How To Ensure Rental Income Within Your Corporation is Active Business Income
How To Ensure Rental Income Within Your Corporation is Active Business Income May 5, 2023 Tax Question: How do you ensure your rental income within
Home » News » Canadian Tax FAQs » How do I reduce my chance of having a tax audit on my corporation?
Tax Question:
How do I reduce my chance of having a tax audit on my corporation?
Facts:
Both the Federal and Provincial governments are reluctant to introduce new taxes. Just look at the backlash of the introduction of HST into BC in 2010 and the political fallout that ensued. Healthcare, transportation and retirement costs are escalating and the government needs to generate revenue to fund the many services they provide. To meet this ever-widening chasm, CRA is sending out more and more auditors to identify where tax was missed either by honest mistakes or through aggressive tax planning. Collecting tax revenue that CRA was entitled to be easier and less politically sensitive than to raise taxes or introduce new tax measures. Audits are now a fact of life. It is not if you are going to be audited, but when.
There are some things you can do to help reduce the risk of an audit.
If you would like more information on this topic, please contact a member of the Empire CPA team by filling out the contact form below.
Canadian and foreign tax laws are complex and have a tendency to change on a frequent basis. As such, the content published above is believed to be accurate as of the date of this post. Before implementing any tax planning, please seek professional advice from a qualified tax professional. Empire, Chartered Professional Accountants will not accept any liability for any tax ramifications that may result from acting based on the information contained above.
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