The tax man cometh for small businesses, too. How to be ready
Operating a business can be especially expensive, so don’t be afraid to use the legal deductions you have coming, but know what you can claim, keep records, know your deadlines and do it correctly. For instance, business expenses can offset tax liability, but this can also draw CRA’s attention to a small business. Any expenses incurred in the course of operating your business, whatever its size, can be used to offset tax liability and reduce what you’ll owe come tax time. Different kinds of expenses have different levels and rates of deduction, so check the tax code or consult a tax professional to be sure you’re taking advantage.
“Entrepreneurs will want to take advantage of any breaks and credits offered by the Canada Revenue Agency, but they also need to stay on the right side of the tax man.”