Affordable Cryptocurrency Tax Audit Support for Canadian Businesses

Work out the tax you actually owe for the year, then compare it with what has already been paid. Total your income, subtract deductions to reach taxable income, apply the federal and provincial brackets, take off your credits, and set the result against the tax withheld on your T4 and other slips plus any instalments. If more was withheld than you owe, the difference is your refund. Tax software approved for NETFILE runs the same arithmetic once your slips are entered.

Yes, the CRA does telephone people, usually about a balance owing, a missing return, an audit or to verify information, and calls can come from many different numbers, so caller ID proves nothing either way. A real agent never demands payment by gift card, cryptocurrency or e-transfer, never threatens immediate arrest or deportation, and never asks for a password. If a call feels wrong, hang up, check your balance and mail in My Account, then call back using a number from canada.ca.

Yes. Nothing blocks filing a very late personal return, and the CRA will process a 2015 T1 that was never filed. Expect interest and a late-filing penalty on any balance owing. A refund is a different matter: the CRA's power to issue one for a year that old runs out, so read the CRA taxpayer relief page before counting on money back. Filing still matters for benefit entitlement, and unfiled years can bring an arbitrary assessment.

No. Filing and paying are legal obligations, not choices. A return is required if you have tax payable, and also whenever the CRA asks you to file. Filing late with a balance owing brings a late-filing penalty that grows for each month the return is outstanding, plus compound interest on the balance. Prolonged non-filing can end in an arbitrary assessment, a wage garnishment or a lien. If you cannot pay, still file on time and arrange payment terms.

Taxpayer information is anything the CRA holds that came from or was prepared about your tax affairs: returns, slips, assessments, balances and correspondence. The Income Tax Act binds the CRA to keep it confidential, so it cannot be released to a spouse, an accountant or a lender without your authorisation. You give that authorisation through My Account or a signed AUT-01. Sharing between the CRA and other government programs happens only where the law allows it.

Line 43700 is total income tax deducted, so you do not calculate it - you copy it. Add up the income tax withheld shown on every slip you received for the year: T4 employment slips, T4A, pension and benefit slips, T5 and other investment slips, and any tax withheld on a lump-sum payment. Enter the total, keep the slips, and check CRA My Account if one is missing.

Line 23600 is net income. Start from total income on line 15000, then subtract the deductions listed above it: registered pension and RRSP contributions, union and professional dues, child care costs, moving expenses, support payments, employment expenses and similar claims. Net income drives most income-tested credits and benefits, so an error there changes benefit entitlement as well as tax. Tax software totals the line automatically from the slips and claims you enter, but check the deduction list yourself.

A tax is a compulsory payment to government, set by law rather than agreed by contract, used to fund public services. In Canada the main ones are income tax on what you earn, sales taxes such as GST and HST on what you buy, payroll contributions on employment income, and property tax charged by municipalities. Nothing specific is bought in return for the payment, and that is what separates a tax from a fee.

Usually a tax preparer, tax accountant, or bookkeeper, depending on what they actually do. In Canada no single licence is required to prepare someone else's return, so the titles vary widely and are worth asking about. To transmit your return electronically a preparer needs an EFILE number from the CRA, and to discuss your file with the CRA they must be authorised as your representative, either through My Account or with an AUT-01. Confirm the scope and the fee before work starts.

Child care is a deduction rather than a refund, so what comes back depends on your marginal tax rate: the higher the rate, the more each dollar of eligible care saves you. The deduction is also capped by the age of each child, by what you actually paid, and by a share of the earned income of the person making the claim. Two families paying identical daycare fees can therefore see very different refunds.

Only for specific purposes. Fees paid to collect or establish a right to salary, wages, a pension, severance or support amounts, and fees to object to or appeal a CRA assessment, are claimed in the deductions section of the T1, on the line the CRA's guide names. Legal costs of earning business or rental income belong on the T2125 or the rental statement. Fees to acquire property are usually added to its cost instead of deducted.

Owing tax does not disqualify you, though it can complicate approval. Lenders ask for filed returns and notices of assessment, and a self-employed applicant is usually assessed on the income reported there. An unpaid balance shows on the notice, and where the CRA has registered a lien against the property the lender will want it cleared first. Filed returns, a documented payment arrangement and a record of keeping to it all help. Requirements vary by lender.