13 December 10 
Canadian Tax Q&A I’ve neglected to file my Canadian taxes for the last 5 years (please no lecture thanks….I know I’ve been bad)…
I’m self employed and I’m finally caught up with all my bookkeeping records. I’ll be taxable in 2007 to 2009 and not taxable in prior years. To top it off I’ve just incorporated my business (yoga instructor) and I need to file for 2010 corporate year end.
How should I handle the past due returns? A colleague of mine suggested that I file the returns with a voluntary disclosure to avoid possible penalties. I’m not quite sure how to proceed.
Any thought or advice?
Thanks
XXXXXXXXRegards,
Dear XXXX
If you don’t owe any taxes for any years prior to 2007 I suggest simply filing those delinquent tax returns as is. For 2007, 2008 and 2009 it’s a different story. These returns are taxable and as such you will be assessed a penalty if they are filed. You should file under CRA’s voluntary disclosure program for these years as long as CRA has yet to contact you with respect to the past due returns.
You can read more about CRA’s voluntary disclosure process here.
Give me a call and we can discuss your situation in more detail including filing your corporate tax return.
Regards
Phil
Phil Hogan, CA
250-661-9417
This commentary reflects the personal opinions, viewpoints and analyses of the Beacon Hill Wealth Management Ltd. partner providing such comments, and should not be regarded as a description of advisory services provided by Beacon Hill Wealth Management Ltd. or performance returns of any Beacon Hill Wealth Management Ltd. client. The views reflected in the commentary are subject to change at any time without notice. Nothing in this commentary constitutes investment advice, performance data or any recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security. Beacon Hill Wealth Management Ltd. manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Investments in securities involve the risk of loss. Past performance is no guarantee of future results. Any discussion about taxation is for educational purposes only and should not be viewed as professional advice. Consult your tax professional for tax advice on your particular situation.
Comments