The onus is on you, the taxpayer, to submit a T1-Adjustment to CRA and notify them of the missed Slip and they will re-assess your tax year.

The danger here is that if you don’t report the late slip and CRA catches the Slip not reported on your taxes – they readily assume that you, the taxpayer, have tried to mislead them by NOT reporting this income and may impose a penalty of 50% of the tax due by this omission. This could be huge and a major slam to your bank account.

One client this happened to was fined $4500 as the T4 issued from BC did not arrive at their home in Alberta. CRA view is that they knew of the income they received in BC and therefore had an obligation to report it (or at least an estimate of what was earned).

If you have a rental property, the basic write-offs include the interest you pay on your mortgage, property taxes, insurance, utilities (if you pay them), repairs & maintenance, property management fees, advertising, accounting fees, condo fees, and bank fees. Some repairs are expenses and some repairs are capital additions. Larger, more permanent improvements to the property must be capitalized and depreciated over a number of years. If you have ever or plan to ever use the rental property as a principal residence, then you must be careful to not disqualify yourself from claiming the Principal Residence Deduction. The Principal Residence Deduction is available on your home, and means you don’t pay tax on capital gains of your own home when you sell it. If, at any time, you rent out the house that you also plan to claim the Principal Residence Deduction on, you should talk to us first.

Yes, every year, the CRA makes changes to the personal income tax regulations.

That is why all of our tax specialists take courses every spring and fall to keep abreast of the new rules and how they impact you.

No. Our philosophy is to offer our clients individualized, comprehensive tax preparation services. To accomplish this, we feel that our clients are better served by in-house tax preparation, where our clients can meet with trained individuals to go over their tax needs both before we prepare your taxes and after, when we discuss the results.

We are here to work for you, not the government.

Throughout the year, things inevitably come up, or circumstances change.

If you ever have a question about taxes we have prepared for you, or how life changes may impact you going forward, we are just a phone call or a visit away all year long.

A tax problem can quickly become a tax emergency.

Unresolved tax issues with the Canada Revenue Agency (CRA) pose significant risks to taxpayers. The CRA has formidable powers that it exercises frequently to collect under the various tax acts. Taxpayers facing problems such as past due tax returns, undeclared income, or outstanding tax debt could face harsh consequences including:

1. Interest: Unpaid taxes can accrue significant interest, often increasing the tax debt many times higher than original amount. Interest charged by the CRA is compounded daily and is set at a rate much higher than that offered by financial institutions. In most cases, interest accrual cannot be stopped until the entire debt is paid in full.
2. Penalties: The CRA often levies financial penalties on filing errors and/or omissions, including late filing penalties, repeated failure to report penalties, and gross negligence penalties which can be as high as 50% of the understated tax. Penalties are meant to be punitive and the CRA usually applies them very liberally.
3. Prosecution: In cases of significant tax evasion, the CRA can pursue criminal prosecution and routinely publishes information on successful criminal convictions. Under the Income Tax Act and the Excise Tax Act, persons convicted of tax evasion can face fines ranging from 50% to 200% of the taxes evaded and up to two years imprisonment. Upon conviction on an indictment, a fine ranging from 100% to 200% of evaded taxes and up to five years in imprisonment can be imposed.
4. Enforcement Action: The CRA has a variety of legal powers that it can exercise to collect an outstanding tax debt. These powers include:
   • wage garnishments;
   • bank account seizures;
   • liens on your home, vehicle and other property;
   • RRSP, RESP seizures.

It is never beneficial to ignore outstanding tax debts. WS Accounting Services Inc. can help resolve your tax problems before it turns into a tax emergency. Our expert staff work with you to create a personalized solution that ends your tax problem taking into account your personal, professional and financial interests.

There are two main reasons to incorporate; one is liability, if your business puts you at risk (your actions may cause damage to property or injury to a person) then there may be a chance that you could be sued for damages; and as a sole-proprietor your personal assets, cash, home and vehicle would be at risk. The second is tax advantage, if your business is achieving sales/revenues above $50,000 yearly then, you’re no longer operating a “casual” business and need to elevate your business posture.

Yes and No.

If you have a GST number, you are required to collect GST on all of your income EXCEPT if the nature of your business falls in the exempt or zero-rated categories.

Still confused? Don't worry, you are not alone. That is why WS Accounting Services Inc. works hard to make sure you are doing everything correctly.

Filing frequency is dependant on the nature of the business, and your own self-discipline.

When you pay your employees, you MUST remit the money withheld by the 15th of the following month.

Our payroll department will not only calculate your pay stubs, but we will let you know the total amount of you must remit to the government.

At the end of the year, we will also prepare your T4s and send them to each of your employees, so they can prepare their taxes.

In the Construction Industry you need to complete a CRA form T5018 (Statement of Contract Payments) showing the money disbursed to each contractor. If the contractor is a business, the Slip will need to reflect the business name, mailing address and business number. If the contractor is an individual the Slip will need to reflect their full name, mailing address and Social Insurance Number.

If you operate outside of the construction industry, then the same information applies and needs to be reported on a T4A Slip.