The Canada Revenue Agency (CRA) makes every effort to put out bulletins and pamphlets for individuals and businesses to better understand the tax laws, and the public’s obligations to these laws. Like any rules and regulations the actual laws for taxation in Canada are complex and difficult to understand for the general public. This is one of the reasons why having a Toronto tax accountant is a good idea.
For the general public a good example of a CRA publication that is well used is the general yearly tax guide that is available with the yearly tax return forms. This guide is what the majority of people who are doing their own taxes follow. Then there are several small business tax guides as well.
While these are a great resource for tax payers to refer to the most important thing to remember is that they are not the actual tax laws in themselves. They are an interpretation of the laws written in layman’s terms. While a Toronto accountant will rely on these publications for guidance these tax experts will resort to the actual tax laws themselves if there is a discrepancy in a tax payers return that could be more complex than what the guides are giving for explanations.
Being as the laws are so complex it really is ideal to put your tax matters into the hands of professionals who know how to use all of the resources that are available to them. It is important to remember that if your tax accountant files your taxes following the guidelines of a specific tax law and CRA rejects this because they feel that the law has not been applied properly, then there is further action that can be taken. In a scenario such as this it means that CRA has interpreted the specific law one way and your tax accountant another way. In this case it would then be up to a Tax Lawyer to determine which was the right interpretation. If he felt the tax accountant was correct and there was case law to support this then he would appeal the decision of the CRA. If the appeal was denied the tax attorney could decide to take the matter before the courts.
To get your best tax breaks and insure that you are staying totally within the tax laws you should read the CRA tax guides and bulletins as they relate to you. Then have your Toronto tax accountant prepare your taxes for you. This way you have a professional who has the expertise in tax laws and filings. You also have a good understanding of what your tax accountant is discussing with you about your tax return, because you have learned the basics from the CRA tax bulletins and pamphlets.
As a Toronto accountant I would be pleased to attend to your tax matters for you. Don’t leave your tax concerns to tax filing time. There are a lot of things you can do throughout the year to prepare for tax season which could save you money. Call now at 416-398-1700 for a free consultation.
