Having resources such as guides to turn to when it comes to running a business is a valuable resource but what has to be remembered is that this type of additional help is an extra resource and should only be relied on as partial help. The same holds true for the Small Business Tax Guide that is published by CRA.
Anything that has to do with laws and regulations is usually complex and difficult to fully understand. This is the reason that CRA publishes tax guides to assist tax payers with any type of filings or rules that they must abide by when it comes to their taxes. Many people use these guides as the only resource for meeting all the tax requirements.
Business tax guides are a condensed version of the full tax laws that the Canadian business owner has to abide by. Being as they are condensed it means that you are not getting the full detailed version of what each and every tax law is really all about. This is why it is wise to use these types of guides for your basic understanding but also rely on the expertise of Toronto Chartered Accountant and when necessary a Toronto tax lawyer.
When your Toronto tax accountant creates your financial statements for you he relies on the financial information that you are providing him with, plus his knowledge of the tax regulations. His knowledge of these regulations comes from the full version of the law and not just the condensed version. As a result of this he is able to give you advice on how to apply each of these tax laws to your best advantage. This is often information that you don’t receive in totality in the Canadian tax guides.
It has to be remembered that applying any type of laws is based on interpretation. Not all tax laws are totally clear. If that were the case then there would be no need for Toronto tax accountants or Toronto tax lawyers. There wouldn’t be near the number of appeals that are presented to CRA each year or as many tax cases before the courts.
The best way to make use of CRA Tax Guides for Business and bulletins is to read them thoroughly so you have a basic understanding of them. Discuss them with your Toronto tax accountant if you are not sure if they apply to you, or if you have any questions.
As a Toronto Chartered Accountant I ensure that I discuss the pertinent tax laws and regulations as they pertain to my client’s business. This way they have the opportunity to utilize what tax breaks may be available to them, as well as ensure they are following the Canadian tax regulations for their business properly. If you have a small to medium sized business and are in need of some accounting services be sure to give me a call at (416)398-1700.
