Common Mistakes Made When Filing Taxes – And How to Avoid Them!

Common Mistakes Made When Filing Taxes – And How to Avoid Them!

Tax time is soon approaching – are you in good shape to ensure there are no errors in your filings?

Some common mistakes that individuals/businesses make include the following:

  • Thinking because they didn’t make any income, that they don’t need to file an income tax return
    • Even if you don’t make any income for the year, the CRA still requires that you file an income tax return that will outline that you made no income, however you may still be eligible for some of the credits and benefits that need to be reported
  • Forgetting to report all income – this can happen for a variety of reasons including misplacing T4’s, forgetting about a small amount from an employer
    • The CRA gets a copy of all T4’s that employers issue, so if you don’t report this income, they will see this on their system as they have all the records
    • If after sending your return you realize that you forgot to include a T4 then you can do a change by going to your electronic account of the CRA.   The CRA may be forgiving one or two times, but if this becomes consistent, they will eventually apply penalties
  • Thinking that because they didn’t assess a notice of assessment in the current year, that they won’t be pursuing any further action. The CRA has hundreds of thousands of cases to assess, and sometimes will take a long time to get to cases however they can go back many years and assess interest and penalties
    • If you find out later that your previous years tax returns need to be amended, the CRA has a voluntary disclosure program that allows for individuals and businesses to voluntarily let the CRA know that there needs to be a change made, whereby many times the CRA will be much more lenient on interest and charges and may not charge at all due to the fact that you came forward with the information
  • Not keeping the appropriate support for deductions
    • The CRA requires support for the deductions that you take on your income tax return – if you do get audited, they will not just take your word for it, and sometimes a credit/bank card statement is not enough to substantiate an expense that you are deducting if it doesn’t give enough information to reasonably assess that this is an allowable expense

Let easy way to get viagra us at Gram Financial help to ensure that you are in good shape when you file your returns. We will ensure that if you are ever audited that you are in full compliance and have all the support to be able to complete the audit quickly and effectively, with the least disruption to you.

how can we help you?

Contact us at the Toronto Gram LLP’s office.

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