Business Consultant | Don’t Fret If You Haven’t Filed Your Taxes
Business consultant asks you to use a little bit of common sense when you realize that you are not filing your taxes for fear that you are going to get a whole bunch of penalties.
The fact of the matter is, says business consultant is that is exactly what is going to happen. If you do not file your taxes, whether you have money or not, you are going to get very punitive and very primitive damages and interest rates done to your accounts and your small businesses. They might be legitimately so bad that you’re going have to shut down your business.
What business consultant suggests is that if you know in fact that you are in trouble, with your filing your taxes by the time that you have to buy that by the deadline, make sure that you understand that you can go to the Canada revenue agency and invoke the voluntary disclosure agreement. What this is is this is an agreement that you have taken it upon yourself to come to the Canada revenue agency stated your case, was honest that you are going to be in arrears of your taxes, and can they please release the penalties.
This can be a very easy trick and something that is going to be very nice for you to forget and not at all a problem it’ll save you little bit of money.
For personal taxes, everybody that has a job is going pay personal taxes at the end of April. That it is just common knowledge. People however with unincorporated businesses and corporate businesses, and proprietorships do not necessarily remember when they have to pay their taxes and when the deadlines are. For example, for unincorporated businesses, June 15 is your date to file your taxes. You have to file them on or before June 15. There going have to start charging interest from the tax on April 30 regardless however. But you don’t get any penalties if you have an unincorporated business. If you have an incorporated business you have to file before April 30. And June 15 for a proprietorship or an unincorporated business is your particular date that you are going to have to file your taxes before you start to incur major penalties.
Corporate taxes are due six months after your year-end. It is always six months after the year end. That is never going to change it however, the interest on the taxes start to accrue after three months. Herbert taxes and you’re going to have to pay in monthly instalments as well. So that is going to be very punitive and you may not be able to pay that. The interest is small but the penalties are very big.
Keep in mind that what is going to happen is a lot of small businesses are going to be classified as being less than $1.5 million in revenue.
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A lot of what happens is, says business consultant, these things are a lot trickier in that they are going to view the GST as a trust account, according to the Canada revenue agency. It wasn’t your money to begin with, so that is why they view it as a trust account. It is going to be the default in three months and for the corporate and personal arrears that you are going to accrue, they generally are going to be able to get six months. Six months is obviously easier to get because they have more flexibility with this. There’s always the potential to get a longer-term, but it can be an very big and very difficult fight with Canada revenue agency in order to get a longer-term to pay your accounts.
You’re going to have to start making it better in terms of not bleeding so much money. The second that you file your taxes is when you are legitimately going to start making it better. You are going to pay always the same because it is interest. That is never going change, and although the interest rate might change, it is very few and far between, especially in this socioeconomic state right now.
Just make sure that you file your taxes, says business consultant, that is the best invite the vice that they could possibly do.
As well, business consultant as well as Spiro chartered approach factional accountants feel as though the Canada revenue agency should make a lot of the deadlines align. You’re going to and should be able to file your GST year-end and your corporate tax year end at the exact same time. That should be a lot less time-consuming, and a lot less work put in than the way with which it happens right now. The way with which it happens right now is you have to file at different times, and it is almost considered as if you are doing is too small business corporations in one.
Interest in addition to the penalty recently went up as well from 5% to 6%. The interest is 6% per year, that is not per month. It does change however if the prime interest rate changes as well. But don’t necessarily worry about it. That is 6% that you’re going to be able to get a chance to pay it by year.
On the other hand, you don’t necessarily want to start to pay month over month. The reason for that is because the first few months you don’t have any money at all. It can be a vice grip if you need to be paying another expense month over month and it might legitimately put such a strain on you and your business that you might go bankrupt.
Do not stick your proverbial head in the sand in this regard. Delaying filing taxes is going to cost you a lot more money in the long run instead of dealing with your problems head on.