Corporation Income Tax Filing Scarborough

Common Personal Income Tax Return Filing Mistakes Committed by Taxpayers

According to CRA reports, there’s a huge discrepancy between the numbers of returns filed each year VS the expected number of returns that should have gone into processing. There’s a huge tax collection lag to accompany the woe. According to OECD, tax wedge for Canada is on a higher side and is constantly increasing as we speak. That leads to Canada’s lower rank on OECD’s list.

These statistics can be attributed to many factors, one big factor being the common mistakes that tax payers commit. ZRPC, the best personal and corporation income tax consultants in Scarborough, enumerate the top blunders made by tax payers and how to avoid them.

Late filing of Income Tax Return

You think it’s okay to file income tax returns on or after the due date. You feel it’s no big deal. Well, last minute filing can do more harm than good. First of all, there’re always chances of wrong filing in haste. You end up giving false info unintentionally. Plus, you haven’t taken bookkeeping seriously. So when audit happens, you’re in a fix. Take the help of professional bookkeeping services and personal income tax consultations to ensure a worry free, on time filing of tax returns.

Not claiming tax credits for the fear of audit

You have a list of tax benefits you’re qualified for. But you’re scared to claim them. Why? Because if audit happens, they might nullify that and charge a heavy penalty. Many people don’t know that they can claim CEA (Canada Employment Amount) with a T4 income. Fewer still claim the Children’s Fitness Tax Credit.

This is wrong on so many levels. One thing that you’re denying yourself the tax benefits you’re entitled to. Secondly, you’re denying CRA useful information regarding the employment scenario in the country and financial strength of the people that live in. If government thinks all are prospering under its regime, why it would make policies that benefit underprivileged?

Claim the tax benefits you deserve. Audit can harm if your paperwork is not in order. Hire the services of professional tax consultants to keep the paperwork in check.

Producing false information

While we encourage the citizens to avail the appropriate tax benefits, forging false info to make undue tax claims is completely unacceptable. There’s a term for it. It’s called tax theft. That’s the reason Canada lags behind in OECD’s list.

It’s a crime and can get you jail time if auditors catch you with your hand in the cookie jar. Don’t give false information. Sometimes, in the absence of proper bookkeeping, missing links can be misunderstood by auditors. Take help of good bookkeeping services. Many cloud based bookkeeping services are also available that let you access data anywhere, anytime.

ZRPC offers excellent bookkeeping services and personal & corporation income tax consultancy in Scarborough. Visit our website and ask your tax related queries.