(Originally posted on October 26, 2015)

 

Ledgers Canada hands out awards at Annual Conference in Las Vegas NV.

 

Ledgers Canada hosted its 11th annual conference in Las Vegas October 21st – 25th at the New York New York Hotel and Casino.

Held annually in different locations across North America, the annual conference allows the Ledgers Franchise owners to meet with their peers, attend informational seminars and to learn from Strategic Partners what the future has to offer.

The theme of this year’s event was ‘Firm of the Future’ a description that is indicative of the direction Ledgers is going. “Embracing and adapting to technological advances will allow Ledgers Franchise owners to provide more efficient services and more detailed financial information to our clients; these advances allow Ledgers to provide more valuable information in a much timelier fashion” said Gordon Haslam, President & CEO of the Ledgers Group of Companies.

The culmination of the Annual Conference is the recognition of certain franchise locations for their excellence in several categories.

(Originally posted on October 3, 2015)

 

Handling a CRA Audit, Part 2 – What can they ask for?

 

Last month we looked at what can trigger an Audit by the CRA, this month we will take a look at the wide ranging power of a CRA Auditor.

Understanding what the CRA can ask for from you and others (your accountant, your employer, your bank etc.) can assist you in preparing for your Audit and getting out of it as cleanly as possible.

Under the Income Tax Act, the Auditor has the following rights:

  • To examine all books, records and documents of the taxpayer that could relate to the Audit, and any books records and documents held by third parties, which pertain to the Audit of the taxpayer.
  • To enter and inspect home offices and any other place where the taxpayer carries out his or her business, holds property, or maintains records.
  • To require cooperation of the taxpayer and third parties.
  • To make a copy of any document required for the purpose of the Audit or to demand a printout of the digital documents.
  • To not be interfered with. (this is a very serious one that is further explained as “no person shall, physically or otherwise, interfere with, hinder or molest an Auditor while he / she is performing his / her duties” Interfering with or threatening an Auditor is a Criminal Offense!

(Originally posted on September 6, 2015)

 

Handling a CRA Audit, Part 1 – The Audit Process

 

We live within a self-assessment tax system; that is, we tell the CRA what we earned, the deductions we are taking and the tax credits we are utilizing. The CRA then tells us the amount of tax we owe based upon the information that we sent them.

It is this self-assessment type of tax system that gives CRA the right to Audit selected taxpayers to ensure that each taxpayer is paying the amount of tax that they are supposed to.

Although the level of compliance with the Income Tax Act in Canada is high compared with other nations, CRA still conducts millions of audits each year and recovers huge amounts of unpaid taxes, interest and penalties.

Last month we discussed what triggers and audit, this month we will try and show you how to survive the Audit, if you should be selected.

(Originally posted on August 3, 2015)

 

What Prompts a Tax Audit?

For some, it is their greatest fear, for others, a fact of life. The letter from CRA saying they want to review your tax returns.

There are only 2 ways that a taxpayer can be selected for an audit:

  1. Random Change
  2. Targeted Selection Process

We’ll ignore random chance and give you the details for the Targeted Selection Process (TSP).

The TSP is based upon risk factors; the CRA looks for those that are more likely to owe more taxes based upon some specific criteria and experience:

10% of randomly selected taxpayers face an additional tax bill of more than $5,000 while 35% of TSP taxpayers owe more than $5,000 in additional taxes.

(Originally posted on July 29, 2015)

 

Common Business Killers

It is common knowledge that 85% of new business start ups fail within their first 5 years; 90% within the first 10 years. There are a number of ‘common business killers’, when overlooked, these items may lead to the demise of your business:

Lack of Planning: Every new business owner tends to react to each situation or set of circumstances as they arise, without the advantage of a plan, the business owner will jump from crisis to crisis without control or consistency, causing undue stress and teaching employees to operate in the same reactionary form.

A plan should be designed to increase the chances of success, while reducing the likelihood of failure. The plan should take into account the ‘what if’ scenarios and indicate a response to the problem and an efficient and reasonable solution, essentially indicating the competitive advantage of the business thorough differentiation and values.

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