FILING OBLIGATIONS FOR CORPORATION TAX RETURN IN CANADA
Canada Revenue Agency (or the CRA) requires all Canadian corporations to file their Corporation Tax Returns Canada each year. Corporation tax filings have to be filed within a period of six months of the tax year end and the tax installment for the anticipated corporation tax owing need to be made within two or three months after the corporation tax year-end.
DO NOT FILE YOUR UNFILED CORPORATION TAXES RETURN YET TILL YOU UNDERSTAND THE CONSEQUENCE FIRST
For business owners with unfiled Corporation Tax Returns, they typically just contact their regular accountants to file their unfiled Corporation Tax Returns in Canada without truly understanding the potential damages and consequences of filing without a good strategy, which often ends up costing business owner much more unnecessarily as a result of the hefty penalties and interest charged by the CRA for late filings.
If your corporation taxes are filed late, the CRA will charge big late filing penalties. The standard penalty for late filing of the Corporation tax is up to 17% for the first-time offenders. For repeat offenders who have not to file on time within last three years, CRA can charges up to 50% as late filing penalties. To make it worse, the CRA will add compounded daily interests to the penalties.
FREE TAX CONSULTATION & RATES GUARANTEE
At CRA Tax Rescue, we specialize in providing a comprehensive solution for your Corporation Tax Returns in Canada issues. We will analyze all the risks and problems associated with your unfiled Corporation Tax Returns and recommend the most protective solution to achieve the best results for your corporation.
Our well-experienced tax consultant will meet with you and offer an initial FREE consultation with no obligation. Our clients found our rates to be affordable and competitive since we have done our homework by comparing our rates to others in the tax resolution industry.
Unfiled Corporation Tax Returns problem won’t just resolve on its own. Get professional help TODAY by calling CRA Tax Rescue team at 1-866-611-6482 or go to the Contact Form on your right.
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The Government of Canada announced through the federal budget last year about its intention to take steps in addressing non-compliance in taxes which involve foreign property investment and foreign income. One of the major steps was the introduction of the revised Form T1135. This is for all practical purposes a foreign income statement of verification. It is applicable for the taxation period that followed June 2013. CRA could impose heavy penalties on unreported foreign income if the taxpayers failed to comply with the requirements concerning filling of Form T1135.
This Form has existed for several years now. It was pretty straight forward to complete in the taxation years that have gone by, previously. Starting from the 2013 taxation year, this form has been revised and it now needs detailed information concerning foreign property which is owned by Canadian residents.
Who is required to complete Form T1135?
Any Canadian resident who owns a specified foreign property at any part of the year is required to file the Form T1135 and the criteria has very much remained the same as it was before. The investment in the foreign property has to exceed a sum of one hundred thousand Canadian Dollars. Those individuals who migrate to Canada are not required to fill this form and be concerned about unreported foreign income. This applies during the year when the immigrants first become Canadian tax residents unless they were residents of Canada previously. It has to be noted that the form has to be filed for all the subsequent taxation periods which includes the taxpayer’s departure year from Canada. Besides the individual residents in Canada, Form T1135 has to be filed by all trusts and corporations also who are Canadian residents.
What is categorized as Foreign Property?
The definition of foreign property is broad and it includes non-Canadian assets like funds which are held outside of Canada. It also involves real estate property located outside Canada, stocks in non-Canadian corporations and interest accumulated in a non-resident trust which was acquired for due consideration. Foreign property specification will exclude property for personal use such as vacation houses. Properties which are used in active business operations are also excluded as per the Income Tax Act. Specified property abroad also involves non-Canadian investments that are held in a brokerage account in Canada.
CRA has strengthened the enforcement of Canadian tax laws when it comes to unreported foreign income relating to all individuals who own foreign property and earn income from investments abroad. Some examples of how this enforcement has been stepped up include the new `Offshore Tax Informant Program (OTIP)’. This is also referred to as the `whistle blower program’. The program gives financial rewards to those individuals who can provide evidence and proof about important unreported foreign income and international tax non-compliance cases.
The information would mostly be connected with income which is earned from the gains when disposing of foreign property. It would also include identification details such as the name of the bank in that foreign country where the Canadian resident is holding funds outside of Canada.
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In recent few years people with unreported foreign income noticed that new methods the CRA has developed to catch them. The Canada Revenue Agency has maximized enforcement on unreported foreign income to the CRA through its brand new Offshore Tax Informant Program in short OTIP. Mainly the CRA is after taxpayers who own foreign properties.
The CRA wants to know the country in which your property is located. It wants the name of the bank or any other entity that holds your funds outside of Canada, the identity of foreign companies in which you are a shareholder, the amount owed to you by foreigners and a description any form of asset, including land, which you have outside of Canada. This alone shows how serious the CRA wants to track unreported foreign income to the CRA from tax payers who do international deals.
Surprisingly enough, many Canadians do not understand what must be included in their income for taxation purposes. This knowledge is necessary to avoid facing unreported foreign income to the CRA penalties.
You need a tax specialist to determine how your income will be reported to the CRA. The items that are not taxable or included in the taxable unreported foreign income include gift, inheritances, damages paid because of being a victim of a criminal accident, benefits from a deceased life insurance policy holder and Canada Child Benefit Tax Credits and so on.
If you invest non-taxable income the interest rate that you will earn as a result will become taxable unreported foreign income to the CRA. If unreported foreign income to the CRA is for the previous tax year, the taxpayer should amend the changes. You may be penalized in form of penalties and interest charges as of the date the filing deadline was due. Consult tax specialist will reduce your penalties related to your unreported foreign income.
What tax troubles are you facing?
If you are a Canadian tax payer who is confronted by the CRA collection agency, the Canada Revenue Agency, you require immediate help.
There are thousands of businesses and individuals who do not know how to deal with their tax debts issues. The organizations that deal with tax troubles Canada can help stressed-out taxpayers to deal with those aggressive CRA agents. These organizations exist only to help you to relieve the stress you have because of your tax troubles. They have many different professionals, including accountants, former CRA agents and other taxation experts. They are therefore in a better position to deal with the Canada Revenue Agency collectors than you. The worst thing you can do with tax troubles Canada Revenue Agency notices is to ignore them.
Needless to mention, ignorance of CRA notifications will eventually lead to enforcement actions against you. It can become overwhelming once the CRA drops a “Requirement to Pay” letter to your bank and to you. This is among the worst tax troubles Canada taxpayers can face. The CRA will inform you about this letter, which will definitely tell you about the CRA bank freeze. You will, of course, receive two notifications prior to receiving the requirement to pay letter.
If you ignore these notifications then the tax collector will complicate the matter for you. It will direct your bank to freeze your funds so you can no longer have access to them. If this is where you deposit all your money then you might just get in to a cycle of debts to survive as the CRA depletes your bank account. The CRA wage garnishment can put many taxpayers into impossible situation for their tax troubles Canada matter. With the CRA wage or income garnishments you will be notified about your pending debts.
A wage garnishment is as bad as a bank freeze because the CRA seizes your income up to fifty percent of it. Can you imagine what it would feel like to work a whole month only to watch helplessly as the chief tax collector takes away half of your pay check? It is actually the worst punishment you can deal with for not dealing with your tax troubles on time.
When a taxpayer faces a harsh penalty threatening to take away their income they eventually declare bankruptcy. Do you want this to happen to you? The CRA agents are employed to collect money from taxpayers and close their files as soon as possible. They are not your friends and do not care that you are struggling to raise money to pay off your tax debts.
Canada Revenue Agency tax collectors will complicate your tax troubles Canada and make it a nightmare. But if you work with Tax Specialists soon after receiving your first notice about the amount you owe in taxes, you can avoid future harassment from the tax collector. The Tax Specialists can help you sort out the issue with minimum damage.
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