The Facts about Tax Evasion and How A Tax Firm Can Help You

news Lần cập nhật cuối: 20 Tháng năm, 2014

Most taxpayers file their returns in a timely and honest manner, only taking deductions permitted under tax law. However, some individual taxpayers and business owners try to evade paying taxes, risking severe legal consequences. For taxpayers who are currently having tax problems with the Canadian Revenue Agency, it would be prudent to seek out the assistance of a reputable tax firm.

Tax firms are a valuable asset, providing both individuals and business owners with a full line of tax resolution services. Individually, neither accountants nor lawyers alone are equipped to handle tax resolution issues. However, when joining forces they make a formidable tax resolution team. Many taxpayers may not be aware that it is not the job of the CRA to resolve issues for taxpayers, but instead may go after delinquent taxpayers with the agency’s full force, possibly initiating criminal legal proceedings against those who have not paid their taxes.

Because the Canadian Revenue Agency will relentlessly come after taxpayers, it is in the taxpayer’s best interest to have a competent tax team in their corner. Tax professionals can often times help with stopping penalties and relieving financial hardship by helping to reduce a taxpayer’s overall tax burden, even having financial penalties waived altogether in some situations. A skilled tax firm can assist with the tax problems surrounding audits, working out a fair payment plan with the CRA to allow taxpayers to pay off back taxes gradually. A team of tax professionals may be able to stop criminal prosecution and will execute tax appeals, if needed.

Canadian Tax

According the CRA, individuals and business that owe taxes and do not file on time will be charged a late-filing penalty. Interest will also be charged on unpaid taxes and continue to accrue for each month the return remains unfiled, up to a maximum of 20 months. Additionally, the CRA will also charge interest on the penalties beginning the day after the return is late. If amounts are owed from previous tax years the CRA will continue to charge interest, compounded daily, on the previous unpaid amounts. However, interest on unpaid taxes may be waived under certain circumstances. Worse than late filings, tax evasion is one of the most serious tax problems, and taxpayers should not even consider trying to remedy the situation without the help of a tax firm.

Different from tax avoidance, which is legally avoiding paying taxes based on exemptions or loopholes in the tax codes, evasion is defined as when a taxpayer has illegally tried to escape paying taxes. The CRA explains that tax evaders report less income than what they have actually earned or claim more deductions than are legally allowed. Tax evasion can occur if an individual or business fails to report undocumented income, such as a side job where payments were made in cash, to the CRA. It may also be considered tax evasion if an individual fails to file a tax return to avoid paying taxes. Tax evasion carries the potential for stiff criminal penalties, including steep fines up to 200 percent of the amount the offender tried to avoid paying as well as a jail sentence. Taxes should always be paid, but if you are experiencing some difficulties with your taxes, contact a reputable tax firm, like Tax911 Now! (get more information at http://tax911now.ca/understanding-tax-evasion-vs-tax-avoidance/), and get the help you need.

Sharing the latest and updated news around the world.

Bài viết liên quan

How to Effectively Manage Your Debt?

How to Effectively Manage Your Debt?

Debt settlement is one of the financial problems that are affecting many people today. There are so many cases...

Understanding Trading: The Five Key Markets Explained

Understanding Trading: The Five Key Markets Explained

For those looking to either break into the world of investing or diversify their existing portfolio, it’s important to...

Don’t Make These Silly Mistake With Your Money

Don’t Make These Silly Mistake With Your Money

As we all know, money is the most import factor for having in a good life. You need money...

Understanding the Basics of Forex Trading with XFR Financial Ltd

Understanding the Basics of Forex Trading with XFR Financial Ltd

Learning forex trading is, in a lot of ways, like learning how to speak in a foreign language. While...

Top 5 Ways for Getting Out Of Debt Quickly

Top 5 Ways for Getting Out Of Debt Quickly

Overburdened with debt issue is a stressful experience. No matter what are your circumstances, if you have sought loan,...

How to Effectively Manage Your Debt?

How to Effectively Manage Your Debt?

Debt settlement is one of the financial problems that are affecting many people today. There are so many cases...