Helpful tips to stay compliant with tax law.
Refrain from reporting revenue disparity
Ensure that revenue you report on your income tax return coincides with revenue declared on your GST/HST tax return, your spouse’s tax return and information provided by employers, financial institutions and other third parties.
Being an outlier
Declaring business income that’s significantly higher or lower than the norm could raise a red flag, leading to a CRA audit; CRA has extensive information about the profit margins and incomes for various industries and will compare your income to what’s usual for such a business.
Deducting large business expenses
Claiming large amounts of unsubstantiated expenses including advertising and promotion, meals and entertainment, travel, miscellaneous and interest expenses are of particular interest to CRA.
For professional advice contact Alpha Accountzy, Accounting & Tax Solutions.
