Your Corporate Tax Return
Posted On: 17/05/17 - 0

corporate tax return

As a Business Owner, You Need To File A Corporate Tax Return

Firstly, as a business owner, you may be tempted to report only part of your income to the CRA on your corporate tax return.  Or, you might consider hiding information about your income. When you are audited by the Canada Revenue Agency (CRA) you should think about the following.  The CRA rep uses the internet. What will show up if the agent enters your name or your business name on Google? Will the CRA agent discover information about income in your business that you have not reported on your corporate tax return?

Secondly, the CRA agents now regularly uses search engines.  They use Google for example, to find information about your company and you as an individual as you are being audited. In one case, the CRA disallowed a Voluntary Disclosure application because the taxpayer submitted an incomplete disclosure. The taxpayer failed to provide information about his role in certain business activities that showed up during a web search.

 

Operating In The Underground Economy.

Thirdly, finding people who do not offer all information on their tax return is a high priority for the CRA. Another top priority is fighting the underground economy in Canada. Making sure that taxpayers meet their GST registration, filing, reporting, and payment obligations ensures the tax system is fair for everyone, including you.

What Is Tax Evasion and Tax Fraud?

Fourthly, tax fraud is a criminal offence. Falsifying records and not reporting exact income is a violation. Inflating expenses or claiming a false benefit or refund on your tax return is also wrong. Tax fraud or evasion involves lying, hiding, and falsifying your return to avoid paying taxes. This tax revenue that is collected by the CRA helps fund programs and services that all Canadians benefit from. Including you and me.

What Are The Penalties If You Get Caught?

Fifthly, the Income Tax Act allows the CRA to impose penalties in cases where a taxpayer knew or ought to have known that their income was under-reported. The penalty in these cases is an additional 50% of the tax owed on unreported income on a corporate tax return.  There is a chance that you may also face criminal prosecution and fines ranging between 50% and 200% of the taxes evaded. In addition to this, you could also be faced with a jail sentence of up to five years. For more information, go to Combat tax crimes.

File With Confidence

We want to assist you in filing your business return with confidence and peace of mind. Call us regarding your personal or corporate tax return. We have plenty of experience in keeping business owners on side with the CRA.

Are You Already In Trouble With The CRA?

If you have made a mistake in reporting your business information and need to partner with a tax expert, phone us. We are here to answer your questions and make sense of what your numbers mean in your business. We want to provide you with peace of mind when dealing with the CRA on your behalf. Call Cheryl at 780-482-7297 to book your no charge consultation today.

12203-107 Avenue.
Edmonton, Alberta.
T5M 1Y9

Call us:
780.482.7297