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Vancouver Chartered Professional Accountants Warn That Self-Filing Can Be Seen as a Red Flag for the CRA
VANCOUVER, BC --(Marketwired - February 25, 2016) - Mew + Company, a firm of chartered professional accountants in Vancouver, have some important advice with tax time looming around the corner. Self-filing your taxes can draw the scrutiny of the Canadian Revenue Agency (CRA). For more information, go to: http://www.mewco.ca/tax/blog/
It's no secret that the Canadian government and the CRA have recently been finding new ways to raise revenue, states the blog. Recently, the CRA has devoted more resources towards identifying common filing errors in order to reassess additional taxes, interest and penalties to taxpayers. Statistically, the CRA is aware that returns prepared by an unlicensed professional are more likely to contain errors.
There are many reasons why a taxpayer may be audited or reassessed. The most common reason for reassessment is an honest filing error. Sometimes, despite all of our care and attention, an income slip is missing or a donation slip cannot be located. Other times, the taxpayer may not have kept a mileage log or tracked all of the clients they took out for meals or entertainment, resulting in the denial of these deductions and a tax reassessment. Generally, these errors do not result in penalties.
Another common reason for reassessment is a lack of understanding of the tax laws. For example, the CRA has specific rules on the types of expenses that are deductible, depending on the type of employment income a taxpayer earns. For example, realtors are able to deduct a wide range of expenses while investment advisors are limited in their deductions. A bank manager would be even more limited in the deductibility of their employment expenses. Not understanding allowable expenses and being overly aggressive in what is deducted can lead to reassessments following an audit.
Taxpayers who continue to ignore the CRA's requests to provide outstanding tax or information returns will not get an audit call. Instead, their bank accounts will be garnished or frozen until they report completely and truthfully to the CRA. Whether you are a Canadian resident or a non-resident with a Canadian income, your filing and reporting obligations cannot be ignored.
If you are audited, a professional accounting firm can help ensure you are treated fairly by the CRA. Or better yet, work with a knowledgeable firm from the beginning, and minimize the possibility of an audit by the CRA.
About the Company
Mew + Company Vancouver, is an ideal solution to the taxation problem. With their simple philosophy of building long-lasting customer relationships, the company has been serving corporate clients in a variety of fields-including restaurants, real estate, retail, and the service industry. Investing in their specialist services will undoubtedly be fruitful for all kinds of clients.
To learn more about Mew + Company Chartered Professional Accountants and discuss their accounting services, log on to http://mewco.ca/
Lilly Woo, CPA, CA, CFE, CFP
Mew + Company Chartered Professional Accountants
Company Website: http://www.mewco.ca