Month: November 2018

Can You Deal With The CRA Audit And The Steps Needed To Be Followed After Effectively?

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CRA or Canada Revenue Agency is the government organization that keeps a tab on your income and tax responsibilities. If they think that you have been less than truthful or trying to dupe the authorities or simply not following the rules and regulations properly, they can create a huge problem for both individuals and businesses alike. As the owner of a small or medium-sized business, it is important that you keep a clear tab on the expenses and earning of the business and also proper preparation to deal with the CRA tax audit if you are notified about the same. It is possible that you may not come under the radar of CRA in this financial year, but it is not guaranteed that it won’t be happening in the coming years. So, remaining informed about the CRA Tax Audits, Problems & Representation will be a smart move indeed.

Some Information On The Subject – If you have received a notice regarding the CRA tax audit, then there is no need to panic. You need to first make sure that every receipt regarding every expense and purchase an all the required papers are ready. If there is something wrong with the records you do not have the required documents, then things can get really ugly for you, otherwise, there is no reason to worry. The first thing you need to know that the CRA or Canada Revenue Agency is not going to come to your office one day suddenly and ask for all the financial records of your business. You will first be notified about the audit and informed about the date and time of the audit happening.

It is possible that you will have to take all the records and visit their office for the audit, but in most of the cases, representatives are sent to your office to conduct the audit. Once the audit is done, your records will be submitted and the authority will go through that. If they find no discrepancies and are satisfied with the information you have provided then you will get the results back and there won’t be anything to worry about. On the other hand, if something is discovered and CRA is not satisfied with the financial records you provide, then you will have to pay the fine. You will be informed about the fine and the amount payable as well. This may seem to be the end of the things, but that is no true. If you are not satisfied with the audit and think there are problems, then you can fight the decision of the CRA and ask for reassessment as well. There are professionals who will be able to help and represent you in the court. All you need to do is gather information on CRA Tax Audits, Problems & Representation, work carefully, understand the requirement of legal representation, and make the right decisions at the right time. Hence, dealing with CRA audit and the aftermath will become easier.

Can You Trust Your Business Advisor To Help Your Business Function Within A Budget?

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Running a business successfully, notwithstanding the size, is one of the toughest jobs and being the owner of a business, it is your responsibility. If you are wondering about the ways in which the business can be run smoothly, then professional help is an effective solution. There are various types of professional help available for a business, including outsourcing some areas. If you are not keen on the concept of outsourcing, then hiring experienced professionals to manage certain areas will be the smartest decision. Choosing one of the most capable Business Advisors to help should be at the top of the list.

The Responsibilities – It is the job of a business advisor to help a business in various ways including financial matters. One of the most important things about a business and it’s financial is running things within a budget. The general consensus regarding running a business is that the budget is not that important to run it. You need some money to start the process and then it is all about selling the products or services and earning the money. If you are thinking in the same vein, then it is time to gain a better understanding of the subject.

Gathering Information and Understanding – This way, you will be able to understand the importance and requirement of budget in a business. Apart from the initial and recurrent funding, another source of money for a business is the profit earned by selling products and services. If proper planning is not done and implemented, then managing the business and continuing its success will become quite tough. If you do not want to face such complications, then it is time to hire someone who will be able to create an effective budget under which your business can function properly and profitably.

When you are hiring one of the available Business Advisors to help your business, he/she will need to gain a clear idea about the business. This will include knowing about the financial details as well. If not given the information, it will be quite impossible for the advisor to help the business effectively. So, when the hired professional is already aware of the financial details of your business, allowing him/her to create a suitable and effective budget will make sense. The professional in question is both capable and experienced to provide the services you require. So, you can trust your business advisor to create a budget to help your business.

Things to Know for Claiming Tax Benefits Related to Vehicle Expenses

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How do you use your vehicle? Do you use it both for personal and business purposes? If yes, it is imperative that you record the information related to your vehicle so you can refer to it while filing your taxes in future.

The CRA’s approach with regard to the official use of vehicles for business purposes is simple: it classifies the use under two heads namely, incorporated business and unincorporated business.

Incorporated Business

It is possible on the part of an incorporated business to write of motor vehicle expenses provided its use is reasonable. The reasonable use of a vehicle refers to its utilization by either an employee or a shareholder of a company for non-official or personal purposes.

In these scenarios, a taxpayer is eligible for a taxable benefit which is usually added to their income. At the time of considering or reviewing a request for a tax benefit, there is every possibility that the CRA will examine the relevant documents. So, it is strongly recommended that you should keep all the documents handy so as to produce them, if required, in a timely manner.

Unincorporated Business

There is a slight variation in the rule in the case of unincorporated businesses. If the motor vehicle expenses linked to business use appears to be reasonable in the eye of the concerned authorities of the CRA, it can consider deducting or writing them off.

There is an additional condition, though. In view of the likelihood that a vehicle can be used for both business and personal purposes in this form of business, the CRA will only write off the part which is linked to the business use. The following example will make it clear.

If 30% of the usage of a vehicle was for personal purposes and 70% of it was for business-related activities, you would be allowed to claim a tax benefit on the latter.

What Is Allowed In The Tax Expenses?

If you have taken a loan to purchase an automobile or have spent on capital cost allowance, fuel oil, maintenance, insurance costs, repairs, car washes or operating expenses, you are eligible for claiming motor vehicle expenses.

As far as the parking costs are concerned, the CRA takes only the expenses related to business use into consideration.

Get In Touch With Us For Help Regarding Vehicle Expenses

It can be a little tricky to work out the vehicular expenses on your own by factoring in all the permutations and combinations. Let our business advisors in North York, Ontario help you with this.

When it comes to tax, timely action can save you time, hassle and money. Do not keep it unfinished for future. Reach out to us for help or assistance in this regard.