4 Ways to Ensure Tax Compliance

To be certain, you are in compliance when dealing with your taxes, the CRA requires you to keep hold of all supporting documentation. This consists of any receipts, documents, and tax forms, for six years from the end of the last tax year to which they relate.

 Rebecca C Penner CPA, CGAhttps://rcpenner.com/contact

To help with keeping all your files in order and safe from being accidentally thrown out. It is a good idea to scan your documents and keep them on a separate hard drive. Or to keep all your documents in a cloud-based storage such as Hubdoc. Hubdoc is an online tool that can also help you with your bookkeeping. This will allow you to say goodbye to old shoe boxes full of receipts and hello to 2022 and cloud-based storage. If you’re interested in finding out more about Hubdoc click the link: https://www.hubdoc.com/

What is Canadian Tax compliance?

Canada’s tax system is based on self-assessment. The CRA uses the self- assessment system to collect income tax. This means the tax obligation of a taxpayer is paid during the assessment year before the income tax returns are filed.

For self - assessment to work, society as a whole must fully support it. This ensures fairness to all.

What are the 4 determinants of Ensuring Tax Compliance?

1. Tax Awareness – You may think that this is something that every person should know. But what if you are a recent immigrant to Canada. How do you even know what questions to ask if you don’t understand the tax law? If you are new to Canada please click the link provided here to find out what you need to do:https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/individuals-leaving-entering-canada-non-residents/newcomers-canada-immigrants.html

2. Tax Fairness – This means that a governments system of taxation must be equitable to all of its citizens.

3. Tax Complexity – Tax professionals relate tax complexity mainly to the ambiguity and excessive changes in tax laws. Also, with the need to comply.

4. Tax Information – Means documentation or information pertaining to your tax status once filed.

Rebecca C Penner CPA, CGAhttps://rcpenner.com/contact

The importance of tax compliance with tax laws is to ensure the system keeps working for all. Tax compliance also ensures the ongoing support of many government programs and services. If all governments keep the tax rules as clear as possible then everyone wins. If a country has a complicated tax system, it is generally associated with high tax evasion. Which in the long run doesn’t help anyone.

As always thank you for taking the time to read my blog.

If you have any questions, please don’t hesitate to reach out.

Sincerely,

Rebecca C Penner CPA, CGA