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FAQ

How do you meet us?

You can meet us in our office at 5396 Park Ave, Montreal, Quebec H2V 4G7

What makes you different than other monthly accounting services?

Our standout customer service prioritizes consistent communication and genuine care for your business success. Our experienced accountants go beyond traditional services, offering proactive business advice and strategic tax planning to maximize your profits.

While an annual accounting solution might suit some based on cost, our monthly accounting services provide ongoing support and timely insights. This proactive approach allows us to offer valuable services like tax planning, ensuring you make informed decisions and lower your tax liability before year-end.

Explore why working with a monthly accountant eliminates the need for an annual accountant. Note that, while we handle personal taxes for business clients, some still opt for an annual accountant for personal tax needs. We provide flexible solutions to cater to your unique financial requirements.

How to File Your Taxes?

The optimal method for filing your taxes is through a CPA Auditor, as they possess the highest level of education and can offer additional related services.

What are the common returns I need to file?

For incorporated businesses, filing a corporate income tax return is required within six months from the year-end date. However, corporate taxes are due either sixty or ninety days from the year-end date, depending on the nature of the income.

When do I have to file my tax return?

For employees, the tax filing and payment deadline is April 30th. If you owe taxes, ensure your return is filed before April 30th or postmarked before midnight on the due date.

If you or your spouse/common-law partner operated a business in 2009, your return is not due until June 15th. However, the taxes payable are still due by April 30th. If the return is not completed by April 30th, you can estimate the taxes owed and make a payment based on the estimate. If you owe taxes, ensure the tax return is filed before midnight on June 15th or postmarked before midnight.

When is the income tax return due for a senior or a regular employee without having to pay penalties and interest if taxes are owed?

For someone who is a senior or an employee, you will have to file and pay your taxes by April 30th. If you owe taxes, make sure your return is filed before April 30th, and pay your taxes by April 30th to avoid late filing penalties, late payment fees, and interest. It’s best to have your taxes postmarked before midnight on the due date. If your tax return was filed electronically, and it was refused due to an error, then you may have an additional 5 days to correct and file.

How long will it take to get my refund?

If the tax return is electronically filed, the return usually takes between seven to fifteen days. If the return is mailed, it usually takes four to six weeks.

When is the tax return and payment due for a self-employed person?

June 15, 2023, is the deadline for self-employed individuals to file their 2022 income tax and benefit return. Although your tax filing deadline is June 15, 2023, your payment is due on April 30. We encourage you to pay by April 30th to avoid additional interest charges on your balance owed. June 15, 2023, is the deadline to file your taxes if you or your spouse or common-law partner are self-employed.

How to make payments to CRA and ARQ?

Pay Online:
- Online banking
- Pre-authorized debit (PAD) payments
- Debit card payments
- Credit card, PayPal, Interac e-Transfer payments
- Wire transfer and internationally issued credit card payments (option for non-residents)
Pay in Person:
- Visit our office to make a payment
Pay by Mail:
- Send a payment through traditional mail
Confirm Your Payment:
- Ensure your payment is successfully processed and confirmed.

What if I can't pay my debt to the government in one lump sum? Can I pay my debt over time?

If meeting your payment obligations is challenging, seeking assistance from a bankruptcy office may provide tailored solutions. Reach out to the CRA to initiate a conversation about your circumstances, understand the repercussions of non-payment, and explore alternatives if meeting your debt obligation is currently unfeasible. Options include deferring repayment to a future date when it aligns with your financial capacity. Initiate or modify a payment arrangement to better align with your financial capabilities. Engage in discussions about alternative avenues to address and resolve your outstanding debt.

You may find it necessary to remit installment payments if the CRA mandates you to cover anticipated tax liabilities for the upcoming tax year. These tax instalments involve making periodic payments throughout the year, serving as an advance contribution toward the total tax amount typically settled in a lump sum on April 30 of the subsequent year. Similar to an employer deducting taxes from each pay period, you fulfill these instalments while earning income. It becomes mandatory to remit tax instalments for the next tax year if your net tax owed exceeds $3,000 (or $1,800 for Quebec) in 2023, and either 2022 or 2021. Failure to meet these obligations may result in the imposition of interest charges and potential penalties for insufficient or missed payments.

When are Tax installment payments due?

they are due by the following dates (except for farmers and fishers who have one due date on December 31):

March 15, June 15, September 15, December 15

What do I do if I get a letter from the government to file my taxes?

If you receive a letter from the government demanding the filing of your taxes, it's important to comply promptly. Section 150(2) of the Income Tax Act empowers the CRA to require the filing of a return for a designated tax year. Whether you owe taxes or are entitled to a refund, you must file the return as instructed. Typically, the CRA provides a 30-day window for compliance. Failure to file the return after receiving such a demand is considered a criminal offense. Filing your return annually is a proactive measure to avoid government scrutiny, audits, or potential criminal investigations.

What can happen if I don't pay my tax bill?

If a tax assessment has been mailed to the taxpayer and full payment is not made immediately, the CRA can initiate collection actions. Failure to make a payment, contact the CRA for payment arrangements, or file an objection may lead to various collection methods. The CRA can garnish wages, withhold income tax refunds, seize bank accounts and other assets (such as a home or cottage), and register liens on property, among other measures.

What are the penalties and interest if I do not file on time?

Penalties and Interest for Late Filing:

If you fail to file your tax return on time and you owe tax, you may incur the following penalties and interest:

Penalty: 5% of the outstanding balance, plus an additional 1% for each month the return is late, up to a maximum of 12 months. This totals to a maximum penalty of 17%. If you've been late in filing in any of the last three previous years, the penalty can be higher. To avoid stress and potential penalties, it's recommended to contact Tax Doctors Canada as soon as possible.

Will i receive interest on my refund?

Interest on a tax refund begins to accumulate on the later of the following three dates:

The 31st day after you file your tax return.
31 days after the balance due date for the year, which could be May or July 15th if you are self-employed.

What are the documents needed for Tax?

We typically require financial statements, income records, expense details, and other relevant documentation. Our team communicates clearly about the information needed, making the tax preparation process efficient and accurate.

For Personal TAX the information that are needed are: Personal Information, income slips, employment (T4, RL-1), retirement, saving and investments, retirement and Social Benefits, and Employment Insurance.

What is the minimum income to file taxes in Canada?

There's no minimum income to file taxes in Canada. However, almost everyone get audited for not declaring enough income to cover their living expenses, investments or money in the bank.

What type of income do you have to report?

Employment and self-employment income. Report various sources of income, encompassing both employment and self-employment, such as commissions, foreign employment income, medical premium benefits, veterans' benefits, Wage Earner Protection Program proceeds, taxable benefits related to group term life insurance plan premiums, amounts received from supplementary unemployment benefit plans (including guaranteed annual wage plans), royalties, specific GST/HST and Quebec sales tax (QST) rebates, income-maintenance insurance plans (including wage-loss replacement plans), clergy's housing allowance, or eligible utilities. Additionally, include any employment income not documented on a T4 slip.
Pension and Savings Plans Income: Include income from pension and savings plans, such as Old Age Security, CPP or QPP benefits, and pensions received from other countries.
Investment Income: Disclose income generated through investments, encompassing interest, dividends, and capital gains.
Benefit Income: Report income derived from benefits, including Employment Insurance (EI) and other benefit programs, workers’ compensation benefits, social assistance payments, or Universal Child Care Benefit (UCCB)
All Types of Income: Conduct a comprehensive review of all income types applicable to your tax return. This includes referring to the guide for T1 and TP1, covering other pensions and superannuation. This involves payments from annuities, Pooled Registered Pension Plans (PRPP), and Registered Retirement Income Funds (RRIF), including life income funds. Also, consider pensions received from foreign countries.
Elected Split-Pension Amount and UCCB
Employment Insurance and Other Benefits
Taxable Amount of Dividends from Taxable Canadian Corporations, Interest, and Other Investment Income
Net Partnership Income (Limited or Non-active Partners Only)
Registered Disability Savings Plan Income
Rental Income, Support Payments Received
Registered Retirement Savings Plan (RRSP) Income
Lump-sum Payments, Retiring Allowance
Death Benefits (Other Than CPP or QPP Death Benefits)
Taxable Capital Gains: Calculating and Reporting Your Capital Gains and Losses
Capital Losses and Deductions
Shares, Funds, and Other Units
Capital Gains (or Losses) from Information Slips
Principal Residence and Other Real Estate
Transfers of Capital Property
Capital Gains and Losses from a Business or Partnership
Gifts of Shares, Stock Options, and Other Capital Property

What income is not reported or not taxable?

Amounts Exempt from Tax Under Section 87 of the Indian Act (Section 87 Tax Exemption).
Lottery Winnings of Any Amount, Except When Classified as Income from Employment, a Business or Property, or a Prize for Achievement • Most Gifts and Inheritances.
Amounts Paid by Canada or an Allied Country (Non-taxable in That Country) for Disability or Death of a War Veteran Due to War Service.
GST/HST Credit and Canada Child Benefit (CCB) Payments, Including Those from Related Provincial and Territorial Programs
Family Allowance Payments and the Supplement for Handicapped Children Paid by the Province of Quebec
Compensation Received from a Province or Territory if You Were a Victim of a Criminal Act or a Motor Vehicle Accident
Most Amounts Received from a Life Insurance Policy Following Someone's Death.
Most Types of Strike Pay Received from Your Union, Even if Performing Picketing Duties as a Membership Requirement
Most Amounts Received from a Tax-Free Savings Account (TFSA)

What deductions, credits, and expenses you can claim to reduce the amount of tax you need to pay or to obtain a maximum refund?

Family, Childcare, and Caregivers Deductions
Education Deductions
Disability Deductions
Pension Amount Deductions
RRSP Deductions
Employment Expenses Deductions
Provincial and Territorial Deductions
RPP (Registered Pension Plan) Deductions
Split Pension Deduction
Annual Union, Professional, or Like Dues Deductions

What do your clients need to provide you with to do your job?

To effectively assist you in achieving your business objectives, we need access to your online accounts and source documents, which can be provided in either electronic or hard copy format. Essential documents include, but are not limited to:

Business bank and credit card statements
Sales systems (POS)
Accounting software
Inventory records
Accounts payable and receivable data

Will you help me if I ever get audited?

Certainly. Audit representation is part of your monthly accounting fee, and you will not incur additional charges for this service unless the audit pertains to a period when you were not our client.

At Mackisen, we provide agent-level support, directly engaging with the IRS agent in the case of income tax audits. The majority of these matters are typically resolved at the agent level, eliminating the need for involvement in tax court proceedings. Additionally, if we handle your monthly sales tax returns, we will also represent you in the event of a sales tax audit. Our goal is to provide comprehensive support throughout the audit process.

Should I have my bookkeeping completed every month?

You have the flexibility to choose the frequency of updates – whether monthly, quarterly, or annually. However, for optimal benefits, regular updates are recommended. Many of our clients find monthly updates preferable, and we highly recommend this option to ensure you receive timely and accurate information.

What if I am audited by the government?

We recognize that being selected for a government audit can be a stressful situation. Rest assured, we will handle the response to any government inquiry and assist in preparing the necessary documents requested by the government. Your peace of mind is our priority during the audit process.

I've never enlisted the services of a bookkeeper, and my documents have become disorganized. Can you assist in this situation?

Certainly! Even if you haven't had a bookkeeper before and your documents have piled up, we can still help. Our team will take care of organizing and summarizing all your receipts, invoices, bank statements, credit card statements, and any other documents that may have accumulated. No need for pre-sorting or organizing – we've got it covered!

What makes Cash so crucial for businesses?

Cash is the lifeblood of your business operations, playing a crucial role in supporting growth. Insufficient cash can hinder your ability to cover essential expenses such as employee salaries, fund marketing and sales initiatives, acquire and retain customers, and carry out day-to-day activities like purchasing equipment and facilities. The cash flow of a business is a pivotal determinant of its potential for long-term success. Even a business with significant revenue can face failure if it struggles to generate sufficient cash.

What is the definition of self-employment?

Being self-employed means working for yourself. If you operate as a freelancer, a home-based business owner, consultant, or engage in side gigs, you likely have self-employment income.

In tax terms, as per the CRA (Canada Revenue Agency), you are considered self-employed if you function as an independent contractor, operate as a sole proprietor, or participate as a partner in a business partnership, providing a service or product with an expectation of profit. There are generally three classifications for self-employment:

Independent contractor: Providing a specific service for someone else on a contractual basis.
Sole proprietor: Running your business independently, and your business is unincorporated.
Partnership: Operating your self-employed business with two or more parties involved.

How can I determine my tax liability as a self-employed person?

As a self-employed person, you are required to disclose all income and expenses on your tax return. Whether your income is solely from self-employment or a mix of self-employment and regular employment, you can consolidate both sources into a single tax return.

What are the common returns I need to file?

Common Returns to File:

If incorporated, businesses need to file a corporate income tax return within six months from the year-end date. Corporate taxes are due within sixty or ninety days from the year-end date, depending on the nature of the income.

Other returns include:

• GST/HST for registered businesses with monthly, quarterly, or annual filing deadlines.
Payroll remittances, varying based on volume, with a typical monthly frequency for SMEs. T4 slips must be issued based on the calendar year by the end of February of the following year.
Workers Compensation Board premiums, typically due monthly, with an annual reconciliation.
Employer Health Tax premiums for businesses with a payroll exceeding $450,000.

How can I reduce my chances of an Audit?

The best defense against an audit is to file your tax return every year and on time. Why give the CRA a reason to examine your tax situation? Get it done! If you file a GST return, make sure the revenue on your business statement T2125 matches the revenue that is on the GST return.

Do I have to file a tax return?

You may need to file a tax return in various situations:

If you owe taxes.
If you receive a request to file from the revenue agency.
If you wish to split your pension with your spouse or common-law partner.
If you dispose of capital property.
If you have to repay Old Age Security or Employment Insurance benefits.
If you need to contribute to the Canada Pension Plan.
If you have not repaid your withdrawal from your RRSP under the Home Buyers' Plan or Life Long Learning Plan.

Should I incorporate my business?

Incorporating comes with both benefits and disadvantages. One significant advantage is limited liability, wherein the shareholders' risk is limited to the amount paid for their shares. The corporation operates as a separate legal entity, and the shareholders are not personally responsible for the company's liabilities. For instance, if you invested $100 in shares, your potential loss is capped at $100.

Another benefit is tax deferral. Corporations may pay tax, under certain conditions, at a rate of around 16%, whereas individuals, at the highest tax bracket, face a rate of approximately 46%. When income remains within the corporation, it incurs a 16% tax on active business income, providing a deferral of about 30% (46 – 16). However, once the income is distributed as a salary, the deferral ends.

On the downside, incorporating can be costly. Legal fees for incorporating the business might range from $1,000 to $2,000, and additional expenses include accounting fees for preparing financial statements and corporate tax returns.

Another drawback is that losses stay within the corporation. In the initial years of business, you may experience losses. While these losses can be carried forward for twenty years or carried back three years, if the corporation doesn't generate income, the losses expire. In contrast, as a sole proprietor, you could deduct these losses against other personal income, such as employment income.

Can CRA look at your bank account?

The CRA has the ability to see the contents of your bank account. The CRA regularly puts accounts with seemingly unscrupulous activity under their microscope. They are on the lookout for penalty-worthy offenses, such as over-contributing to a TFSA or undeclared income.

How the CRA Leverages Technology to Monitor Your Activities

As technology continues to revolutionize various aspects of our lives, the Canada Revenue Agency (CRA) is not exempt from leveraging these advancements for tax enforcement. In this digital age, the CRA employs sophisticated methods to scrutinize individuals and businesses, aiming to identify tax fraud and evasion. Here are four ways the CRA utilizes technology to keep tabs on taxpayers.

Online Buying and Selling Habits/Social Media: Platforms like eBay and Kijiji provide convenient online marketplaces, but the CRA closely monitors users who might be generating income through these channels. Failure to report profits made from online sales could attract the CRA's attention. Additionally, social media platforms like Facebook and Twitter are not exempt from scrutiny, with lavish posts potentially triggering further investigation.
Bank Accounts: The CRA has the ability to access and examine the contents of bank accounts. Accounts displaying suspicious or unscrupulous activities, such as over-contributions to Tax-Free Savings Accounts (TFSA) or undisclosed income, may be subject to closer examination by the CRA.
Computerization and AI: Artificial intelligence and computerization play a crucial role in the CRA's efforts to identify potential audit candidates. Retailers, equipped with vast consumer information, can share data with the CRA, allowing the agency to flag individuals for audits based on purchasing patterns and other relevant data.
Data Analysis and Net Worth Assessment: The CRA collects and analyzes vast amounts of data, creating "leads" for CRA agents to investigate further. This information serves as a basis for conducting a net worth assessment and estimating an individual's income. Subsequently, taxpayers must defend themselves against these assessments, working with their accountants to challenge figures that seem inaccurate or inflated.

What are the requirements for filing for businesses?

For businesses operating in Canada, adhering to the requisite filing requirements is vital to maintaining compliance with tax regulations. This overview outlines the key obligations businesses must fulfill regarding corporate tax returns, Goods and Services Tax (GST), Quebec Sales Tax (QST), and source deductions for employees.

Corporate Tax Return: Every business, whether incorporated or not, is obligated to file an annual corporate tax return. The filing deadline is typically within six months from the year-end date. Incorporated businesses must adhere to specific deadlines, with variations based on the nature of the income.
Goods and Services Tax (GST) and Quebec Sales Tax (QST): Businesses with annual revenues exceeding the specified threshold are required to register for GST and possibly QST. Once registered, they must remit these taxes to the Canada Revenue Agency (CRA). The frequency of remittance—monthly, quarterly, or annually—depends on the business's sales volume.
Source Deductions for Employees: If a business has employees, it is responsible for withholding and remitting source deductions, including income tax, Canada Pension Plan (CPP), and Employment Insurance (EI). Businesses must accurately report these deductions to the CRA and remit the withheld amounts on a regular basis.
Quebec Tax Return (for Businesses Registered in Quebec): For businesses operating in Quebec, an additional requirement is filing the Quebec tax return. This return is separate from the federal corporate tax return and must be submitted to Revenu Québec.