Coming clean to the CRA
A small-business owner, who has not kept up with their taxes, is concerned that their receipts and bookkeeping haven’t been recorded properly, and they want to know if a ballpark estimate can be made and submitted to the Canada Revenue Agency (CRA). Since the burden of proof is on the company, the best advice is for them to hire a bookkeeper or accountant to go through their business records and recreate the books. In the event of a review or audit, any company estimating could be subject to paying significantly more without proof.
- After not filing taxes for a couple years, a small business wants to know if they can file late taxes through estimation.
- Business owners are required to keep accurate records each year, so hiring a good accountant to get caught up is imperative.
- File late taxes as soon as possible to minimize penalties and interest.
“By not keeping records, you are inviting CRA to do the estimating for you—and they will estimate high.”
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