Cross Border Tax Consultants

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 ...

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 ...

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...

Are you incorporated? Great idea! You can access lower tax rates with your corporation and pay less tax. For more than ten years, Maroof HS CPA Professional Corporation has been productively aiding clients with their Canadian small business & corporate tax needs.     Who need to file a corporate tax return? All corporations, tax exempt, non-profit and inactive corporations, needs to file a tax return every year even if there’s no tax payable! It’s a criminal act not to file a corporate tax return. A non-resident corporation need to file a T2 return if, at any time in the year, it performed business in Canada, it had a taxable money gain, or in some scenarios, it disposed of taxable Canadian property. When do you need to file your corporate tax return? File your corporate income tax return inside 6 months of the end of every tax year. The tax year of a corporation is its financial period. When the tax year of the corporation ends on the last day of a month, file the corpor...

Should I incorporate my small business in Canada? When should I incorporate? I was told I could save tax if I incorporate – is this statement holds true? What are the advantages & disadvantages of incorporating your business? Benefits of incorporating your small business: Let’s start with a list of the pros of incorporating your small business in Canada. • Limited liability – Running your business through a corporation gives a safety layer against personal liability. It makes it more challenging for someone to go after your personal assets if the business defaults on its debts. • Tax savings & deferral – In some circumstances, corporations have a lower tax rate in comparison to individuals. Running your business via a corporation in place of a proprietorship can aid to defer and save taxes. • Estate planning – A corporation is a detached entity to you, so it persists to live on irrespective of what happens to you. This can be useful when thinking about transferring your...

  This is very common for the employers to avoid expenses by asking their employees to sign contracts as corporations in Canada. If you are an IT professional in Canada and your employer has asked you to incorporate a business and sign the contract, you must know the tax implications of these decisions. When a corporation has an incorporated-employee who performs services on its behalf, it is called Personal Services Business (PSB) as per Income Tax Act in Canada. First, see if your relationship is of employee or independent contactor with the business for whom you are providing these services. IF the relationship is of employment nature, your corporation will be a PSB. If the relationship is of independent contractor, you have an active business income. Now, determining whether the relationship is employee or contractor, is a fact based exercise. Simply signing a contract and saying it is a contractor is not enough. A brilliant article written by Maroof H. Sabri provides a basic...