We receive a lot of questions, however, we answer only one question each week which we think is relevant and helps general public at large.


1What is your fees?
Our fee is based on time we spent on particular assignment. Professional time of consultants or associates is billed at hourly rates as quoted by mutual agreement. However, block rate fee is charged for many defined tasks performed. In any case, clients are given variety of choices to choose from based on their particular need.
2Do I need to file taxes each year?
Yes, you must file taxes even if you did not work for that year.
3How much refund will I get?
It is very hard to tell as it is. We have to access your person tax situation and calculate based on your information. Please contact our office for more information.
4I am just a sole proprietor. Can I be your client?
It does not matter if you are a sole proprietor or a big corporation or small business owner; we are always committed to provide excellent and customized service taking in to consideration the unique requirements of our each and every client. So, we will more than happy to assist you.
5I have a two liquor stores. Do you deal with liquor store business?
Yes, we definitely deal with liquor store business. To further elaborate on your question, our clients are from wide range of businesses, including:
Owner-managed companies
Franchisee Business (Subway/ Mac-Stores etc.)
Liquor store franchise
Transportation & logistics Business
Professional Corporations - Lawyers, Doctors & Other Professionals
Service businesses – Real Estate Brokers, Mortgage Brokers and others
Property Management Companies
Construction Companies
Retailers, Manufacturers and Distributors
Investors and Entrepreneurs
6Dear Mr. Sandhu, I have 3 gas stations. I know little bit of accounting and able to run payroll, and file GST but still needs some one to help me in handling rest of financial affairs such as filing taxes, reconciliations etc. I want to know how much would you charge?
This is very common question asked by those involved in retail business. We always encourage such clients to learn basic accounting principles and we can provide them on site and off site training to small business owners. This helps them save money in long run.
As far as our fee is concerned, it is difficult to say without reviewing your paper work. But certainly, if you have taken care of your paper work properly, we will be very nominal in our fee. We always want to help you, and wish you succeed in your business. We are always committed to customize solutions meeting your needs.
7What kind of accounting engagement is the more appropriate for my business?
There are three types of accounting engagements: Audit, Review or Notice to Readers.
The type of engagement will depend on the requirements imposed by regulatory and financing institutions as well as by private investors and or stockholders.
In general, a Review engagement is the most common of the three for private corporations that have obligations with financial institutions, or expect to sell the business in the future.
Audits provide additional assurance and credibility to external readers of your company's financial statements.
Notice to Readers is the very basic type of engagement that is acceptable when the owner/principal and CCRA are the only readers of those financial statements.
8How do I know how much a business is worth?
The only way is by getting a Valuation conducted on the target business by an experienced Business Valuator. The Business Valuator will determine the fair market value of the shares or of the assets of the company by following basic rules of financial analysis and operations appraisal applied on historical, future oriented and statistical data of the company and the industry gathered on your behalf. The results of the valuation will come in the form of an Opinion, Estimation, or an Indication of Value of the shares or assets of the company that you are attempting to buy or sell.
9Do I have to pay tax on income from my foreign assets when I immigrate to Canada?
Residents of Canada are subject to taxation on their worldwide income. Section 94 of the Income Tax Act provides new immigrants a tremendous planning opportunity. Non-residents who move to Canada can essentially enjoy a five-year tax holiday by setting up an immigration trust. Assets in a properly structured trust grow tax-free for up to five years.
In order to have the maximum time for the trust to escape Canadian tax, it should be set up before the person becomes resident in Canada. However, it can be set up after the immigrant takes up residence in Canada. Proper planning is essential to avoid the attribution rules of the Income Tax Act that can effectively wipe out the tax holiday.
10What happens when I leave Canada to work abroad?
Many individuals leave Canada for a few years to work or study abroad. While these individuals generally can, if they wish, remain resident in Canada for tax purposes, some may prefer to give up Canadian residence, or may be required to do so
Canadian tax rules deem an individual who ceases Canadian residence to have disposed of each property owned at proceeds equal to fair market value. Any accrued taxable capital gain would be taxed in the year of departure. The taxpayer can use any available capital gains exemption to shelter the gains from deemed disposition, or minimize the departure tax.
There are exceptions from the departure tax such as property situated in Canada, shares of a private corporation which is resident in Canada, certain pension benefits and employee stock options.
11What do I need in order to open or increase my operating line of credit?
Most financial institutions normally request the applicant to provide financial statements of the previous three years. These statements, at a minimum, must be reviewed by a certified professional accountant. Notice to Readers statements compiled for tax filing purpose are of limited use.
Generally banks look at the strength of various components such as:
Cash flow
Fixed assets
Debt to Equity and other ratios
Aged list of receivables
Aged list of payables
Personal Statement of Affairs
Cash collateral or equivalent (Mutual funds, CSBs, stocks, subordination of shareholders loans, etc.,)
Other collateral such as a charge over property or equipment

Important Deadlines

Personal Tax Returns: are due on or before April 30th of every year. Balance owing is due on or before April 30th of every year. Tax returns for sole proprietorships, partnerships and limited partnerships are due on or before June 15th of every year. Balance owing is due on or before April 30th of every year.

Corporate tax returns: are due 6 months after year end. Balance owing is due 2 months after year end.

For Payroll: T4 payroll summary must be filed by February 28th of every year.

Monthly remittances are due at the 15th of every month..

Late filing penalty of 5% + 1% will apply to all outstanding balances owing.

Repeated failure to file, a penalty of 10% + 2% will apply.

Interest on all outstanding balances owing will be computed at the prescribed rate from the day on which the amount was required to be paid to the day payment was received by CRA.

T5 dividend summary must be filed by February 28th of every year.

T5 dividend summary late filing penalty can be as high as $1,000 for failure to comply

Interest/Penalties

For personal taxes, late filing penalty of 5% + 1% will apply to all outstanding balances owing.

For business returns, you get late filing penalty of 5% + 1% will apply to all outstanding balances owing.

For Corporation returns late filing penalty of 5% + 1% will apply to all outstanding balances owing.Repeated failure to file, a penalty of 10% + 2% will apply.

Interest on all outstanding balances owing will be computed at the prescribed rate from the day on which the amount was required to be paid to the day payment was received by CRA.

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