeks after the filing of the tax returns.

CRA may ask for more information and audit the taxpayer concerning the tax obligations. Post audit, the CRA may agree or disagree with your justifications. In the case of disagreement, the CRA auditor will issue a Proposal Letter outlining the position of the CRA. If the taxpayer disputes the amount in the Notice of Reassessment, then he or she can `object? through a Canadian?tax appeal?to the Agency Appeals division of the CRA.

An Appeals Officer from the CRA Appeals Division will be assigned to your case. The Appeals Officer could vacate or cancel the reassessment after hearing you out or may confirm by keeping it intact or varying it. You may wish to go through with a Canadian?tax appeal ?after the decision of the Appeals Officer by approaching the Tax Court of Canada.

The Canadian?tax appeal?program is responsible for offering a consistent and timely process of review. It has been set up to offer taxpayers with an impartial review process of their tax situation. However, a considerable increase in tax planning on an aggressive basis has had an impact on the ability of the CRA to resolve the tax disputes in a timely fashion.

The Canadian?tax appeal?process involves decisions from the CRA which may be categorized into thirteen different types by the Appeals Branch. The delays in the Canadian?tax appeal?process may be attributed to an increase in the contested decisions and their volume since the past six years.

If the taxpayer feels that the Tax Court of Canada has still made an error in the judgment, he or she has a limited right in the Canadian?tax appeal process to approach the Federal Court of Appeals within a month of the decision pronounced by the Tax Court judge. Dissatisfied taxpayers can even apply ?to the Supreme Court of Canada for further appeal. It may be rather expensive and more complex than what a taxpayer thinks.

It is always safer to seek professional help when planning a Canadian?tax appeal in Toronto to make matters simpler for yourself. The Canadian?tax appeal?system has been devised to offer an elementary framework of the entire process but it also involves stringent deadlines and has few pitfalls. It is wiser on the part of a taxpayer to consult a tax accountant or a tax representative at their earliest convenience when facing a tax dispute with the CRA.

In Toronto, all kinds of taxpayers will be able to benefit through the expertise of a tax accountant Toronto when they hire him or her. There are certain things that you could get to know before you hire a tax accountant Toronto so that you are protected and also find the right professional in the bargain.

You have to be focused on what exactly you need your tax accountant Toronto to accomplish on your behalf. The principal reasons why you will benefit through the expertise offered by a tax accountant Toronto are:

• It is quite stressful and time consuming to prepare your own tax returns and file them.
• You can ensure that your tax returns would be accurately compiled.
• You will be able to get special tips and advice from a tax accountant Toronto.
• Your ultimate aim is to pay as little taxes as you possibly could and for this end, you will need meticulous planning and advice from a tax accountant Toronto.
• A tax accountant Toronto will help you face your tax problems by filing your taxes in arrears, paying off your tax or handling a CRA tax audit.

You can begin your search for an experienced tax accountant Toronto by looking for one who is a specialist in the areas that you require help in. How do you look around? You can get referrals from your family, friends or business colleagues. A person who is in a similar tax situation to yours will be able to give right referrals for a tax accountant Toronto.

Local and independent tax firms specialize in the tax requirements of an individual and small business corporations in their neighborhood. One tax accountant Toronto may be more experienced than the other. Specialized specialist will tend to specialize in a particular area like tax audits, business consulting or tax accounting. They are proficient at accounting work which is of a complex nature.

The tax scene is in a state of constant change and is subject to federal regulations. Before you hire a tax accountant Toronto, you may check for their reputation and client review. You have to find out the area of specialization and how long that tax accountant Toronto has been in the tax business. You have to be confident that the tax accountant Toronto has the necessary experience and the knowledge to handle your specific tax situation. You have to be clear on whether your work is outsourced to someone else. You have to understand the process of review and whatever goes on behind the preparation of filing your tax returns.

A tax accountant Toronto may come from a varied background and may have different attitudes about the tax systems in Canada. The ultimate aim of a tax accountant Toronto should be to minimize the taxes that are paid by his or her clients, besides coming to grips with the complexities of the tax codes.

Once registered as corporation, all Canadian businesses except?registered charity?are required to file corporation income taxes regardless of the status of the business operation. As all corporations are distinct legal entities, they have to complete and file a T2 Canadian?Corporation Income Tax return?every year.

There are two types of returns forms to choose from: Simplified or corporation income tax short form T2 short form or regular corporation tax form or regular T2.

Simplified Corporation Income Tax applies to all corporations with a T2 Short Return Form if they are a Canadian controlled private corporation through the tax period. The corporation could have made no income or had a loss for the purpose of income tax reporting. The corporation also need to operate only in one jurisdiction, such as one single province. The corporation can not claim any refundable tax credits excluding the refund of over paid installments. For a T2 Short Return Form, it is also mandatory that the corporation does not deal with taxable dividends transaction during the tax year. ?In absence of all these conditions, a corporation has to file a regular T2 Canadian?Corporation Income Tax?Return.

Since the corporation income tax is much more complex than the T1 Personal Income Tax Return, it is recommended that the?Corporation Income Tax filings be prepared by experienced and professional tax preparers as completion of a T2?Corporation Income Tax Toronto?form will require usage of the General Index of Financial Information (GIFI).

Canadian Corporation Income Tax?has to be filed within half a year of the end of the fiscal year. If the year-end date for filing taxes is December 31, it has to be filed before June 30 of the following year.

Canadian?Corporation Income Tax?can be filed electronically through an e-file and this applies to even non-resident corporations. If a corporation has any balance outstanding due on its corporate income tax account, that balance has to be paid within a period of two months after the tax year end.

For Canadian corporations who want to claim the small business deductions when filing Canadian?corporation income tax , the net tax rate with effect from January 2012 has been 15%. The corporation is a preferred business structure form in Canadian business world. This is because the limited liability protection the corporation offers as against a sole proprietorship entity. Canadian corporations are taxed slightly differently than the other business categories when filing?Canadian?corporation income tax.

The important tax change when considering Canadian?corporation income tax?is that the corporation is a legal entity within its own rights and is taxed separately from individual proprietorship. There are different kinds of corporations in Canada. The type will determine whether or not a corporation can claim certain deductions and rates.

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 the mind anxious feelings even among those taxpayers whose tax documents may be in perfect order. A tax audit may can 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. Mostly, the 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 are ?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 eligible 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 are in a position to earn enough to be require on 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 envelop 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 giving 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 this issues and arrive at exactly what is it 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 theCRA, 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 CRAis 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 that 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 month 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 problem for Toronto taxpayers or other region taxpayers is the 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 and 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 theCRAmay 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 inCanada. 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. An specialized tax accountant can help you to negotiate a tax payment plan that can be agreed upon and mutually beneficial to both and theCRA.

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 has 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 CRAtax 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 general sales 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.

When you owe Canada Revenue Agency or the CRA large sum of taxes that is beyond your financial means to pay off, it maybe time to consider CRA taxpayer relief.  In the application of such relief, experienced Toronto tax consultants can play important roles concerning CRA taxpayer relief. There are many small business enterprise owners who have gone bankrupt because of the seriousness of their tax owing. It is not easy to manage the interest and prohibitive penalty costs.

CRA will try their absolute best to recover all the taxes that they can from the taxpayers. You will have to work closely with a Toronto tax consultant to know what kind of CRA tax relief you are eligible for and what steps you will have to take in reduction of the tax damages. A Toronto tax consultant is going to advise his or her clients to prospect all they can towards tax savings and try to reduce their tax liability for every dollar. The interest and the penalties are sometimes as large as the original tax principal amount.

When you contact a Toronto tax consultant, you will have to give all details concerning your tax issues and find out the possible outcome of the steps that you are going to take in applying for CRA taxpayer relief program. There is no room for procrastination when it comes to dealing with CRA. The more you delay, the worse the things are going to become. It is wiser to take action well in time rather than pushing it for a later time.

A Toronto tax consultant would be able to advise you that the Canada Revenue Agency would offer CRA taxpayer relief if you are not in a position to fulfill your tax obligations as a direct result of uncontrollable force majeure events such as in the case of flooding or fire. Businesses who have not been able to file their income tax returns before the due dates, as a result of flooding, can apply through CRA taxpayer relief to have their penalties and interest waived.

The Canada Revenue Agency may waive the penalties and interest if any natural disasters have caused difficulties for taxpayers who may have been affected by them. CRA is aware that the main concern of the affected people during such catastrophic natural events would be their home and families. This is allowed on the basis of circumstances that go beyond the control of taxpayers. All those individuals and owners of businesses will find themselves eligible for CRA taxpayer relief if they are not able to meet their payment or filing obligations by the due date passed.

The CRA taxpayer relief is a well defined process to help the taxpayers in resolving their tax problems that are a direct result of happenings which are beyond their control. The CRA considers the relief requests on a case by case basis.

Contact Tax SOS tax consultant, we are well equipped with knowledge and experiences of helping taxpayers with CRA taxpayer relief program and achieved great success.  Call us for a free consultation at 1-877-982-9767 and take the step to reduce your tax liability today.

If you have not paid your taxes and not negotiated a delayed payment plan with CRA, it can take steps of enforcement against you such as CRA income garnishment. The CRA does not even need to go to court for that. This is a big power that has been vested in the CRA. Any other creditor has to arrange a court order before he or she is able to take any enforcement action against you.
The CRA does not require giving you any warning or procuring a court order to go after you. The first step in the enforcement plan is to impose CRA income?garnishments. Once the income?garnishments are enforced, there is not much you can do to lift that enforcement by yourself. You could be in severe financial hardship or your business may struggle. It will not matter at all as CRA will go through with the enforcement.
It is always wiser to allow a professional?tax consultant to handle your tax filing and related cases. The?professional?tax consultant?will be able to negotiate, as a routine, any removal or reduction of the enforcement measures. The CRA is entitled to impose income?garnishments up to fifty per cent of your earnings and up to the entire amount of a sub-contractor income. This can result in a major financial disruption and can cause plenty of damage to a business organization.
Your bank account also could be frozen in additional to CRA income garnishment. When the Canada Revenue Agency freezes your bank account, they will send you a letter which is known as `Requirement to Pay’. This letter indicates the amount of tax owed and the terms of payment. The letter will also direct your bank, through a copy, to freeze your account. Your funds will be then held as frozen for a selected time period and then forwarded to the CRA. This will leave you totally stranded as you will not be able to pay your bills nor will be able to conduct your business.
The professional tax consultant?will be able to help you lift this CRA income garnishment. If you have assets in the form of property, the CRA can also register a lien against your property at any time they so desire if the taxes are not paid. You will not be able to sell your property or get your home refinanced until you have taken care of the lien and resolved your tax issues as all current mortgage holders will also be informed of the lien.
The CRA can use more than one enforcement action against a tax payer. If a tax payer owes larger taxes, in addition to CRA income garnishment, the CRA could also freeze the bank accounts and also place a lien on the tax payer’s property. Therefore, it is better to organize your paper works and take the help of tax consultants in planning out your tax payments. The tax consultant?will help you take advantage of various rules that are updated on a regular basis to enable you to stay feasible under your tax payments or those payments into the next assessment period.

If you are living in Toronto and face some tax problems with the CRA (Canada Revenue Agency) , such as unfiled tax returns or tax owing,  a Toronto tax accountant can guide you in resolving your tax problem effectively.

The Income Tax Act is complete with income exclusion rules, important tax credits and rules on investment that could be missed out if you are trying to file your taxes by yourself. If there is no sufficient knowledge and experience, it may end up with miscalculations and cause back fire few years down the road when CRA catches the mistakes. The CRA’s penalties and interests can amount to the thousands. Tax service with a Toronto tax accountant can become a powerful resource in saving that money.

If you have filed tax returns and are owing taxes to the CRA, you may want to negotiate with the CRA for a tax payment plan before any legal actions taken by CRA collection agents, there are a couple of things that you have to keep in your mind. First, you are dealing with a bureaucratic set up when it comes to CRA collection that means time consuming dealing with CRA.  The second thing that you have to keep in mind is that you cannot rub the Toronto CRA on the wrong side. Getting help from specialized Toronto Tax Accountants can help you dealing with CRA with much greater chance of success.

You have to be armed with a reasonable plan of defense when it comes to negotiating with a CRA collection agent. The Toronto CRA may accept a payment plan if you are not in a position to pay your taxes in full. The most important step you can take in this direction is to get help from specialized Toronto tax accountants who will help you get all relevant documents ready to prove that you cannot pay the tax in full.

A Toronto tax accountant can help you to prepare proof to show that you do not have any assets or sufficient savings to pay your taxes. The agent will also take into account that you do not have any collateral which you could pledge against while taking a loan to pay your taxes.  Specialized Toronto tax accountant will help you to compile a list of all assets that you possess which could be deemed as possible collateral by the financial institutions against a loan made out to you. If you have enough savings or assets, then you have to prove to CRA, that it is not going to be convenient to liquidate your assets to pay off the taxes, with a plausible explanation. Tax accountants can help with a successful tax payment plan to avoid further legal actions from CRA collection agents.

Before you prepare your CRA tax payment plan, you need to work out the time you will require to pay off your full tax. You can break down your total tax owing and arrive at a figure that you can pay every month. After that, your tax consultant will start the negotiation with CRA to convince them why the monthly payment proposed is a reasonable one. It will be a back and forth negotiation process. The bottom line is CRA wants to collect the tax as soon as possible; you on the other hand, need to pay affordable amount without adding financial stress. You can begin your calculations of the tax portion by normally going over your assessment notice. 

As aforementioned, CRA tax payment plan is not usually granted at the first attempt. You have to spend considerable time working with your tax consultant in the preparation of a viable application so that you can justify to the CRA on why they should allow you to pay your taxes in installments.

The CRA has Income /Expense or a Net worth Statement that they like people to use when they are working out their  CRA tax payment plan. It will be better on your tax consultant’s part to submit to the CRA the current statement for mortgages, credit card bills, loans or any other kinds of liabilities that you may have. Bank statement, credit card statement and stubs will be required as proof to show that you have submitted accurate figures in your Toronto tax payment plan negotiation proposal. Your Credit Report will also help in your Toronto CRA tax payment plan negotiation. It will go on to show that you are not concealing anything and that your payment plan proposal is genuine and that you cannot pay more than that on a monthly basis.

Payment arrangements for your tax payment plan negotiation with CRA could be quite complicated. When you submit your proposal, there may be one CRA agent who is handling your case but there is likelihood that after few weeks, you may find some other agents attending to your case with a totally different outlook and you may have to ask your tax consultant to start the convincing game once again with this other agent. Once your payment negotiation arrangement has been accepted by the CRA for the whole period you have proposed, your tax consultant can also consider putting in an application for Taxpayer Relief. It is a process that prompts CRA to use their discretion and consider canceling or waiving your tax account’s interest charges.

Once the CRA tax payment is approved, it is important to obtain a written agreement with CRA. Typically a confirmation letter from the CRA agent is sufficient. This is to make sure CRA has that tax payment plan recorded in their system to avoid newly assigned collection agents knocking on your door asking for the whole payment again.