Tax Audit and Tax Planning in Markham & Thornhill

TANgible On-Boarding Process

We have a team of tax specialists and tax lawyers that are able to guide taxpayers, business owners and self-employed individuals who are being audited by CRA (Canada Revenue Agency). We can guide you in the appropriate direction and provide you with FREE consultation. If you need legal representation in the Tax Court of Canada and/or have been criminally charged with tax crimes, our award winning Tax lawyer can represent you. Staying compliant with CRA is not a guessing game. Our tax specialists have over 20 years of experience in knowing what raises red flags with CRA auditors. We can provide benchmarking reports that assist clients in measuring the gaps from industry averages.

Taxpayers, small business owners and the self-employed who have not filed corporate tax returns or personal tax returns can still file back taxes within a reasonable amount of time.

If you have undeclared income but have NOT yet been contacted by CRA, you can receive consultation on addressing any concerns and/or tax planning advice.

Tax Planning is an under-utilized area amongst Canadian small business owners and corroboration. If tax advice is appropriately implemented, it results in immediate tax relief and ‘never-ending’ future benefits. See examples on some strategies that are used by our tax specialist.

Step 1:

Fill out the form briefly identifying your concern

TANgible will go through the form and gather more information. We will then assign a tax specialist to contact you for your Free Consultation

Step 2:

Tax Specialist / Tax Lawyer

You will be provided with guidance from the team and recommendations as part of the FREE consultation

Step 3:

Retain our Services to represent you

You may decide to retain our services post-consultation, where we will agree on deliverables and provide a service quotation.

Tax Planning for Small Business during the year:

Leverage Your Losses.
You can minimize taxes payable for the period just by knowing when an optimum time is to realize losses from bad debts, sale of equipment, etc. Writing off such losses in a year with lower-than-usual net income may not be the best approach. Your Tax Specialist may advise you to sell that particular equipment in a year with high net income, thereby offsetting the taxes payable in that year. The same approach can be used for inventory clearance sales, where you can capitalize on the losses realized from a tax perspective.

 

Inventory Donation allows for tax credit:
Holding inventory that is not being sold creates unnecessary storage and maintenance costs. Consider donating the inventory to reduce taxes, because the removal of inventory has to be planned before the year end. Ridding yourself of the inventory creates a tax deduction and the inventory can go to a good cause.

 

Plan Your Loans & Interest Payments:
Interest payments are a tax deduction. Plan on when to take a loan and make interest payments in order to maximize the benefit from interest deduction. Key planning can be used to review cash flow, and funding requirements and matching the tax strategy to fully optimize the timing of borrowing.

 

Deferring Salary:
You can defer your salary at the end of the year and save on taxes. This strategy is commonly used by directors of corporations who want to minimize personal income taxes payable for the given year.

 

Tax Strategies on Corporate Structure:
Learn how to qualify your corporation as a Canadian-controlled private corporation (CCPC). CCPSs are entitled to claim a small business deduction on active business income (ABI) earned in Canada.
What is an “Active Business”? What factors are used by the CRA to qualify ABI, and what are the benefits for CCPC and the lower tax rates?

 

The small business deduction currently provides an 11% federal tax rate on a CCPC’s ABI. The current federal limit is $500,000. The small business provincial rate varies from province to province. See Table below for 2016 rates.

 

Software Engineers, IT firms and companies that work with 1-2 clients need to learn about how Personal Service Business (PSB) rulings work. This group is in the radar of the CRA, so be sure to avoid having the CRA label your business as PSB. To assist you in making this determination, we recommend consulting CRA Publication RC4110: Employee or Self-employed?

 

TABLE : Provincial and territorial lower and higher tax rates not including Quebec and Alberta
Province or territory	Lower rate	Higher rate
Newfoundland and Labrador	3%	14%
Nova Scotia	3%	16%
New Brunswick	4%	12%
Prince Edward Island	4.50%	16%
Ontario	4.50%	11.50%
Manitoba	nil	12%
Saskatchewan	2%	12%
British Columbia	2.50%	11%
Nunavut	4%	12%
Northwest Territories	4%	11.50%
Yukon	3%	15%

 
For tax planning services in Markham & Thornhill, please Tangible Accounting today.

Testimonials

As a business owner and computer repair technician, I value the importance of accuracy. TANgible Accounting has high integrity in delivering accurate financial reports and corporate tax filing. They performed back work for my Corporation Tax going back several years; brining my company up to date; this resulted in the corporate tax owing for FY 2014 much lower. Through this experience, I feel that their knowledge and experience in tax is diverse and I recommend any business requiring back work or tax audit to hire TANgible Accounting. As a business owner in Markham and York region area, a local accountant that is accessible is important. They are available to me throughout the year for accounting and advisory services, who offers practical solutions.

Daniel G, President of Twinbytes Inc.