Cross Border Tax Consultants

Want to come clean about your missed income or hidden assets in Canada? Is it possible? How exactly can you do it? In this article, we will be discussing the method to report your missed assets to the CRA. Read on to learn more about the process.     What is CRA's Voluntary Disclosure Program (VDP)? When it comes to taxes, many people make mistakes or intentionally omit or misreport information. If you are one of these people, you may be able to get on the right side of the Canadian tax system. A Canadian taxpayer can apply to the Voluntary Disclosure Program to reduce late filing penalties (VDP). This program allows taxpayers to correct unintentional errors or omissions on their income tax returns a second time. What are the conditions to apply for VDP? You can submit a Voluntary Disclosure Program to: • Correct any missing or incorrect information in your tax returns. • Include information or income that you did not disclose in previous tax returns. • Rectify previousl...

Are you confused about Canadian Income Tax Rules? Should you be reporting your foreign rental income in Canada? Well, let us find out. Regarding reporting rental income for Canadian income tax purposes, foreign and domestic rental income are regarded equally. A Canadian taxpayer must therefore reveal all of their worldwide income. What if the cost of foreign properties is more than $100,000 CAD? Then you must fill out the T1135 form, which is also known as the foreign income verification statement. Continue reading to learn more.     How to Report Foreign Rental Income? • To report your foreign rental income while filing income tax returns in Canada, fill out the T776 Form, also known as the Statement of Real Estate Rentals. • Keep in mind that your international rental income must be reported in Canadian dollars • To avoid double taxation, income taxes paid to the foreign jurisdiction on rental income can be claimed as a foreign tax credit on the taxpayer's Canadian incom...

When paying your taxes annually, you need to include all of your foreign income on your return – including details of your foreign properties. And this goes to any taxpayer who is required to pay taxes in Canada - whether you reside in the country or are a Canadian resident who lives abroad. But how exactly does the Canada Revenue Agency (CRA) know about your foreign properties? Let us find out. T1135 Form and its Significance If you live in Canada, your income from all sources is subject to tax. There are severe penalties for failing to disclose your worldwide income in Canada accurately. The country's voluntary tax system depends on individuals accurately and honestly declaring their income and paying their income taxes. It's why criminal sanctions may occasionally be part of the penalties. If you own foreign property with a value of more than $100,000, you are required to submit a Form T1135 Form once a year. This is done to ensure that all Canadian residents accurately ...

  Are you confused about whether to hire a lawyer or accountant to complete your Voluntary Disclosure Program? What if we tell you that you don't need them? But before getting into that, we need to learn more about the CRA's Voluntary Disclosure Program. Read on to know more. What is the Voluntary Disclosure Program? Many people make errors, intentional omissions, or misreporting regarding taxes. If you happen to be one of those people, there's a way around it. There is a chance that you will be treated fairly by the Canadian tax system. Through the Voluntary Disclosure Program (VDP), run by the CRA, you get a second chance to fix any inaccurate or late tax files. The voluntary disclosure program allows taxpayers to make changes to their tax affairs. VDP lets you correct your mistakes of the ten prior taxation years. Additionally, VDP aids in shielding non-compliant taxpayers from legal action. If you need to file pending tax returns with the CRA or correct prior tax file...

Worried about filing your income tax returns? Did you forget to consider your foreign rental income? Now you are worried about the penalties. What if we tell you that there is a way around it? So, can you really avoid penalties on T1135 late filing? Read on to learn more. What is the T1135 Form? The CRA, short for the Canada Revenue Agency uses the T1135 form to obtain information on the number and income generated through foreign assets that are held by the residents of Canada. Form T1135 is also known as Foreign Income Verification Statement. Who should Fill it? You must file the T1135 form, also known as the Foreign Income Verification Statement if you own foreign property worth more than 100,000 Canadian Dollars at any time during the year. This is applicable to all individuals, trusts, and partnerships. When completing the foreign income verification statement, you must consider the property's cost rather than its current value. An individual need not complete the T1135 f...

If you have intentionally misreported, consider the Voluntary Disclosure Program (VDP). You will still have to pay the taxes owing and the interest generated due to the corrections but if your application is accepted by the CRA you could receive penalty relief or prosecution relief and some of your interest generated could also be waived off.   To apply for VDP, certain criteria need to be met: i) The disclosure must be made before the CRA finds out about it and contacts you. ii) You should provide complete information. iii) The information must be older than a year iv) You must be facing penalties or tax charges. It is always advisable to seek professional advice from a qualified accountant as it is difficult to keep track of all the rules and changes made in tax filing. You are also more prone to making mistakes that could cost you a lot if you do not have the proper knowledge. If you are looking for expert advice and assistance regarding your individual income tax return,...

Did you claim the wrong deduction on your taxes? Or, did you forget to state a job income that you had a T4 for? Mistakes can cost you a lot, especially when making mistakes in filing tax returns.   Here are some common mistakes you need to look out for a while filing your personal tax return. 1. Failing to report Principal Residence Exemption The Principal Residence Exemption provides an exemption from tax on any profit gained from the sale of property that is designated as your principal residence. The sale must be reported on your tax return along with the designation on the second page of Schedule 3. You should also fill sections related to the principal residence in Form T2091. 2. Not Reporting Foreign Properties and Income If you owned any foreign property with a total cost exceeding $100,000 at any time of the year, you are required to submit Form T1135 along with your tax return by the due date. Failure to do so will result in a hefty penalty of $25 per day, which is ...

Do you require the services of a business plan writer in Canada? You’ve come to the right place at Maroof HS CPA Professional Corporation ! They provide business plan writing services for thousands of clients including startups, small business owners, investors, bankers, non-profit organizations and mid to large-sized companies since their inception. So, regardless of your sector or market, they have real-world expertise and experience to help you create a winning business plan. For many entrepreneurs, writing a business strategy is a time-consuming process. Many business owners lack the necessary business writing skills to persuade their target audience. Business owners should hire a business plan writer for these reasons. Hiring a professional business plan writing service will allow you to quickly and expertly create a custom business plan. Professional business plan writing services in Canada understand that better than others. They are the professionals with years of experience o...

Managers, bankers, and credit debtors all need to prepare financial statements. In fact, when it comes to planning the company's future operations, financial statements have a significant impact on decision-making. Chartered Professional Accountants (CPAs) can prepare three compilation engagements or compilation of financial statements in compliance with professional standards and ethics. Compilation of financial statements or compilation engagement is one of them. It will be a way to make single financial statements or comprehensive financial statements more dependable and credible. A compilation of financial statement notice to readers is the least expensive among various audits. It is preferred by entities whose key stakeholders easily approve such a form of financial statements!   A compilation engagement or compilation of financial statements is a requirement that requires a certified public accountant to gather information from the company's management and provide it in ...

The Voluntary Disclosure Program is intended to encourage conformity with Canada's existing tax regulations. Its goal is to encourage people to come forward voluntarily to resolve their tax issues with the CRA. It's a legitimate way to avoid understatement fines and other administrative penalties for income, sales, property, and other forms of taxes. Many people have been able to resolve their tax issues & obligations through a voluntary disclosure program. Thanks to this convenient program & a very generous way to come clean and have a fresh start! Residents of Canada, as well as non-residents in certain circumstances, are required to file tax returns. They just pay sums owed to the Canada Revenue Agency for each tax year. These tax filing and payment duties are sometimes missed or incorrectly met. It may be purposeful or accidental! When it comes to paying taxes, mistakes happen. If they aren't rectified correctly, then you or your business might face additional ...

Filing two sets of taxes as an American living in Canada might be a little daunting & overwhelming. Knowing which tax rules apply to you and tracking your tax filing options can be daunting! Filing taxes as an American residing in Canada attracts its own set of questions and concerns. Is there anything else you need to specify to the Internal Revenue Service (IRS)? How do your financial accounts in Canada influence while filing your tax return? What to do if you are a commuter from Canada to the United States? Thinking about tax procedures & filing in the United States and Canada probably makes your mind spin! Don't worry! Maroof HS CPA is here to help! Cross-border tax returns necessitate a large level of technical and professional knowledge. Over the last few years, the US tax code has undergone considerable revisions. These modifications had a significant influence while filing US tax returns by US ex-pats in Canada. Anyone attempting to file these tax returns without ...

The income tax issues and Electronic filing for Individual Income Tax Returns online can be difficult for most people in Canada who wish to file their taxes. You can handle your taxes on your own, but you won't have the benefit of professional eyes to ensure the greatest possible result. However, it does not have to be the case if you hire a professional tax service no matter you are an individual and corporation, residents and non-residents of Canada. Maroof HS CPA Professional Corporation , provides a wide range of tax services to make your income tax filing as simple as possible. A professional accounting firm registered with CPA Ontario and CPA Alberta offers exceptional income tax services in Canada. The following are just a few of the many advantages of using a professional tax services for your taxation & return filing needs. Experts Save You Time Obviously, the most important consideration of tax filing & other tax services is to save money legitimately. Do you want...

It is always wise to file tax return on time and ensure that the CRA receives accurate and comprehensive information. In fact, it isn't always the case! Many Canadian taxpayers are apprehensive about dealing with the Canada Revenue Agency (CRA). They might have knowingly submitted incorrect information on their tax returns or mistakenly left out income. Because of poor or incomplete record-keeping, they sometimes supply incomplete information on previous returns. The CRA has a voluntary disclosure programme to encourage Canadians who had engaged in such behaviour to come forward and successfully come clean. Voluntary Disclosure Program (VDP) has proven to be incredibly advantageous for taxpayers with undisclosed income or have been late in completing tax returns or information. Taxpayers who participate in the Voluntary Disclosure Program (VDP) can come forward without fear of facing penalties, and/or prosecution. If you have any previous tax-related issues, defaults or delinquen...

Creating a solid business plan takes time, energy, and it is a much brainstorming activity! You may be asking why I need a business plan writer. or Why should I go to the trouble of documenting the business idea that I know will work appropriately? The answer is that you significantly increase your chance of success if you keep your business ideas and concepts with a business plan writing. Are you planning to write your business ideas, concepts, or business plans? If yes, you should never miss out on taking the assistance of a professional business plan writer. They help you script what your business plan is all about and highlight the main aspects of any business. Every business planning is crucial and supposed to be backed by strategic planning. It contains the main stages of business, and it differs from the common academic assignment. The essential principles and stages of your company's development should be included in this type of business plan writing. A well-written busin...

Investors often think twice before funding start-ups, so your business plan has to be exceptional to impress them. But if your pitch deck fails to get the much-needed funding from investors, there must be something wrong with your business plan. Here are the reasons why a business plan might fail to get the investors' attention: Unrealistic Assumptions It's good to be optimistic about your businesses' future and present it to investors. But, you should be realistic as that's what makes investors genuinely see the potential of your business and fund for it. Financial projections and cash flow statements should be presented accurately to get funded. Explaining sales forecasts without complete information can be a red flag for investors. You need to focus more on cash flows and not just profits while presenting your business plan. Using Business Plan Templates If you've used ready-made templates for your business plan, that can be another significant reason for your...

Planning to set up a business in Canada? Canada welcomes many entrepreneurs, but you can set up your business if your business plan is approved. A solid plan will help you immigrate to Canada as an entrepreneur under various governmental programs. You need to go through several steps before your application gets approved. For one, before writing a business plan, you may have to write a business concept and get it approved. Your business concept will be your initial draft of the business, and if it fits well with the Canadian market, you can get started with your business plan.   How to Immigrate to Canada as an Entrepreneur? Each province in Canada has its own guidelines to set up a business. Additionally, depending on your business type, you may choose either a provincial or federal setup. Go through the procedures carefully on the official website and see what is essential to include in your business plan. They have also laid out your business plan's details, so go through th...

As an entrepreneur, your business plan is what drives your business. Having a well-crafted business plan can help you nail your pitch deck. Writing a business plan is a daunting process, but it doesn't have to be when you do your research well. Your business plan will include your goals, summary, financial projections, and a lot more. So, if you're planning to go the entrepreneurial route, getting your business plan right should be your first step.     Importance of having a business plan You may find it unnecessary to write down a detailed plan when you can get experience and learn from your mistakes. But that's where it can all go wrong. Having an idea is excellent, but you need to strategically write down how to bring it into reality. Spend a little time, and you will not regret writing a plan. In fact, it may even speed up the process of creating a pitch deck when you're ready to get funding from investors. So, never think twice or procrastinate about writing a bu...

Incorporating your business in Canada involves a couple of steps, and if you're unsure how to go about it, here are some things you must keep in mind. The first thing you should do is decide if you need to incorporate your business or not. Not all companies need to be incorporated. A self proprietorship might be right for you if you’re just starting out. The next thing is to decide if you need to incorporate your business provincially or federally. Once this is done, you need to get a name for your corporation. To ensure other corporations do not take your business name, you need to research. Search on Google, social media handles, and domain names to ensure your business name is unique. You reserve that name. The next step after getting a name is to submit the documents of articles of incorporation and the record of the first board of directors and registered office address. You need to consult a lawyer or a chartered accountant to get this done for you. Incorporating provinci...

Some taxpayers may become very fearful at the thought of having to reopen a filing or make revisions to file back taxes with the CRA (Canada Revenue Agency). But CRA’s Voluntary Disclosure Program (VDP) can benefit someone in this circumstance. The Voluntary Tax Program is worth taking benefit of if you know that you’re going to owe taxes & penalties will be appraised. But it is essential that you meet all 5 conditions set by Canada Revenue Agency to be eligible.   The Voluntary Disclosure Program isn’t part of the Income Tax Act but merely a compliance measure approved by parliament to provide CRA unrestricted powers over the upshot of your disclosure. The 5 conditions that must be met under the Voluntary Disclosure Program criteria are compulsory to use the program. To file under the VDP, you must meet all conditions: • The disclosure must be voluntary. If Canada Revenue Agency asks you for information or requests a filing before you choose to use Voluntary Disclosure Prog...

Have you been thinking of incorporating your own business in Toronto? You can find a number of expert business incorporation services that can help you incorporate your business successfully and in a hassle-free way. Now that you have decided on business incorporation in Toronto, do you know what benefits it offers and what is its importance? Let us discuss the importance, benefits, and other aspects of business incorporation below:     What is the Importance of Business Incorporation? Some of the reasons why business incorporation is important are as follows: • A separate legal entity is established • Personal assets are protected • Boost to Professional credibility • Flexibility with tax • Tax deductions • Long-lasting business existence • Popular Entity Options What are the different types of business structures? Sole Proprietorship Sole proprietorships and partnerships are easy to form and maintain as there is no requirement of special entity-specific fi...