Any encounter with the CRA is not usually a pleasant one, and the majority of people just dread having to have any dealings with this Government department outside of completing their taxes on time. When one hears talk of tax pardons or tax amnesty then it gives a glimmer of hope that maybe having issues such as voluntary tax disclosures to deal with may not be so bad. As a Toronto Chartered Accountant this type of reaction is something that is commonly seen with my new clients.
One of the big questions is does a small business or even a personal tax payer need the help of a Chartered Accountant if they are going to be making a voluntary disclosure? First it’s helpful to understand just what this “fairness program” as it is referred to by CRA is all about. You will find my article on Voluntary Disclosure/Tax Pardons useful in giving you a better insight about this.
Some clients feel that because they are going to be entering into a disclosure and this is an admittance of breaking the tax laws whether intentionally or not, that they should automatically seek out the services of a tax lawyer. This in many cases is not necessary, but using the services of a Toronto Chartered Accountant can be really beneficial. When I, as an accountant in Toronto provide this service for my clients my priority is to ensure that they are providing the right information, and that they are indeed making a full disclosure and not only submitting partial information. It is easy for a small business owner not to fully understand what documentation may be required. As a result of an incomplete disclosure it can open the doors for CRA to deny your disclosure. If this happens then you could be held liable for the penalties and interest that apply to your particular tax issue.
Another problem that often arises is that small business owners have been asked subjected to some type of tax enforcement and then decide to come forward with a voluntary disclosure. At this point it is too late for this type of recourse. However, it is not too late to utilize the services of a Toronto Chartered Accountant to get your financials in order and then review the opportunity to apply for tax relief under compassion circumstances which may still be an option.
While the CRA rules and regulations apply to every personal tax payer and every Toronto small business, each tax case is still unique based on individual circumstance. As your Toronto Chartered Accountant I would take on the responsibility of making sure your tax presentations are made in the best format possible so you are within the tax laws. Fill in the form here on the right or call me at (416) 398-1700 for a no obligation consultation.
