The taxation system in Canada is based on the self-assessment principle. This means that all residents of Canada, as well as people living in the country and having sources of income here, are obliged to report on them and pay taxes on time (by April 30 of next year). To do this, you must fill out an individual tax return in Canada. And not knowing how to fill it out, when to file it, and when to pay taxes is no excuse.

Some countries allow you to file one tax return from a family, but in Canada, everyone reports to the state independently. Although it makes sense to decide in advance how to distribute the sources of income to pay fewer taxes. You can ask for help from various offices that provide taxation services to people and help them to file a tax return correctly for a small amount of money.

Statistics show that 1/5 of all submitted tax returns contain inaccuracies. This leads to the taxpayer’s debt, and, accordingly, to penalties from the CRA. Since the fines are quite large, it is recommended to contact tax companies in Canada, where qualified employees help people to fill out reports correctly and submit documents promptly.

tax return preparation in Toronto

Also, inaccuracies in tax returns sometimes lead to the opposite result, when the state owes the taxpayer. There is no need to worry about this because, at the next reporting submission (in a year), the taxpayer can request a tax refund and receive it.

Notes on filing tax returns:

  • reimburse part of the paid HST taxes, which is about 800 CAD for a family of four people;
  • get assistance for low-income families: 75 CAD per person;
  • transfer the costs of studying/moving to the new tax year;
  • fix the losses incurred from activities on the stock exchange or business, transfer them to the previous or next year and receive a tax refund.

The tax situation is especially interesting for legal entities in Canada doing business with the neighboring United States. In order not to get confused in all the details of the tax legislation of both countries and not get into unpleasant situations, it is better to use US tax services in a reliable company with experienced accountants and tax lawyers.