Edmonton Business Consultant | Digging Your Head In The Sand With Taxes
Edmonton business consultant says don’t do the proverbial digging your head in the sand and delaying filing your taxes to deal with your constraining cash flow problem as it is definitely going to make your cash flow not at all better, but worse.
A lot of the statistics say that you’re going to have to pay a heck of a lot of money in taxes if you delay filing your taxes. There are a lot of statistics that say that it is just not a good idea financially for you just to avoid your taxes and avoid your problem. You’re not going to be saving money if you’re not going to be paying your taxes. And submitting your taxes in the meantime, your as a matter fact in the long run going to be spending more money.
For example, suggests Edmonton business consultant, 5% of the balance owing +1% a month, is going to be the penalty for every time and every month that you do not send in and remit your taxes. There is late also for multiple times,. So if for example you are late second month, your penalties then double from 5% to 10%, and from 1% to 2%. That is a balance and a problem for month over month penalties. It is not just a one-time penalty or it is not just a penalty at the end of every year or at taxis in. That is month over month. It is definitely going to start to add up in a real hurry and very quickly.
There is interest in addition to the penalty which recently went up in Canada and the Canada government from 5% to 6% interest, says Edmonton business consultant. So now the interest is 6% per year. It will as a matter fact changed with the prime interest rate changes, however, in these socioeconomic turbulent times, the plan of the changing is not going to happen anytime soon.
Either way, you are going to have to pay interest on your default did payments. The interest is from the date that you should’ve paid the taxes at the very beginning. It is from the date that you have the first month that you are in violation. You can completely avoid the filing penalty by filing on time altogether. That is money saved. Even if you don’t have the money to pay, you can still file. Even if you’re papers and your documents and statements are not filled out properly, still file. It can completely eliminate the penalty. Just the penalties in and of itself if you don’t file our 5% overnight. It is not a matter of the 6% that you have all year to pay, this 5% you need to pay in the first 2 to 3 weeks. File as the penalties are the significant balances and can definitely be a killer to your small business.
The thresholds for having a proprietorship for example, and in the difference, are very low.
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Edmonton business consultant says stop running away from your problems, and you have to face them head-on. The reason for this is this can actually legitimately save you a lot of money. By facing them head-on, you will be able to acknowledge the fact that there are some financial issues from within your company, and you might be able to get a little bit of freedom, away from some of the penalties for late payment of your taxes and late remittance.
Edmonton business consultant needs you to understand the fact that the thresholds for having a proprietorship on the other hand, are quite low. And it is not the significance that changes the deadline from April 30 to June 15. What it is on the other hand, is did you meet the minimal threshold question mark that is the significance you’re going to have to look forward. Sometimes, getting into that June 15 filing deadline is a little easier than people may intentionally think.
Some people think that their year-end is set when they incorporate their business for example. Or potentially a lot of other people think that it is when they get there first GST number that their year-end then begins. However, that in is in either way, says Edmonton business consultant not true. Your year-end is set when you file your first corporate tax return. What was the. Where you didn’t make any legitimate money. That is going to be made your year one.
As well, there are going to be penalties incurred to you and your business, and those penalties will be based on the balance owing of your penalty.
If you didn’t make any money, you are going to be incurred a 5% penalty however, 5% of zero because you didn’t make any money that you’re is still zero. Lots of times you can strategize when you reach profitability in picking the year and as well. In the first year.
If you are a small business corporation and you have a business that is worth less than $1.5 million you are able to be an annual filing business for GST for some reason. And also, for some reason you’re going to be able to file your corporation six-month after the year end. It is legitimately impossible to file your GST without doing the same amount of work as your corporation year-end.
The GST is a lot trickier to try and can and and file for a small business owner, in particular if they do not legitimate have any business acumen, or post secondary experience. The Canada revenue agency is going to viewed the GST as a trust account. It is and wasn’t your money to begin with. The default is legitimately three months. This is when you’re corporation or your personal statements are in arrears. And generally you’re going to be able to get a six months allowance in order to oh it. There’s going always be the potential to make sure that you get a longer term. Get more information about what we do by going to our website.