June 29, 2012, Toronto – With today's tax deadline for the majority of
Canadian restaurants, anxiety is on the rise for business owners
scrambling to get their taxes in order.
June 29, 2012, Toronto – With today's tax deadline for the majority of
Canadian restaurants, anxiety is on the rise for business owners
scrambling to get their taxes in order. Legal expense insurance provider
DAS Canada is opening up its toll-free legal advice hotline to
restaurants across Canada seeking answers to their legal tax questions
and concerns.
While restaurant owners have their own challenges, there are a number of
universal tax concerns among small- and medium-sized business owners.
The most common questions/concerns include:
1. Proper reporting of income and expenses: For smaller and newer
businesses, it might not always be completely clear what constitutes
income, but the onus is on you to figure it out, because if you don’t
properly report income, it could result in a financial penalty.
2. Filing on time: It’s important to know which tax period applies to
your business, as they differ depending on your structure. For sole
proprietorships, professional corporations that are members of a
partnership, and partnerships where at least one member is an
individual, professional corporation or other partnership, income is
reported on a calendar year basis. In some cases, sole proprietors or
partnerships can request a non-calendar fiscal period of reporting.
Corporations’ tax years correspond with their fiscal year end with
returns having to be filed within six months of the end of this period.
3. Knowing and using applicable deductions and credits: The federal
government and individual provincial governments all offer a number of
tax credits and deductions. These usually change annually, with new
credits and deductions becoming available and in some cases, existing
ones being eliminated. Such changes can become complicated and
confusing; understanding which apply to your specific business type and
structure will make it easier to ensure you are able to take advantage
of any eligible opportunities.
4. Audits: According to a report by the Canadian Federation of
Independent Business, 28 per cent of small businesses have been audited
by CRA within the last three years. One of the best ways to avoid
auditing is to keep your records in order. Incomplete or unorganized
records can force the CRA to assess a business’ income via alternative
methods.
To address these and other concerns and questions, small and
medium-sized business owners are invited to call DAS with their legal
tax questions. The hotline will be available from 9:00 a.m. to 5:00 p.m.
on Friday, June 29. Small business owners can call 1-888-582-5586 and
quote code TAXFREE during that period to have access to qualified legal
advice on their tax issues.
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