Tax Misconceptions That Could Get You Into Trouble
During tax season it is the time where most everyone is looking for some type of tax break. As a result of this they can become vulnerable to scams and misconceptions about tax obligations.
No doubt you have noticed many new temporary tax offices opening up that are offering you great tax savings related to your tax preparation. In other posts we have warned about being very cautious as to who you hire as a tax preparer, to do your taxes for you. Perhaps you think that because you have a fairly basic tax return obligation, that using a Toronto accountant to prepare this for you, is almost an over kill.
What you may not realize is that these professionals are highly trained and are more than willing to prepare almost any type of tax return at a reasonable price. The first step to getting your taxes done right is to have them completed by an individual who is well versed in the tax laws and is trustworthy.
Aside from this you will most likely come across individuals who challenge the validity of the tax laws, and may even tell you that they are unconstitutional and therefore you do not have to abide by them. It is a big mistake to listen to this type of talk as it could get you into trouble with the tax regulators if you should follow what these individuals are suggesting, which may be to simply ignore the Canada tax rulings.
Others will tell you that filing and paying taxes is optional and not law. This again is a dangerous misconception. Everyone is compelled to follow the Canada tax laws according to their specific situation.
There are many different types of individuals who are adamant that the tax laws that are in place do not have to be abided by for several different reasons. Some of them are relying on information in out of date laws, or laws that go many years and have since been replaced. Unless you are a lawyer and are prepared to challenge the tax rules in a court of law, then it would be unwise to follow any of the directions given by people who are not qualified to represent Canadian tax law.
If you have an issue with your taxes and your obligations you can take this up directly with the Canada tax department. To assist you make use of the expertise of a qualified tax accountant. This way you are not going to get yourself into tax trouble based on the wrong information.