We often find G/HST errors when working on the year end for businesses that process their own bookkeeping.  In many cases, G/HST paid on expenses (otherwise known as Input Tax Credits or ITC’s), have gone unclaimed.  There is a time limit to claiming the tax paid so try to avoid these common mistakes: 1.  Change in G/HST rate.  When the GST changed to HST over two years ago, the bookkeeping tax code was not changed to reflect the higher ITC.  To avoid unclaimed ITCs always check the amount refundable against the invoice and set up a new tax code in the ...

Knowing when your return is due is crucial to avoid non-deductible interest and penalty charges from Canada Revenue Agency (CRA). The due date will also affect the cash flow of your business. Taking control of these dates is possible by looking at a few factors: Business Year End Date Frequency of filing Amount due When the G/HST reporting period(s) coincide with the corporate year end it easily enables reconciliation to the financial reports. To change the G/HST filing date fill out and send in Form GST 70.   Options for filing include annual, quarterly, or monthly.  If applicable, we recommend quarterly ...

homestories_tax

Looking for ways to reduce the accounting fees associated with tax preparation?  Accounting firms generally charge fees based on time.  The more time spent on your file the greater the accounting fees will be.  The following are a few tips to help reduce the time spent on your file: 1. Organize your paperwork.  Although each tax situation is unique, there are several similarities to each person’s tax return.  Organize your slips by: income, deductions, tax credits, etc. For example, if you are entitled to claim Employment expenses on your tax return, specifically your car, then put all your gas receipts together.  Organizing by date ...

  • TAGGED AS:
  • Comments on this post: Be the first to respond!
grad-hat

Obtaining a post secondary education is costly. Use that cost to your advantage and claim the Education and Tuition tax credit. Not all the fees paid are deductible for tax purposes so be sure to access your T2202A. In most cases, these forms are no longer mailed out – they are generally sent to the student’s in-box. If you are paying for your child’s eduction, you may be able to claim up to $5,000 of the costs by way of an education transfer. Your child must complete the back of the form assigning their unused credit to you. Continuing education is often a life ...

  • TAGGED AS:
  • Comments on this post: Be the first to respond!

When gathering your tax receipts to bring in, be sure to include your RRSP contributions for the first 60 days of 2012.  These slips MUST be recorded on your 2011 tax return – whether you claim them as a deduction or not. If they get missed, your return will have to be amended. You want to make sure you get the deduction for contributions as you will have to pay tax on these funds when withdrawn. RRSP contributions are usually claimed as a deduction when your income is in a higher bracket than it would be at retirement.  RRSPs are a ...

  • TAGGED AS:
  • Comments on this post: Be the first to respond!

With the abundance of paperwork a business owner is faced with, it can be difficult to keep track of the various due dates.  The penalties for being late, especially with Revenue Canada can be quite punitive.  Creating a ‘Due Date’ checklist can be helpful to keep payments and reporting on track. The Due Date Checklist can be created using any number of programs.  Any program will need the same information. Start by asking yourself what you want to track.  Canada Revenue Agency is one of the more important ‘payees’ so list your obiligations with them:  HST, Payroll, Corporate Tax.  WCB will naturally ...