Frequently Asked Questions

We offer the following services to our clients:

• Personal & Corporate Taxation
• Accounting & Auditing
• Forensic & Investigative Accounting
• Business Consulting
• Mergers & Acquisitions

Yes, please call us at 905-625-1223 to set up an appointment with us.

Individual tax returns for the current year must be filed by April 30 of the following year.

The due date to file your corporate income tax return is six (6) months after your corporation’s year end.

For example, if you have a

December 31st year-end   –> Return is due June 30^th of the following year.

March 31st year-end    –>   Return is due September 30^th.

The due date for a CCPC claiming small business deduction whose taxable income is less than $500,000 is 3 months following the corporation’s year-end.

For all other corporations, the due date is 2 months following their year-end.

The answer depends mainly on whether you owe taxes or not. If you’re late filing and don’t owe                                       taxes then you won’t pay penalties

If you owe taxes however, starting May 1 you’ll start accumulating penalty charges and daily compound interest on the unpaid amount.

The penalties start at five per cent of the amount owing, plus one per cent of the balance owing for each full month that the return is late — and compound daily interest is charged on the total amount due. If you file late more than once in a four-year period, the penalties can double.

Yes, you have to report your foreign income for tax purposes. Your foreign incomes are subject to be taxable in Canada.

While filing your personal tax return, your business income must be reported on T2125.

Usually it takes about 3-4 weeks for CRA to process your tax refund. (Please confirm)

It is best to keep your income tax returns, business records & other supporting documents of income and expenses claimed for 6 to 7 years in case the Canada Revenue Agency (CRA) decides to review your tax returns and/or audit your business.

You may file an objection with the CRA within 90 days from the date of Notice of Assessment or reassessment.

CRA allows deducting any reasonable business expenses incurred to earn business income. To be considered a reasonable expense, the item has to be appropriate to your business. Any personal expenses are not allowed for deduction by the CRA.

You might be eligible to claim business portion of Automobile expense, Insurance, Office expense, Mortgage interest & Property taxes.

Yes, there are essentially two ways you can split your business income. You can either pay your family members salary/wage or you can transfer some of the income to them as dividends.

If your business incurred a loss, you can deduct your non-capital business loss against other sources of income if you have any. If you do not have any other sources of income, you could carry forward your business loss to use it another year.

RRSPs contributions can provide you with a significant deduction at tax time which could be very beneficial to you.

All of your claimed business expenses on your income tax return need to be supported with proper documentation. If CRA requests you to present your receipt to them and if you fail to do so, they might disallow your claimed expenses.

Yes, CRA allows your business promotion expenses incurred to be used for tax deduction.

Generally, you could claim the following automobile expenses incurred for your business:

• License and registration fees
• Fuel and Oil costs
• Insurance
• Money borrowed to buy your motor vehicle
• Repair and maintenance
• Leasing costs