Often, when people hear the word tax, their mood changes instantly. Tax is a complicated matter, but it doesn’t have to be.
Rotfleisch & Samulovitch detect that people only see a need to enlist a tax attorney if they own significant assets. This is not the case. Often individual clients are contacted by the tax authorities and asked several questions. If you’re not prepared, it can be a stressful time in your life.
There are some essential elements to remember when it comes to tax matters.
Keep a Record of Documents
Every individual is obligated to keep a record of income they receive for the period, together with any expenses they incur. If you have misplaced a payslip, you will need to check with your employer and get a copy of the relevant document.
File Your Return on Time
Returns can be submitted electronically or manually. The critical thing to consider is that your return must be filed within the specified time. Failure to declare your information on time can result in a fine being imposed.
What If I Make an Error?
When you enlist the assistance of a tax professional, they can guide you on the correct procedure regarding how you can amend the information you submitted to the CRA. Careful consideration must be given to any changes made, so take time to ensure you get the information correct the first time, if possible.
How Long Do I Need to Keep My Records?
A common mistake people make is that they destroy their documents if they’re not requested to submit them with their return. Often, because individuals provide their information electronically, they dispose of the supporting documents.
All documents about your income and expenses, together with any additional materials you have regarding tax claims, should be kept for a minimum of six years. A revenue office can request to re-assess your return, even after it’s been completed and filed.
Understanding the Processes
The internet offers a wide array of information about the tax procedures in your country. While a lot of the information is accurate, it’s wise to check the accuracy of information before you proceed.
It may seem that doing a tax return is a long, drawn-out process. Often, it’s a task that many push aside and choose not to complete.
Completing and submitting a tax return is mandatory, and should not be dismissed. It’s vital to stay up-to-date with your financial well-being; this will ensure that your records are clean and that you’re adhering to the requirements you need to.