VANCOUVER -- 2020 was a year like no other.
Along with the significant impact to individuals and businesses globally, there are numerous tax implications to be aware of this year.
Taz Rajan, Community Engagement Partner at Bromwich and Smith, shared some tips to help small business owners ace their filings:
- Be organized. Gather your receipts, tax forms, GST and payroll information and have it organized and ready to submit. If you have a bookkeeper, get that paperwork to them to organize your documents for you; if you do not, it may be time to consider hiring one or to ensure you get your documents organized for yourself.
- Go virtual. This year tax filings will be virtual of course, so business owners need the right online tools and software to file virtually and that may, in fact speed things along which is great if CRA owes your business money.
- Be prepared for the worst-case scenario. Given the various government stimulus that many business owners received, there may be clawbacks or additional taxable income that you may not have budgeted for. She'd recommend that business owners prepare and brace for potentially owing money to CRA.
Rajan shared that some Canadian business owners will find themselves in a predicament after filing this year and truly may not be able to pay back taxes.
Rajan emphasized that ignoring your tax filings is not an option.
The CRA can decide an arbitrary amount owed, and this can often be devestating.
Rajan urged Canadians to reach out to a licensed insolvency trustee, such as Bromwich and Smith, to get a free consultation to understand all available options.
For more tips from Taz Rajan for this tax season, check out the full video from CTV News at Noon.
